1. Short title
This Act may be cited as the “Farmer Flexibility Act of 2014”.
Farmer Flexibility Act of 2014
A BILL
To amend the Agricultural Act of 2014 to require the Secretary of Agriculture to extend the term of marketing assistance loans in cases in which a purchaser has bought the loan commodity subject to the loan and declared bankruptcy prior to paying for the loan commodity.
2. Extension in certain cases of bankruptcy
Section 1203 of the Agricultural Act of 2014 (7 U.S.C. 9033) is amended—
by striking “The Secretary” and inserting the following:
“(1) In general—Except as provided in paragraph (2), the Secretary”
by adding at the end the following:
“(2) Extension in certain cases of bankruptcy
“(A) In general—This paragraph applies in any case in which—
“(i) the producers on a farm have a marketing assistance loan under section 1201 for a loan commodity;
“(ii) the producers have sold, transferred, or delivered the loan commodity subject to the loan to a purchaser; and
“(iii) prior to the purchaser paying the producers full payment for the loan commodity, a case under any chapter of title 11, United States Code, has been commenced in which the purchaser is the debtor.
“(B) Extension—In a case described in subparagraph (A), the Secretary shall—
“(i)
“(I) extend the term of the marketing assistance loan until the date on which the case under title 11, United States Code, is closed or dismissed to a date that is at least 180 days following the final resolution of the bankruptcy case; and
“(II) extend the deadline for repayment of any installment of an ownership, operating, or emergency loan made under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) until the date on which the case under title 11, United States Code, is closed or dismissed to a date that is at least 180 days following the final resolution of the bankruptcy case; and
“(ii) if the purchaser has taken possession of the loan commodity, suspend the accruing of interest during the period of any extension under clause (i).”