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Farm Business Debt Mediation
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Farm Business Debt Mediation
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The Farm Business Debt Mediation program administered through QRIDA is a structured process. It provides an efficient and equitable way for farmers and mortgagees (lenders) to attempt to resolve matters relating to farm business debt.
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As of 1 July 2017, the Farm Business Debt Mediation Act 2017 (Qld) (the Act) replaced the voluntary mediation scheme that was part of the Queensland Farm Finance Strategy.
The purpose of the Act is to provide an efficient and equitable way for farmers and mortgagees to attempt to resolve matters relating to farm business debts.
Mediation is required before mortgagees can take possession of a property or other enforcement action under a farm mortgage.
Financial problems farmers encounter are managed and addressed if they are recognised at the earliest possible stage. It's important that farmers engage the mortgagee and other advisors or agencies to assist them including their accountant, a Rural Financial Counsellor, and Legal Aid Queensland.
If matters remain unresolved, mediation provides a structured negotiation process in which the mediator, as a neutral and independent person, can assist the farmer and the mortgagee with the aim to bring about an agreement. Mediation is confidential and usually cheaper and quicker than arbitration or litigation.
The key participants in the mediation process are:
- farmers
- mortgagees
- mediators
- advisors and agents.
QRIDA is responsible for administering the mediation process. All parties to mediation have a responsibility to complete all relevant notices and forms to allow mediation to occur. Guidelines, notices and forms are made available in a fillable PDF format on this website.
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Register of Mediators
Frequently asked questions
It is a structured process that provides an efficient and equitable way for farmers and mortgagees, participating in good faith, to attempt to resolve matters relating to farm business debts.
Please review the application criteria under section 11 of the Act.
The farmer should seek advice. This can be from their local rural financial counsellor, solicitor, accountant, Legal Aid Queensland or some other appropriately qualified person.
If the farmer wishes to enter into mediation, a response to the notice should be lodged in the form of a Notice S15 Request for Mediation Incorporating Nomination of Mediators and Request for Documents.
The farmer has 20 business days after the day an inviting a request for mediation notice is served on them. If the farmer does not ask for mediation within this time, the mortgagee may apply for an exemption certificate to proceed with enforcement action under the farm mortgage.
They must be submitted within 30 business days of the request.
Either the farmer or the mortgagee can initiate mediation by:
- the mortgagee serving a Notice S14 Inviting a Request for Mediation, along with a copy of the mediation information package to the farmer or
- the farmer giving a Notice S15 Request for Mediation Notice to the mortgagee whether or not they are in default. This request does not necessarily need to be in the approved form.
The parties to mediation are the mortgagee, the farmer and the mediator. Other participants are advisors, who may be your accountant, solicitor, Legal Aid Queensland, your local Rural Financial Counsellor or some other appropriately qualified person.
The farmer is responsible for nominating three (3) mediators in order of preference from the Register of Mediators.
Mediators are independent, third-party professionals accredited by QRIDA to assist the parties to mediation to negotiate their own solutions. You can view the full list of mediators on the Register of Mediators, located on the Farm Business Debt Mediation webpage.
Mediation meetings are to be conducted at a place and time that is reasonably convenient to the farmer.
Once a mediator has been agreed upon by both parties, it is the responsibility of the mortgagee to then ask the chosen mediator to arrange the mediation. The mediator will also arrange the time and location of the mediation and the coordination of mediation meetings.
There is no fixed timeframe for mediation. The process is flexible and may require multiple sessions. The mediator can offer a more precise estimate, as the timeline generally depends on the mutual agreement of all parties involved.
The cost usually includes the mediator’s fees, mediator’s out of pocket expenses such as travel, accommodation, phone and facsimile costs, together with any hire fee for the venue. The fee rate usually charged by the mediator is published on the Register of Mediators.
Each party to a mediation must pay -
- the party’s own costs for the mediation and
- half of the mediator’s fee and costs for the mediation.
It is subject to certain exemptions provided for in the Act. Confidentiality applies to matters discussed or agreed at mediation meetings including anything done for the purpose of arranging or following up matters discussed or agreed at mediation.
The farmer should first review their account balance/s. If any discrepancies arise, address the matter directly with the mortgagee. Should the issue remain unresolved, the matter can be escalated to QRIDA.
If mediation is unsuccessful after reasonable attempts to reach an agreement, the mortgagee may apply to QRIDA for an Exemption Certificate. If the application is approved, the farmer has the right to request a formal review of the decision.
The parties cannot disclose or rely upon anything said or done during a mediation meeting, or documents prepared for the mediation. Refer to section 38 of the Farm Business Debt Mediation Act 2017 (Qld).
10 business days.
A Heads of Agreement can be revoked by completing a Notice S29 Revoking Head of Agreement.
- On receipt of a Form 3 Application for Enforcement Action Suspension Certificate (to stop the mortgagee taking enforcement action) from a farmer, QRIDA will issue a Notice S41 Show Cause to Mortgagee. The mortgagee has 20 business days to make written representations to show why an enforcement action suspension certificate should not be issued.
- On receipt of written representations from the mortgagee, QRIDA will provide a copy to the farmer and then decide the application within 20 business days after the end of the show cause period.
- Once QRIDA decides the application, a Notice S43 Decision for Enforcement Action Suspension Certificate will be provided to both parties. The outcome is a decision to either approve or refuse the application for an Enforcement Action Suspension Certificate. No other directions or decisions are provided.
- Dependant on the outcome, either party is entitled to a review (an internal review) of the decision and must apply by completing a Form 7 Request for Internal Review of Original Decision within 20 business days from the day notice was given.
- Per Section 77(2) of the Farm Business Debt Mediation Act 2017 (Qld), the original decision does not take effect until the chief executive decides a review application or the end of the last day to apply for an internal review.
- On receipt of a Form 4 Application for Exemption Certificate (exempting the mortgagee from the obligation to offer mediation) from a mortgagee, QRIDA will issue a Notice S50 Show Cause to Farmer. The farmer has 20 business days to make written representations to show why an exemption certificate should not be issued.
- On receipt of written representations from the farmer, QRIDA will provide a copy to the mortgagee and then decide the application within 20 business days after the end of the show cause period.
- Once QRIDA decides the application, a Notice S52 Decision for Exemption Certificate will be provided to both parties. The outcome is a decision to either approve or refuse the application for an exemption certificate. No other directions or decisions are provided.
- Dependant on the outcome, either party is entitled to a review (an internal review) of the decision and must apply by completing a Form 7 Request for Internal Review of Original Decision within 20 business days from the day notice was given.
- Per Section 77(2) of the Farm Business Debt Mediation Act 2017 (Qld), the original decision does not take effect until the chief executive decides a review application or the end of the last day to apply for an internal review.
The farmer may make written representations to QRIDA within 20 business days from receipt of the notice.
It is advised that both the farmer and the mortgagee retain comprehensive records and evidence regarding the service of all notices, alongside copies of the correspondences exchanged.
Detailed information and documents are available through the following resources:
- Forms and templates: Visit the QRIDA forms and downloads portal.
- Program information: Review the Mediation Information Package (PDF, 227KB).
- Direct support: Email the Farm Business Debt Mediation team at contact_fbdm@qrida.qld.gov.au
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