After the Agricultural Finance Forum held on 23 September 2014, the Minister for Agriculture, and now Deputy Prime Minister, the Hon. Barnaby Joyce MP, established a working group to investigate options for a nationally consistent approach to FDM
The discussion group included representatives from the National Farmers' Federation, the Rural Financial Counselling Service, the Australian Bankers’ Association, the banking and finance sectors, state government agriculture departments and other rural stakeholders.
The Minister has considered an options paper prepared by the FDM Discussion Group and is continuing to work with the state/territory governments on possible ways forward.
What is farm debt mediation?
Farm debt mediation is a method of facilitating discussions between a farmer and their bank so that they can better negotiate their financial position. Feedback from the farm and banking sectors shows that mediation can deliver better outcomes for all parties.
Why do we need a national approach?
The development of a nationally consistent approach to FDM would help give farmers the opportunity for mediation when they are faced with significant debt issues and give farmers and their bankers a simpler, more consistent system, regardless of where they live and do business.