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Farm Debt Mediation Process: Creditor Initiated

Creditors are now required to offer mediation to farmers before commencing debt recovery proceedings on farm mortgages. The typical process when the creditor initiates mediation with a farmer under the Farm Debt Mediation scheme is outlined here.

1. Creditor issues farmer with notice of intention to take enforcement action over mortgage, together with option of mediation under the Act (Form 1).
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2. Farmer responds within 21 days accepting creditor’s offer to mediate (Form 2).
↓		 OR Farmer fails to respond to offer to mediate within 21 days – enforcement action can proceed as normal.
3. Creditor notifies DPI that mediation is required (Form 3 and copies of forms 1 & 2).
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4. DPI opens case and provides details to OSBC.
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5. OSBC arranges mediation at mutually acceptable time and place.
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6. Pre-mediation assistance arranged and conducted by OSBC (usually by telephone hook-up).
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7. Mediation conducted on agreed day at agreed venue.
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8. Creditor applies to OSBC for certificate of exemption from provisions of the Act (Form 4).
↓		 OR Creditor ceases enforcement action as a result of outcomes from mediation.

9. OSBC advises farmer of application and of farmer’s right to lodge a submission regarding issue of exemption certificate.
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10. OSBC adjudges that creditor has mediated satisfactorily, drawing on mediator’s summary.
↓		 OR OSBC adjudges that creditor has not mediated satisfactorily. Option of issuing certificate prohibiting creditor from taking recovery action for 6 months (upon farmer’s request).
Go to step 1.
11. OSBC issues certificate to creditor and advises farmer of the issue of the certificate.
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12. OSBC informs DPI that the process is finished.  

 

Farm Debt Mediation Process: Farmer Initiated