Farm Debt Mediation PDF Print

The Office of the Victorian Small Business Commissioner will play a key role under the new Farm Debt Mediation Act 2011. The legislation seeks to resolve farm debt disputes efficiently and equitably by requiring a creditor to provide a farmer with the option to mediate before taking possession of property or other enforcement action under a farm mortgage.

There are two types of mediation available under the Act. The first is creditor initiated mediation, which results from a creditor issuing a notice under section 8 of the Farm Debt Mediation Act 2011. The second is farmer initiated mediation, where a farmer takes the initiative to request mediation with their creditor.

Under the Act, the VSBC will provide preliminary assistance to farmers and creditors who have agreed to mediate their disputes. The VSBC will also arrange the mediation of farm debt disputes between farmers and creditors.

The fee for mediation is $195 for each party for each mediation session.

The legislation came into effect on 1 December 2011.

The Farm Debt Mediation Act 2011 can be downloaded here and all details relating to the process for mediation under the Act can be found on the Department of Primary Industries (DPI) website by clicking here.

The farm debt mediation scheme is administered by the DPI and further information can be sought from the Farm Debt Mediation Officer on 136 186. For further information about the mediation process, the VSBC can be contacted on (03) 9651 9316.