AMINZ launches Farm Debt Mediation video series with MPI
AMINZ and the Ministry for Primary Industries (MPI) have partnered to develop a new Farm Debt Mediation video series aimed at farmers, creditors, and advisors.
There were some who doubted the need for it. But, since it came into force, the mediations have been coming through at an increasing rate.
Feedback from banks and farmers has been positive. For my part, I have had the privilege of mediating about $250 million worth of farm debt to settlements under the Act so far.
They are a different type of mediation to what we typically see in the commercial disputes world. For one thing, there usually is no dispute; the money is owed, the debt is in default, the bank is entitled to exercist its remedies.
But the stakes are still extremely high. There can be very large sums involved. The businesses are complex, and the issues they face are often multi-layered. To many farmers, their farms are at the heart of their identities. In this context, the primary focus of these mediations is, rightly, on workable solutions.
Farm debt mediation settlements take a variety of shapes. They can involve: terms for refinance, agreed sell-downs of some or all land or stock, the institution of business management plans with agreed milestones and third party input, on files that they have often found highly challenging.
These mediations can be tough. But they are immensely satisfying to play a part in. And we are blessed in New Zealand with some highly skilled farm debt mediators who can guide folk through the experience - including my colleagues.
I hope the doubts have now waned. I have already seen a quarter of a billion good reasons for this scheme, and then some.
Mark Kelly is a barrister and commercial mediator at Bankside Chambers.
