U.S. SENATOR PATRICK LEAHY

[(THURSDAY, Oct. 7) – The Senate late Wednesday night passed a bill coauthored by Senator Patrick Leahy (D-Vt.) renewing and extending key bankruptcy protections for family farmers.  Leahy, the ranking Democratic member of the Senate Judiciary Committee, over the years repeatedly has led in convincing congresses and two presidents to renew and extend these temporary protections when they have lapsed, and on Wednesday he urged that these protections be made permanent.  The Leahy-led bill now moves to the House for its consideration.  Below is Leahy’s statement on the bipartisan bill, followed by a letter from organizations representing the nation’s family farmers, urging the bill’s passage.]      

Statement of Senator Patrick Leahy
On Senate Passage Of
The Family Farmer Bankruptcy Relief Act, S. 2864

October 6, 2004  

Mr. President, I am pleased that the Senate is passing legislation to renew and extend family farmer bankruptcy protection through June 30, 2005.   

Senator Grassley and I introduced the Family Farmer Bankruptcy Relief Act, S. 2864, to retroactively renew and temporarily extend these protections that our farmers have come to rely upon because Chapter 12 of the Bankruptcy Code expired on January 1, 2004. Representative Tammy Baldwin and Representative Nick Smith have introduced companion legislation in the House of Representatives.   

But our bipartisan legislation is just a short-term fix.  We need to stop playing politics and permanently reauthorize the Chapter 12 family farmer protections.    

Too many family farmers have been left in legal limbo in bankruptcy courts across the country because Chapter 12 of the Bankruptcy Code is still a temporary measure. This is the eleventh time that Congress must act to restore or extend basic bankruptcy safeguards for family farmers because Chapter 12 is still a temporary provision despite its first passage into law in 1986. Our family farmers do not deserve these lapses in bankruptcy law that could mean the difference between foreclosure and farming.   

Mr. President, I ask unanimous consent that a letter from many representatives of family farmers that underscores the need for renewing the Chapter 12 bankruptcy protections be printed in the Record at the end of my remarks.

It is time to end this absurdity and make these bankruptcy protections permanent.  Everyone agrees that Chapter 12 has worked.  It is time for Congress to make Chapter 12 a permanent part of the Bankruptcy Code to provide a stable safety net for our nation's family farmers.  

I will continue to work with Senator Grassley, Senator Feingold, Representative Baldwin, Representative Nick Smith and others on both sides of the aisle to pass legislation that once and for all assures our farmers of permanent bankruptcy protections to help them keep their farms.  In the meantime, the House of Representatives should quickly pass the Family Farmer Bankruptcy Relief Act and end the current lapse in basic bankruptcy protections for our family farmers.  

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(Below is a letter from family farmers, rural residents and others urging action on the bill.)
 

October 6, 2004 
 

The Honorable Patrick Leahy
U.S. Senate
Washington, D.C. 20510
 

Dear Senator Leahy,  

The undersigned organizations urge immediate passage of S. 2864 that reinstates Chapter 12 bankruptcy provisions for our nation’s family farmers.  Since January 1, 2004 farmers facing serious financial problems resulting from low commodity prices, increasing production costs, and natural disasters have not been able to consider filing a Chapter 12 bankruptcy.   

The need for a separate bankruptcy code that enables farmers to stay on the land while reorganizing their debt is as urgent now as it was in 1986 when initially enacted by Congress.  This lapse in coverage results in farmers having to face foreclosure and liquidation. Instead, Chapter 12 would offer farmers the opportunity to negotiate with their creditors.  This benefits the farm family, their creditors and rural businesses.   

Please act quickly. Every day that Congress delays on Chapter 12 has a direct cost to our nation’s family farmers and rural communities.  
 

Sincerely,   

American Corn Growers Association
Association of Chapter 12 Trustees
Community Food Security Coalition
Family Farm Defenders
Farm Aid
Farm Wives United (New York)
Federation of Southern Cooperatives
Livestock Marketing Association
National Bankruptcy Conference
National Catholic Rural Life Conference
National Family Farm Coalition
National Farmers Union
New York Sustainable Agriculture Working Group (NYSAWG)
Northeast States Associationn for Agricultural Stewardship (NSAAS)
Rural Advancement Foundation International (RAFI-USA)
Rural Coalition/Coalicion Rural
Southern Sustainable Agriculture Working Group (SSAWG)
Soybean Producers of America
Women, Food, and Agriculture
 

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