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ARTICLE · 07 MARCH 2014

Farm debt mediation – how to make it successful

Holding Redlich
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Agreeing to mediate and attending the mediation well prepared and cognisant of your financial capacity is crucial.

AustraliaLitigation, Mediation & Arbitration
Kylie Hall
Kylie Hall
Howard Rapke
Howard Rapke
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The Farm Debt Mediation Act 2011 (Vic) (the Act) has been in operation for some two years and is in large part modelled on New South Wales legislation which has been operative since 1994. Since the commencement of the Act in Victoria, over 180 mediations have taken place with 95% of those mediations resulting in a settlement agreement between the parties.

With the exception of New South Wales, there have not been any similar legislative changes in any other Australian states. However, in Queensland in 2008 various rural groups and a number of banks (including the top four) executed a public agreement referred to as the Queensland Farm Finance Strategy and Farm Debt Mediation Scheme (the Scheme) which, similar to the Act, requires banks to initiate third party mediation prior to commencing enforcement procedures against farmers in default of loan facilities. Whilst there has been some government support for a nationally consistent approach to farm debt mediation, to

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