A key provision of my legislation prohibited lenders from foreclosing on property if the farmer was able to make rental payments. What's more, the farmer was not required to obtain creditor approval of his reorganization plans. An Iowa State University study showed that at least 80 percent of Iowa farmers who filed for Chapter 12 protection in 1986 and 1987 stayed in farming. For sure, this overwhelming success rate is higher than many people ever expected. Chapter 12 has proven itself a viable safety net and kept more farmers in business.
Times are good on the farm.
As a policy maker, I know we must be ready for what may lie ahead. Chapter 12 served as a good solution for many family farmers in the 80s. It's scheduled to expire next year. That's why I am working to make Chapter 12 a permanent fixture. It served as an effective tool in the 1980s.