Farm Mediation is still an available option

By Nathan Winter
Extension Educator – Agricultural Productions Systems
McLeod/Meeker County
I have received reports from other local County Extension Offices receiving phone calls requesting information on how a farmer would file for mediation. Under the old system, the farmer would contact the local County Extension Office for the paperwork to begin the process. Under the NEW system, the farmer needs to contact the state mediation office to begin the process. That contact information is: Mediation Director Mary Nell Preisler, 218-935-5785, preis002@umn.edu.

The Minnesota State Legislature recognized the need to support both farmers and lenders in managing agricultural debt. The 1986 Omnibus Farmer-Lender Bill includes a program of farmer-lender mediation to facilitate discussions on credit problems. Since 1986, University of Minnesota Extension has managed this successful mediation program.

In 2008, 2,002 mediation cases were opened, and $156.3 million in debt was negotiated. This mediation means better results for farmers, as well as banks, implement dealers and manufacturers, credit services and other lenders who are critical to rural America. To take advantage of the mediation opportunity, the debtor must request services within 14 days of a creditor’s notice.

The Minnesota Legislature has renewed the Farmer-Lender Mediation program for another four years and also updated the forms lenders use to request mediation. The updated forms will provide policy makers additional information about the amount of debt that triggers the first mediation notice.

The additional information the forms require will be needed on all mediations requested after July 1, 2009. The sample letters and a packet of information about the state statute is part of the University of Minnesota Extension website www.extension.umn.edu and can be accessed at http://www.extension.umn.edu/Community/Mediation. The information is also available by contacting the University of Minnesota Extension Farmer Lender Mediation office via email preis002@umn.edu or phone (218) 935-5785.

The Minnesota Farmer-Lender Mediation program is part of USDA's Certified State Agricultural Mediation Program that provides farmers and their creditors the opportunity to renegotiate, restructure, or resolve farm debt. The law requires that a creditor with a secured debt of more than $5,000 against an agricultural property offer mediation before proceeding with foreclosure, repossession, cancellation of contract, or collection of a judgment. A team of mediators, financial analysts and other University of Minnesota Extension professionals manage the program.