A detailed description of each form and its place in the process of farm debt mediation follows:
Form 1 is used by a creditor to advise a farmer that:
- the creditor intends to take enforcement action against the farmer
- the farmer is entitled to request mediation with the creditor
- mediation is low cost and organised by the Office of the Small Business Commissioner
- the farmer has 21 days from the date the notice was given to request mediation.
Along with Form 1 the creditor is required to also include:
- Form 2 to allow the farmer to request mediation
- Form 8 to allow the farmer to refuse mediation
- links to information about mediation at the SASBC
- the contact details for Rural Business Support which provides free Rural Financial Counselling.
Form 2 is used by a farmer to advise a creditor:
- Farmer is requesting mediation under the Farm Debt Mediation Act 2018 (SA) (the Act) and are aware they are in default as referred to in Form 1 from the creditor.
Form 2 is returned by the farmer to the creditor within 21 days from date that Form 1 was received.
If the farmer fails to respond within 21 days, the farmer will no longer be able to request mediation under the Act.
Form 3 is used by a farmer to:
- request mediation with a creditor whether they are in default or not.
Form 3 is sent by a farmer to a creditor as well as attaching Form 4.
If a creditor does not respond within 21 days, and the farmer is in default, the farmer will be entitled to apply to the SASBC for the issue of a 'prohibition certificate'.
A 'prohibition certificate' prevents a creditor from commencing debt recovery under the specified farm debt until six months after the date on which it was issued, unless the farmer and creditor enters into mediation in respect of the farm debt before that date.
Form 4 is used by the creditor to:
- agree to mediation with the farmer
- refuse to enter into mediation with the farmer.
Form 4 must be returned to the farmer within 21 days.
Where both parties wish to participate in mediation, the creditor must:
- notify the SASBC within 10 days using Form 5
- provide copies of Form 1, Form 2 or 3 and Form 4
Completed forms are to be sent to SASBC via email email@example.com or post GPO Box 1264, Adelaide SA 5001.
Form 6 can be completed by a farmer if:
- Form 3 has not been returned within 21 days by the creditor and the farmer is in default.
A 'prohibition certificate; prevents a creditor from commencing debt recovery under the specified farm debt until six months after the date on which it was issued, unless the farmer and creditor enters into mediation in respect of the farm debt before that date.
Form 7 is used by the creditor if they would like to apply for an exemption certificate if:
- Form 1 is sent from the creditor and after 21 days no response has been received from the farmer
Form 8 is used by the farmer if:
- a farmer chooses not to enter into mediation
- a farmer chooses not to continue with mediation
Form 9 is used by a creditor if:
- creditor chooses not to enter into meditation
- a creditor chooses not to continue with mediation
Note: If the creditor chooses not to mediate, the farmer may apply to the Small Business Commissioner for a prohibition certificate, which lasts for six months from the relevant date. If the prohibition certificate is issued, the creditor cannot proceed with enforcement action under the farm debt while the prohibition certificate remains in force.
Download the suite of forms here (Form 1 - Form 9).
Form 1 - To be completed by the creditor - Notice to farmer - Notice of availability of mediation
Form 2 - To be completed by the farmer - Notice to creditor - Farmer response to creditors form 1 - Creditors notice of availability of Farm Debt Mediation
Form 3 - To be completed by the farmer - Notice to creditor - Farmer-initiated mediation request
Form 4 - To be completed by the creditor - Notice to farmer - Creditors agreement or refusal to enter into mediation
Form 5 - To be completed by the creditor - Notice to the Small Business Commissioner - Notice that mediation is required
Form 6 - To be completed by the farmer - Application to the Commissioner for prohibition certificate
Form 7 - To be completed by the creditor - Application to the Commissioner for exemption certificate
Form 8 - To be completed by the farmer - Farmer decision not to enter into or proceed with mediation
Form 9 - To be completed by the creditor - Creditor decision not to enter into or proceed with mediation