The Tasmanian Government has committed to introducing a legislated farm debt mediation scheme in Tasmania that will help farmers in financial stress deal with their creditors.
Public consultation on this initiative concluded in February 2021.
The Consultation Paper can be viewed here: Proposed Legislated Farm Debt Mediation Consultation Paper
Five submissions were received in response. Those submissions can be viewed here:
What will the Farm Debt Mediation Scheme include?
The Farm Debt Mediation scheme will provide:
- a structured negotiation process with a neutral and independent mediator to help farmers and lenders communicate effectively and come to a formal agreement about the management of farm debts
- an efficient, inexpensive and fair process for resolving debt problems early, as an alternative to a drawn-out, expensive and stressful court process for farmers and lenders
- assistance to address power imbalances that may exist between stressed farm businesses and their creditors
- resources to farmers to help them negotiate their own protections when dealing with lenders
- the statutory right to participate in mediation before creditors can take enforcement action