New Laws give greater security to Farm Businesses
Wednesday, 30 November 2011
The Victorian Government's Farm Debt Mediation legislation commences 1 December 2011. The scheme makes it compulsory for creditors to offer mediation to farmers before commencing debt recovery proceedings. The mediations will be conducted by the Office of the Victorian Small Business Commissioner.
The new laws provide farmers with the security of knowing that, in the event that they are struggling to service their debts, banks and other creditors cannot simply walk in and take over their property. The scheme will require creditors to offer farmers an opportunity to sit down on equitable terms and try to negotiate an agreed outcome with the help of an experienced and impartial mediator.
A farmer has 21 days to respond to an offer to mediate, otherwise the creditor can commence action as normal.
A similar scheme has been operating in New South Wales since 1994 and has seen mediation produce a settlement between farmers and their banks in more than 70 per cent of cases.
For more information contact the Department of Primary Industries on 136 186 or visit www.dpi.vic.gov.au/mediation.
