Farmers and creditors
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Farm debt mediation
Under the Farm Debt Mediation Act 2011 (the Act), farmers and creditors can access mediation for the efficient and fair resolution of farm debt disputes. At mediation, an impartial and experienced mediator helps the farmer and creditor to negotiate and reach agreement about current and future farm debt arrangements, without the need for court.
Farm debt mediation is voluntary, confidential, quick and low-cost. It is compulsory for banks and other creditors to offer mediation to farmers before starting debt recovery on farm mortgages.
How we can help
The Victorian Small Business Commission offers farmers and creditors early help, which includes giving both parties guidance on their rights and obligations in relation to farm debt mediation, giving farmers information on available supports, appointing mediators and arranging mediation sessions.
Changes to the Farm Debt Mediation Act 2011
A number of significant changes to the Act were made to strengthen farmers’ rights to farm debt mediation, streamline the process and align aspects of the legislation with other states. These changes came into effect on 31 October 2022.
For more information, including how to initiate mediation:
- see our farm debt mediation process, forms and FAQs
- access support and information for farmers and information for creditors
- contact us.