Seeking Solutions in Difficult Times
Credit is essential to farmers. In fact, the need for investments in land and equipment requires most farmers to carry debt. Unfortunately, debt can lead to farm foreclosures and major lifestyle changes.
According to state law, creditors with a secured debt of more than $5,000 against an agricultural property must offer Farmer-Lender Mediation before proceeding with foreclosure, repossession, cancellation of contract, or collection of judgment. Mediators act as neutral facilitators, seeking a solution that is beneficial to the farmer, the lender and the local economies where they do business. Since 1986, Extension has provided farmer-lender mediation services in Minnesota.
In 2010, mediators completed 409 cases, addressing 1,273 debt notices. The amount of debt addressed in 2010 totaled over $623 million. The program received 3,064 new notices during fiscal year 2010, which is a 9% increase over the number of new notices received during the prior fiscal year.
To take advantage of the mediation opportunity, the debtor must request services within 14 days of a creditor’s notice. Contact the Farmer-Lender Mediation Office
About Farmer-Lender Mediation