Mediation is not arbitration or a court of law. It is a process which focuses on developing alternatives for resolving disputes.
The mediator does not decide the issues for the parties but encourages them to reach mutually agreeable solutions.
Effectiveness Of The Mediation Program
The Nebraska Farm Mediation Program has been very effective in providing borrowers and
creditors an alternative means of resolving their financial disputes without litigation or appeals.
Historically, over 75 percent of those cases which go through a mediation session are able to
reach some sort of agreement. Additionally, many cases were resolved through the negotiation
between the parties outside of a formal mediation session. Often, having one party request
mediation is enough to get the parties communicating again so they can work out their own
solution to the dispute.
What Information Is Needed For Mediation?
For the mediation process to be successful, all parties must be aware of their current situation and
the options available to resolve their differences. All parties should bring to the mediation
whatever information they feel would be necessary to support their interests.
Who May Request Mediation?
Either farm borrowers, their creditors, producers, or the federal agency may request mediation. If
you have been notified of mediation as part of an adverse decision from a federal agency, they
have already agreed to participate. If the producer agrees to participate, they will be contacted to
establish a time and place to conduct the mediation session.
What Happens If A Solution Is Reached?
If a solution is reached during mediation, a tentative agreement is prepared. All parties will sign
the agreement and should receive a copy. No agreement becomes final until everyone has had
the opportunity to have the document reviewed. The final agreement may be enforced as a legal
contract between the parties.
Is There A Fee?
Each party participating in mediation will be charged $20 per hour for the time spent in the
mediation session. The fee has been set to cover a portion of the cost associated with the
program and is not intended to exclude anyone from the mediation process. In cases of extreme
financial hardship, the fee may be waived in whole or in part.
How Long Will The Mediation Process Take?
The program has been designed for quick resolution of disputes. The initial mediation session
will be conducted within 40 days of receiving a mediation request. The entire process cannot
extend for more than 60 days without consent of all parties.
When Can I Request Farm Mediation?
Farm mediation can be requested anytime a producer feels a need may exist to resolve a dispute.
You will be notified of your right to mediation whenever an adverse decision has been made
against you by a USDA agency. It is not necessary, however, that an adverse decision be made
prior to you requesting mediation. In fact, mediation may be more successful if requested earlier
while more options are still available.
Why Should I Participate In Mediation?
Mediation offers several advantages over other remedies in resolving disputes. The
process:
Participation in mediation does not constitute a waiver of any legal rights. If no solution is reached, the parties are free to proceed with the appeal or other legal remedies.
Mediation Services
Mediation involves much more than just the session itself. While the overall goal of the program
is to get the parties to the table to negotiate an agreement, that is just the last step to the process.
Before that can happen, it is essential that all the parties are prepared for the process. The
Department offers many services as part of the mediation program to insure that the parties find
the mediation process successful.
Mediation Clinics
Mediation clinics are held monthly in Norfolk, Beatrice, Grand Island, Ainsworth, Alliance,
Lexington and North Platte. These educational meetings provide information for producers on
farm finances; the laws, regulations and policies governing FSA; debt restructuring and other
legal options; and how the mediation program fits into this process. The clinics are successful in
providing this needed information to producers and in acquainting them with mediation. Clinic
staff are available to answer any specific legal, financial, tax, or mediation question in a
confidential setting. To register for a clinic, call 1-800-464-0258.
Financial Counseling
Borrowers who apply for mediation are offered an individual financial analysis of their current
situation. One of our financial counselors will come to your place and help you develop, among
other things, a cash flow, a balance sheet, and a five year trend to help analyze where you are,
how you got there, and the options you now have available.
Materials
The Department has prepared a 70 page booklet entitled, "Farm Mediation and Debt
Restructuring in Nebraska, A Guide for Farmers and Ranchers." It is available to anyone
requesting a copy and is sent automatically to anyone requesting mediation. The Guide gives a
good overview of the process involved in negotiating a restructuring agreement with the Farm
Service Agency, Farm Credit Services, and commercial lenders. It also provides an overview of
bankruptcy, tax consequences of restructuring, and mediation.
The Department of Agriculture has also produced a 20-minute video which explains the mediation process by going through a mock mediation. It is sent to requesting parties prior to the mediation and is helpful for those contemplating using mediation as well as those already committed, but unsure of what to expect. Getting to see the process is a lot more meaningful to them than just having an explanation.
Resources
The Department also maintains an up-to-date listing of other services that are available in
Nebraska. They include the Farm Hotline, Legal Services, Food Pantries, Community Action
Agencies, Farm Programs, and Mental Health Counseling. This listing is available upon request.
Who Do I Contact?
The Nebraska Farm Mediation Program is administered by the Nebraska Department of
Agriculture.
The Mediator - 2006
Fall Edition