[Congressional Record (Bound Edition), Volume 150 (2004), Part 15]
[Senate]
[Pages 21045-21046]
[From the U.S. Government Publishing Office, www.gpo.gov]




              FAMILY FARMER BANKRUPTCY RELIEF ACT OF 2004

  Mr. McCONNELL. I ask unanimous consent that the Judiciary Committee 
be discharged from further consideration of S. 2864, and the Senate 
proceed to its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (S. 2864) to extend for eighteen months the period 
     for which chapter 12 of title 11, United States Code, is 
     reenacted.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. LEAHY. 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.
  The PRESIDING OFFICER. Without objection, it is so ordered.

[[Page 21046]]

  (See exhibit 1.)
  Mr. LEAHY. 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.
                                                  October 6, 2004.
     Hon. Patrick Leahy,
     U.S. Senate,
     Washington, DC.
       Dear Senator Leahy: The undersigned organizations urge 
     immediate passage of S. 2864 that reinstates Chapter 12 
     bankruptcy provisions of 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 Association 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.

  Mr. McCONNELL. Mr. President, I ask unanimous consent that the bill 
be read a third time and passed, the motion to reconsider be laid upon 
the table, and that any statements relating to the bill be printed in 
the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 2864) was read the third time and passed as follows:

                                S. 2864

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Family Farmer Bankruptcy 
     Relief Act of 2004''.

     SEC. 2. EIGHTEEN-MONTH EXTENSION OF PERIOD FOR WHICH CHAPTER 
                   12 OF TITLE 11, UNITED STATES CODE, IS 
                   REENACTED.

       (a) Amendments.--Section 149 of title I of division C of 
     Public Law 105-277 (11 U.S.C. 1201 note) is amended--
       (1) by striking ``January 1, 2004'' each place that term 
     appears and inserting ``July 1, 2005''; and
       (2) in subsection (a)--
       (A) by striking ``June 30, 2003'' and inserting ``December 
     31, 2003''; and
       (B) by striking ``July 1, 2003'' and inserting ``January 1, 
     2004''.
       (b) Effective Date.--The amendments made by subsection (a) 
     are deemed to have taken effect on January 1, 2004.

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