ABA Letter to Express Opposition to H.R. 2336, the Family Farmer Relief Act

On behalf of the members of the American Bankers Association (ABA), I write to express our opposition to H.R. 2336, the Family Farmer Relief Act, which is scheduled to be considered on the House floor today under Suspension of the Rules. As written, this legislation amends Chapter 12 of the Bankruptcy Code by dramatically raising the current debt limit for Chapter 12 filings from approximately $4.3 million to $10 million.

Chapter 12 bankruptcy is a very complex issue that requires many different parties to work together. Bankers are very supportive of our farm and ranch customers and as their partners we want them to be as successful as possible. When it comes to increasing the debt limit on Chapter 12 bankruptcy by more than double – from approximately $4.3 million to $10 million – bankers are concerned that such a large increase will be detrimental to the costs of credit for farmers in the long run.