The Farm Debt Mediation Scheme helps farmers and other primary producers struggling with debt.
The scheme is open to people involved in a primary production business. This includes any business that mainly produces unprocessed materials. This can be through agriculture, horticulture, aquaculture, or apiculture. It includes sharemilkers.
When
If the farm business is experiencing difficulties, farmers should consider seeking mediation at an early stage to increase the chances of an agreed outcome with the lender that may allow the business to recover.
A farmer or creditor requests mediation. The farmer can request at any time, the creditor can only request mediation when the farmer is in default on debt. A farmer may not request mediation if there is an enforcement certificate in force in respect of the farm debt.
The request must be made in writing.
How it works
How farm debt mediation works | NZ Government (mpi.govt.nz)
Why
The Farm Debt Mediation Scheme creates a safe environment for farmers. It gives them a chance to talk constructively with creditors as they work through debt problems. There can be a significant power imbalance when farmers deal with creditors. Mediation creates a more level playing field. The scheme allows parties to explore options for turning things around. If it cannot save the farm business, it can allow farmers to make a dignified exit. Lenders view it positively as it provides a transparent process for working through debt issues.
How much will it cost?
Farmers cannot be required to pay more than $2,000.00 towards my costs – which means the lender will need to pay the balance. A lender must also pay its own costs and cannot add mediation costs on to the debt.
Farmers who are facing extreme hardship may apply for help from the Mediation Hardship Fund. This is accessed by application to MPI, determined case-by-case and MPI will pay direct on invoice from a service provider.
Mediation Hardship Fund for the Farm Debt Mediation Scheme | NZ Government (mpi.govt.nz)
Why me?
I have mediated several and achieved equity preserving, dignified and planned outcomes for the parties.
I have been a self-employed rural mediator for over 10 years, and trained, accredited and practicing since graduating with a GDipBS(DispRes) in 2011. Memberships include the New Zealand Institute of Primary Industry Management and AMINZ rural panels.
My experience involves farm debt mediation, contracting and sharemilking disputes, lease disputes, family and separation disputes.
My point of difference is that I have over 20 year’s hands on experience as a large herd sharemilker and dairy farm owner prior to his current role. I know what having debt means.
My mediation style is to avoid positions and negotiate in terms of parties underlying interests to encourage incremental bargaining towards compromise and settlement.
My farm consultancy practice includes budgeting and preparing cash flows for farmers, so I understand the effects of borrowing money for term debt, O/D limits, security, interest rate changes, break fees, asset management and creditor compromises.
The scheme is open to people involved in a primary production business. This includes any business that mainly produces unprocessed materials. This can be through agriculture, horticulture, aquaculture, or apiculture. It includes sharemilkers.
When
If the farm business is experiencing difficulties, farmers should consider seeking mediation at an early stage to increase the chances of an agreed outcome with the lender that may allow the business to recover.
A farmer or creditor requests mediation. The farmer can request at any time, the creditor can only request mediation when the farmer is in default on debt. A farmer may not request mediation if there is an enforcement certificate in force in respect of the farm debt.
The request must be made in writing.
How it works
How farm debt mediation works | NZ Government (mpi.govt.nz)
Why
The Farm Debt Mediation Scheme creates a safe environment for farmers. It gives them a chance to talk constructively with creditors as they work through debt problems. There can be a significant power imbalance when farmers deal with creditors. Mediation creates a more level playing field. The scheme allows parties to explore options for turning things around. If it cannot save the farm business, it can allow farmers to make a dignified exit. Lenders view it positively as it provides a transparent process for working through debt issues.
How much will it cost?
Farmers cannot be required to pay more than $2,000.00 towards my costs – which means the lender will need to pay the balance. A lender must also pay its own costs and cannot add mediation costs on to the debt.
Farmers who are facing extreme hardship may apply for help from the Mediation Hardship Fund. This is accessed by application to MPI, determined case-by-case and MPI will pay direct on invoice from a service provider.
Mediation Hardship Fund for the Farm Debt Mediation Scheme | NZ Government (mpi.govt.nz)
Why me?
I have mediated several and achieved equity preserving, dignified and planned outcomes for the parties.
I have been a self-employed rural mediator for over 10 years, and trained, accredited and practicing since graduating with a GDipBS(DispRes) in 2011. Memberships include the New Zealand Institute of Primary Industry Management and AMINZ rural panels.
My experience involves farm debt mediation, contracting and sharemilking disputes, lease disputes, family and separation disputes.
My point of difference is that I have over 20 year’s hands on experience as a large herd sharemilker and dairy farm owner prior to his current role. I know what having debt means.
My mediation style is to avoid positions and negotiate in terms of parties underlying interests to encourage incremental bargaining towards compromise and settlement.
My farm consultancy practice includes budgeting and preparing cash flows for farmers, so I understand the effects of borrowing money for term debt, O/D limits, security, interest rate changes, break fees, asset management and creditor compromises.
