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Honored Advisor
Posts: 17,966
Registered: ‎05-13-2010

Re: Raising limits on Chapter 12

I`m a little surprised that at least the foundation of a farm debt bailout was being started this early ...and after the 1986 fiasco ag lenders were supposedly required to have more collateral so "it`d never happen again" and those of us farm borrowers do pay a little higher interest to pay for that bailout which essentially of our nextdoor competition that still bids $400 land rent.

 

I hear 2 opinions on it, one being "the government can`t afford to  bail `em out again" and the other being when gossiping about a 1986 bailout clown still going nuts buying land and machinery "He got bailed out last time and they`ll bail him out again...he has no shame" .  Looks like the setup will be going in the latter direction.

 

Chapter 12 was put in on an emergency in the 80`s, those that got in over their head with debt and were responsible probably got out or were sold out long before chapter 12 even came along. That Stamp Farms outfit with their 40,000 acres Top Producer of the year in 2012, see if he could`ve held out a few more years and could be gotten in on chapter 12 instead of chapter 11, he`d be the finalist for 2020 "Top Producer of the year" farming 80,000 acres.

 

The bankers must be privately telling these politicians that the tsunami of foreclosures is coming, bank examiners must`ve been asleep at the wheel again.   The heck of it is those of us that are sensible are the one`s that have a target on our backs, because literally if you owe the bank $100,000 and have trouble, YOU have a problem, if you owe the bank $10 million and can`t pay then the BANK is the one with the problem.  Of course with chapter 12 it painlessly goes on the taxpayer`s tab.