HOW TO GET STARTED

Farmers wishing to participate in Farmer-Lender

Mediation must ask for a Request for Mandatory

Mediation form. Please request this form from:

Mary Nell Preisler

Program Director

1526 – 170th Avenue

Bejou, MN 56516

Phone: 218-935-5785

Email: preis002@umn.edu

This request form must be returned within fourteen days. Those who do not return the form within fourteen days waive their right to mediation.

If you request mediation, you need to be as

prepared as possible. Part of your preparation

will be to carefully review your situation and

the reasons for that situation. In completing

the Request for Mandatory Mediation form,

make sure to identify all creditors necessary

for your farming operation. The next step will

be an orientation meeting between the farmer,

creditor, financial analyst and the mediator to

explain the process and to determine if financial

information needs to be prepared.

NOTE: This program is one of four types of mediation service provided for under the Omnibus Farm Bill. In certain circumstances, farmers/debtors may also choose to participate in Voluntary Mediation, Rural Dispute Resolution, or USDA National Appeals Division (NAD) mediations. For more information about these, contact Mary Nell Preisler, Farmer-Lender Mediation Program, 1526 170th Avenue, Bejou, MN 56515.

Farmer Lender MediationSEEKING SOLUTIONS IN DIFFICULT TIMES

© 2015, Regents of the Univerity of Minnesota. University of Minnesota Extension is an equal opportunity educator and employer. The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, political beliefs, genetic information, reprisal, or because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at 202-720-2600 (voice and TDD).

To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, D.C. 20250-9410 or call toll free at (866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal relay).

University of Minnesota Extension administers the Mandatory Farmer-Lender Mediation Program, and has handled more than 54,000 debt notices and over 20,000 mediation requests since 1986.

For further information, contact:

Mary Nell Preisler, Program Director 1526 – 170th Avenue Bejou, MN 56516

Phone: 218-935-5785 Fax: 218-935-9053 Email: preis002@umn.edu

Or visit the Farmer-Lender Mediation website: www.extension.umn.edu/agriculture/farmer-lender-mediation

If you have questions about mediation, contact the Statewide Farmer-Lender Meditation Program at 218-935-5785.

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.

What is “Farmer-Lender Mediation”?Mediation makes use of a trained, neutral mediator

to assist in negotiations between parties in dispute.

Mediation is an informal and confidential process

that generally calls for less time and money than

adversarial court litigation. Mediators advise,

counsel and assist parties on ways to come to

agreement, but do not tell parties how they should

conduct their business or personal affairs.

Debt happens to farmers. In fact, the need for investments in land and equipment requires most farmers to carry debt. Unfortunately, this debt can lead to farm foreclosures and major lifestyle changes.

A creditor 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 a

judgment. Mediation offers a farmer in debt

the opportunity to renegotiate, restructure,

or resolve farm debt during the 90-day period

when creditors may not collect on the debt.

FARMER-LENDER MEDIATION WORKS TO:

• Achieve open communication among parties

• Create a non-hostile environment

• Define the rights and responsibilities of the debtor and creditor

• Treat all parties with dignity and respect

• Resolve differences and produce agreements acceptable to all parties involved

“The mediation process provided a neutral environment for problem-solving, exploring options and presenting proposals.”

— DEBTOR

“The mediation process contributed in a positive manner to resolve every situation.”

— BANKER

Good for Farmers. Good for Lenders.Successful mediation requires compromise on

the part of both debtor and creditor. Farmers

may have to change their business to make it

more profitable, or liquidate assets to bring cash

to the table. Creditors may need to restructure

debt and security or reschedule loan payments.

Trained mediators use conflict resolution to bring

about effective negotiation. The mediator helps

define issues, emphasizes common goals, keeps

discussion moving forward, looks at all options,

reduces fault finding and, most importantly,

provides each party a chance to be heard.

Mediation helps those involved retain control

over the outcome through a joint decision-

making process. When parties meet face-to-face,

trust is built. The parties have a strong incentive

to make their agreement work, because they

created the agreement themselves.

Good for Minnesota.The Farmer-Lender Mediation program saves

farms, keeps local businesses healthy, and

assures stronger bonds between farmers and

the businesses that are important to their

communities.