In 1986, the Farmer-Lender Mediation Act was passed in response to a farm credit crisis. The act established a 90-day standard mediation period, requiring a bank or other creditor to offer mediation before enforcing a debt against agricultural property such as land, livestock, or crops.

Earlier this session, the Senate passed a bill modifying the Farmer-Lender Mediation Act provision by adding a temporary extension as part of the COVID-19 response act (HF4456). HF 4456 extended the mediation from 90 days to 150 days.

Today the Senate passed HF 4599 in response to continued effects of COVID-19 on the agricultural community. The bill extends the mediation deadline from 150 days until December 1, 2020, whichever is later.

“This bill is for all our farmers facing incredible financial hardships in the wake of this pandemic,” said Senator Mike Goggin (R-Red Wing). “Expanding this protection is vital for their survival as the agricultural economy takes hit after hit. Farmers will have some breathing room to recover and overcome this hurdle ready for another season.”