The Senate on Thursday by voice vote passed the bill to raise the cap on Chapter 12 farm bankruptcy to $10 million.
The bill, titled the Family Farmer Relief Act, has already passed the House, and it will now go to President Donald Trump for his signature.
The House passed its bill by a voice vote last week. The bill would left farmers use Chapter 12 bankruptcy if they have an asset limit under $10 million, compared to $4.15 million under current law.
Farm loan delinquencies and bankruptcies are rising across the country according to government data, the American Farm Bureau Federation’s Market Intel service noted Thursday in an analysis.
AFBF stated loan delinquencies were inching up, according to FDIC data, with delinquency rates for agricultural loans for real estate and non-real estate loans both at six-year highs. Both rates have not inched above historical averages. Surprisingly, though, the AFBF calculations show delinquency rates remain below 2009-2014 levels when farm income was generally at higher levels than now.
Through the end of June, there were 535 Chapter 12 bankruptcies in the prior 12 months. Chapter 12 bankruptcies are the highest since 2012 when 582 such filings were reported.
AFBF shows Wisconsin led the nation with 45 Chapter 12 cases, followed by Oklahoma with 39 and Minnesota with 31 cases.
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