The Minnesota Department of Agriculture wants to remind the state's farmers and ag lending institutions that the length of mediation available for farmers in the Farmer-Lender Mediation Program has been extended by the state legislature from 90 to 150 days.
“This is a critical program for farmers — especially now when COVID-19 has caused the closing of agricultural markets," said Thom Petersen, MDA ag commissioner. "Having sixty more days to renegotiate or restructure will be a huge help in many cases."
Minnesota farmers who are in debt can renegotiate, restructure or resolve farm debt through mandatory Farmer-Lender Mediation. Under mandatory mediation, creditors cannot collect a debt against an agricultural property until an offer of mediation has been extended. If a farmer chooses to do the mediation, creditors cannot collect a debt until it's completed.
In a press release by the Minnesota Farmers Union, the Farmer-Lender Mediation Program was called a "lifeline for farmers during times of economic hardship". MFU President Gary Wertish sent a letter in early April to the governor and attorney general, calling for an extension to the deadline of the program.
“Farmer-Lender Mediation has helped family farmers reach mutually beneficial agreements with lenders on financial plans since 1986," he said.
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Wertish said that because of the "emotional nature of mediation", it’s best done in person, but the state's stay-at-home order prevented that from happening.
For more information on the program, farmers can contact the MDA’s Farm Advocate Program at www.mda.state.mn.us/farmadvocates , or the University of Minnesota Extension https://extension.umn.edu/get-help/farmer-lender-mediation .
