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National Farmers Union asks USDA to use and expand mediation program

The National Farmers Union is asking USDA to use and expand a program designed to help financially distressed farmers.

President Roger Johnson says the Certified Agricultural Mediation program was created in the late 1980’s.

“It provides for the availability of third-party disinterested farm financial experts who sit down with farmers and lenders and try to work out scenarios that involve making adjustments.”

USDA is projecting a 36 percent decrease in net farm income and Johnson says NFU is hearing from farmers that are having trouble paying off debts.

“What often happens is there’s a lack of communication that can occur (if the farmer thinks they can’t make payments), so they may just avoid sitting down and talking through these things, hoping that something is going to change.”

He says bringing in a third-party intermediary frequently helps to bring a resolution that works for the farmer and lender.

Johnson tells Brownfield the assistance is typically provided through a state agency that receives federal dollars to help underwrite some of the costs.

“They then employ or contract with mediators who are frequently financial experts.  Different states run their programs a bit differently, but these financial experts get assigned based on farmers or lenders who are requesting the service.”

NFU in a letter encouraged USDA Ag Secretary Tom Vilsack to utilize and enhance the mediation program.