Yes. A farmer can initiate mediation with their creditor, including state and local government, by completing Form 3.

Click here to be directed to the 'forms' page.

No. The farmer does not have to be in default to request mediation with their creditor. Although a creditor may accept or refuse an offer to mediate. If the creditor refuses to mediate and the farmer is in default, then the farmer may apply for a prohibition certificate.

A prohibition certificate will prohibit a creditor from commencing enforcement action for up to six months or until the day on which the farmer and creditor later enter into mediation.

Farm debt mediation is a structured negotiation process where a neutral and independent mediator assists the farmer and the creditor to try to reach agreement about current and future debt arrangements.

The mediator's role is to facilitate the discussion and they will not provide advice on the matters in dispute. Mediation is a simple, voluntary and confidential process that is quick, accessible and affordable.

The SASBC will facilitate the location, date and mediator at an agreed date between farmer and creditor.

It is recommended that farmers seek assistance from their solicitor, accountant or some other appropriately qualified person. They can assist farmers to prepare for mediation, attend the mediation session with farmers and help with any actions that need to be undertaken after the mediation session.

Rural Business Support is also available to assist on freecall 1800 836 211. Rural Business Support provides a rural financial counselling service in South Australia and provides primary producers and small rural businesses that are experiencing hardship with free and impartial financial information, options, decision support and referral services.

The Small Business Commissioner has determined that the fee payable by each of the parties participating in mediation of a farm debt dispute under this Act may be $195.00 per party, per mediation day (or part of a mediation day), provided that the Commissioner may, at their entire discretion, partly or wholly waive the fee for any or all parties to the mediation.

An exemption certificate allows a creditor to commence recovery action as normal against a farmer.

An exemption certificate remains in place in respect of a farm mortgage for three years from the relevant date, which is determined in accordance with section 17 of the Act.

A creditor can apply for an exemption certificate to the Small Business Commissioner if all statutory requirements are met:

• the farmer is in default under the farm mortgage
• a prohibition certificate is not in force and
  • satisfactory mediation has taken place under the Act, or an alternative dispute resolution process, or
  • satisfactory mediation has not taken place, because the farmer has refused to participate, or because at least three months has elapsed since the creditor’s request and throughout that period, the creditor has attempted to participate in mediation in good faith, and no satisfactory mediation has taken place.

A prohibition certificate will prohibit a creditor from commencing enforcement action for up to six months or until the day on which the farmer and creditor later enter into mediation.

The prohibition certificate will be issued by the Small Business Commissioner if all the statutory requirements are met:

• the farmer is in default under the farm mortgage
• an exemption certificate is not in force; and
• the farmer has requested the creditor to mediate
• satisfactory mediation has not taken place, because the creditor has refused to enter into, or to continue with, mediation, or at least 3 months have elapsed since the farmer’s request and throughout that period, the farmer has attempted to participate in mediation in good faith, and no satisfactory mediation has taken place.

The Act allows a farmer to initiate mediation.

The farmer does not have to be in default to request mediation with their creditor.

The creditor may accept or refuse an offer to mediate.

If the creditor refuses to mediate and the farmer is in default, then the farmer may apply for a prohibition certificate. This will prohibit a creditor from commencing enforcement action for up to six months or until the day on which the farmer and creditor later enter into mediation.

Creditors are required to offer mediation to farmers before commencing debt recovery proceedings on farm mortgages in default and must write to the farmer advising that mediation is available, giving notice with a Form 1.

A farmer has 21 days from the date of the offer to mediate to respond. If the farmer does not respond, or refuses mediation, a creditor can commence recovery action as normal.

If the farmer agrees to mediation, they respond in writing to the creditor's offer on a Form 2.