House Passes Bill
On Ag Bankruptcies

WASHINGTON —(AP)— Farmers struggling after a year of falling prices would continue to have additional bankruptcy protection under a bill the House passed last Thursday.

The measure, approved 418-1, would extend Chapter 12 bankruptcy protection to farmers for six months. Chapter 12 of the bankruptcy code, enacted in 1986, allows family farmers to reorganize their debts instead of liquidating assets.

It is the second proposed extension of the measure as lawmakers continue work on an overall bankruptcy reform bill. Chapter 12 is set to expire on April 1.

``This measure will provide a crucial safety net to farmers,'' said Rep. Tammy Baldwin, D-Wis., adding that lawmakers should move to make Chapter 12 bankruptcy protections permanent. ``I do not want America's family farmers to be held hostage to congressional deliberations that may not be completed in time.''

The program is intended for farmers who receive more than half of their income from farming, who have total debts of less than $1.5 million and whose debts from farming operations are at least 80 percent of total debts.

This year, thousands of farmers have been hit hard by low prices that are expected to continue this year.

Rep. Ron Paul, R-Texas, voted against the bill, which the Senate has yet to consider.