Information for farmers
Mediation provides a structured negotiation process where the mediator, as a neutral and independent person, can assist the farmer and mortgagee to bring about an agreement on matters relating to the farm business debt.
Important steps towards mediation
Mediation is an impartial and independent process that helps farmers and mortgagees attempt to come to an equitable resolution relating to farm business debts.
As a neutral and independent person, the mediator aims to help the farmer and mortgagee come to an agreement to prevent a mortgagee foreclosing on a farm business debt.
In most matters, the farmer will receive a Notice S14 Inviting a Request for Mediation (PDF, 157KB) from the mortgagee, accompanied by a Notice S15 Request for Mediation Incorporating Nomination of Mediators and Request for Documents (PDF, 149KB) and a Mediation Information Package (PDF, 294KB). The farmer may request mediation to discuss the farm debt or alternatively elect to refuse mediation.
Watch this video to find out the steps the farmer should take if they receive a S14 Notice from their lender/mortgagee
The following steps outline the process and notices undertaken by the farmer when the mortgagee initiates mediation.
- The mortgagee serves the farmer with a Notice S14 Inviting a Request for Mediation (PDF, 157KB) along with a Mediation Information Package (PDF, 294KB) and provides a copy of the Notice S14 Inviting a Request for Mediation (PDF, 157KB) to QRIDA.
- The farmer should review the Notice S14 Inviting a Request for Mediation (PDF, 157KB) and supporting information carefully and seek advice.
- The farmer then responds within 20 business days by giving a Notice S15 Request for Mediation Incorporating Nomination of Mediators and Request for Documents (PDF, 149KB) to the mortgagee that also includes their nomination of three mediators in preferred order and a request for copies of documents. Alternatively, the farmer has the right to decline mediation.
- The mortgagee can accept the request for mediation by giving a Notice S16 Agreement or Refusal to Mediate (PDF, 122KB) within 15 business days. Included in the Notice S16 Agreement or Refusal to Mediate (PDF, 122KB) is a requirement for the farmer to give up-to-date documents to the mortgagee within 30 business days.
- The parties should agree on a mediator who arranges for the completion of a Form 8 Mediator Appointment (PDF, 143KB) (not necessarily the form provided by QRIDA).
- The mediator also reviews the overall matter and may suggest a pre-mediation conference.
- The mediator facilitates a pre-mediation conference and finalises arrangements for mediation.
- Mediation will be conducted on an agreed day, time and venue that's reasonably convenient to the farmer. It will be conducted efficiently and with as little formality and technicality as possible.
If an agreement is reached, a Form 1 Heads of Agreement (PDF, 129KB) is prepared or supervised by the mediator and signed by both parties with a Form 2 Summary of Mediation completed and signed by all parties and forwarded to QRIDA.
Obligations
- The farmer should get the right advice to ensure they are well supported throughout the mediation process.
- The farmer is entitled to more than one advisor.
- Be prepared and participate in mediation in good faith. Refer to the Good Faith Information Sheet (PDF, 922KB).
Alternative options
- The farmer can initiate mediation with the mortgagee. Key steps are detailed in the Mediation Information Package (PDF, 294KB).
- The farmer has the responsibility to notify QRIDA if there is a change of mediator using the Notice S18B Change of Mediator (PDF, 128KB).
- The farmer can discontinue mediation by giving a Notice S32 Discontinuing Mediation (PDF, 182KB).
- The farmer can decline mediation by giving a Notice S53 Declining Mediation (PDF, 167KB).
- The farmer can revoke a heads of agreement by giving a Notice S29 Revoking Heads of Agreement (PDF, 191KB).
- The farmer can make an application for Form 3 Enforcement Action Suspension Certificate (PDF, 143KB) if the mortgagee has failed to mediate or mediate in good faith.
Related information
Mediation Information pack (PDF, 352 KB) Good Faith Information Sheet (PDF, 922KB) Guidelines for Conducting Mediation (PDF, 270 KB) Contact North Queensland Rural Financial Counsellors Contact Southern Queensland Rural Financial Counsellors Legal Aid Queensland Farm Business Debt Mediation Act 2017 (Qld) Farm Business Debt Mediation Regulation 2017Register of Mediators
More information
Visit Farm Business Debt Mediation for more information including frequently asked questions.
Mediation tips
If the farmer undergoes Farm Business Debt Mediation, they should keep the following tips in mind to help them prepare and improve their chances of the best possible outcome.
Seek support as soon as possible: If the farmer is facing financial difficulties, it’s important they seek support and advice early to assess their options. The Rural Financial Counselling Service and Legal Aid Queensland are great resources, but the farmer's accountant or solicitor can also assist.
Choose to have an advisor present: Farmers are entitled to have one or more advisors present in mediation meetings, in addition to helping them prepare. Farmers should consider bringing a professional who they trust, who knows their business and situation, and can help them understand the process if necessary. This could be their solicitor, accountant or business consultant. The mediator will also ensure the farmer is well supported.
Get familiar with the relevant documentation: The farmer should take the time to get familiar with documents containing their financial position and other details that may be relevant at mediation. This could include a current and realistic market valuation of their property, a list of plant and equipment, cashflow budgets, livestock or cropping programs and copies of the last three years' taxation figures.
Consider the other party: The farmer should ask themselves what they know about the other party. What internal and external constraints is the other party operating under, and what options are likely to be acceptable to them? Understanding other perspectives will help the farmer prepare.
Prepare for a range of outcomes: Farm Business Debt Mediation aims to find an equitable resolution for both farmer and mortgagee, so the farmer should be prepared to compromise. A good way for the farmer to prepare is to consider as many outcomes as possible, determine which are practical and could satisfy their needs, and develop arguments for each.