Farm Debt Mediation Process
The Farm Debt Mediation Act 2019 outlines the mediation process for farmers facing debt-related issues. It allows farmers and creditors to request mediation, appoint a mediator from a panel, enter into a procedure agreement, and proceed with mediation. There is no prescribed time limit for the mediation, but it must be completed within 60 working days of the request, unless parties agree otherwise. The Act also includes provisions for a Mediation Agreement and a cool-off period for farmers to cancel the agreement. At the end of the process, the mediator must submit a report to the chief executive detailing the mediation summary and related information.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
MEDIATION UNDER THE FARM DEBT MEDIATION ACT 2019 MEDIATION UNDER THE FARM DEBT MEDIATION ACT 2019 RITANZ RITANZ 11 June 2021 11 June 2021 OVERVIEW OF THE PROCESS OVERVIEW OF THE PROCESS Mark Kelly Mark Kelly Barrister & Commercial Mediator Barrister & Commercial Mediator
Process Farmer can request a FDMA mediation at any time (unless there is an enforcement certificate in place) s15. Farm debt does not need to be in default if farmer requesting. Mediation request A creditor can request a FDMA mediation at any time after the farmer is in default of a farm debt (unless a prohibition certificate in place) s16. Mediation requests must be in writing, and replied to within 20 days - ss15-17.
Process - The farmer must nominate a panel of three authorised mediators. Appointment of the Mediator The creditor must accept one of those mediators. s21
Once mediator is appointed, parties and mediator must enter into a procedure agreement (essentially an agreement to mediate covers off procedural matters). Process - Failure to: Procedure Agreement enter into a procedure agreement within a reasonable time; or comply with the provisions of a procedure agreement without a good reason, s22 may be treated as evidence that a party has not participated in the mediation process in good faith.
Process No prescribed time limit for the mediation itself. Duration of the Mediation Parties must proceed to mediation as soon as reasonably practicable after a procedure agreement entered into. Mediation process may not continue beyond 60 working days after the date of a mediation request, except with agreement of the parties. s25
Process The FDM Act calls a settlement agreement a Mediation Agreement . Mediation Agreements There is a cool off regime. Farmer can cancel a mediation agreement by giving written notice of the cancellation to the creditor within 10 working days after mediation agreement signed. ss29-33
Process At the end of the mediation, mediator must give a report to the chief executive. Report must include Mediation Report Summary of the mediation process; Names of the parties to the farm debt; and Any other information specified in published requirements. s27 Mediator must give the parties a copy of the mediation report. The contents of a mediation report may be used as evidence that a party has not participated in good faith.
A creditor cannot take enforcement action arising from a security interest in farm property without an enforcement certificate s11 (1). Carrot/stick Under s34, a creditor can only get an enforcement certificate if: Enforcement Certificates The farmer has declined to mediate; or The creditor participated in a mediation in good faith. An enforcement certificate lasts for three years s42.
Under s35, a farmer who owes a farm debt to a creditor can obtain a prohibition certificate if: Carrot/stick The creditor declined to mediate; or The creditor did not participate in the mediation process in good faith. Prohibition Certificates A creditor cannot take enforcement action if there is a prohibition certificate in force s11 (2). A prohibition certificate lasts for six months s42.
