Executive Summary of Program Results in Federal Fiscal Year 2009

By the numbers

3,107 mediation notices were received from creditors who had sent notices to agricultural debtors. This is an increase of 55.2% over 2008 and an increase of 85.6% since 1999.
Debtor(s) for 1,192 of the notices, or 38%, requested mediation.
639 notices completed mediation in 2009. Of these, 66% reached a settlement while 34% did not.
An estimated 33,338 individuals, consisting of participants in mediation or others interested in the program, received the services of 12 part-time mediators, 4 part-time financial analysts, 2 part-time Community Program Specialists, 2.25 administrative staff and a full-time program director working a total FTE of 5.67 in FFY 2009.
The total number of notices was 3,107. The average cost per notice was $134.15.

Debtor(s) for 1,915 of the notices waived mediation. With waived notices, debtor(s) and creditors may have worked out a resolution such as making the debt current, restructuring the debt, filing bankruptcy or abandoning the collateral.
The total amount of debt reported and addressed in mediation sessions was approximately $322.8M. The approximate breakdown was as follows: Banks $124.5M, Farm Service Agency $116M, Farm Credit Services $48.5M, Main Street Suppliers and Small Businesses $18M, Contracts $9.5M, Implement Companies $5M and overdue taxes 1.1M.

Geographically: Based on the Minnesota Agricultural Statistics Districts, the debtor(s) receiving notices of mediation were geographically distributed as follows, in descending order: Central 24%, Southeast 21%, East Central 15%, Northwest 12%, West Central 10%, Southwest 8%, South Central 6%, North Central 3% and Northeast 1%.
Creditors: The type of creditor sending the initial notice of mediation was, in descending order: Banks 39%; Implement Dealers and Manufacturers 33%; Farm Credit Services, AgStar, AgCountry and AgriBank 21%; United States Department of Agriculture and Farm Service Agency 4%; Contracts for Deed 2% and Others 1% (Judgments, small business accounts and etc.).
Farm enterprises: The primary commodity enterprise of the debtor(s) was (in descending order): crop 35%, dairy 31%, cattle 19%, hogs 12%, horses 2% and other 1%.
Ownership: The type of ownership structure of the farming entity involved included: 68% sole proprietors, 23% partnerships, 9% corporations, and less than 1% trusts.
The average farm debtor recorded in mediation was a 51.4 year-old sole proprietor (ranging in age from 21 to 84 years old), who had owned the land for 15.8 years; owned 236 acres; rented 405 acres; had an average net worth of $532,656; had an average agricultural debt of approximately $279,921; had median non-farm income of $69,788 and median family living expenses of $39,518 per year.


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