U.S. Senator Tina Smith says the Family Farmer Relief Act of 2019 will help farmers survive the current financial crisis. Smith helped introduce the bill that has now passed the House and Senate.
“What we want for farmers to be able to do is when they get that debt to asset ratio that is getting too high, we want them to be able to reorganize their business, repay their debt, and keep their farm. And that’s what this (bill) does.”
The legislation streamlines the process of reorganizing debt through Chapter 12 bankruptcy rules and more than doubles the debt limit from $3 million to $10 million. Meanwhile, bankers are concerned these changes will bring added risk:
“I trust farmers and their bankers, their farm credit (institutions), and everybody who is helping to try and keep family farmers going in this really tough time.”
Smith says President Trump is expected to sign the Family Farmer Relief Act into law.