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The legal definition of a family farmer is unique to Chapter 12, as provided by 11 U.S.C.
1201, et seq. Primarily, the statutory definition is based on
income earned, or more specifically, the source of earned income. Hobby
ranches and recreational farms seldom produce enough income to sustain
qualification, because the historical record of earnings, standing
alone, must support repayment of all personal debts according to the
terms of the plan. A Chapter 12 plan is unique in that payments may be
timed annually to correspond with harvests.
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