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Protecting farmers from foreclosures

Protecting farmers from foreclosures

Minnesota Gov. Tim Walz approved changes to the Farmer-Lender Mediation Act

By Diego Flammini
Staff Writer
Farms.com

A recently amended bill will protect Minnesota farmers for the rest of the year as producers navigate challenges brought on by the COVID-19 pandemic.

On Monday, Governor Tim Walz passed changes to the Farmer-Lender Mediation Act to protect farmers from foreclosures.

Governor Rudy Perpich passed the original law in 1986 in response to a state farm crisis that caused net farm income to fall by almost 60 per cent during the 1980s.

The legislation outlined that any creditor foreclosing on ag debt of US$15,000 or more must provide the debtor with a legal notice of their right to a neutral mediator and provide 90 days for the parties to reach an agreement.

The amendments Gov. Walz approved earlier this week extend the mediation period by 150 days or until Dec. 1, whichever is later.

The changes apply to producers currently in mediation and those who apply for mediation before Aug. 31, 2020.

Last year, 30 Minnesota farmers filed for Chapter 12 bankruptcy to restructure finances and avoid foreclosures.

And as producers try to manage the challenges related to COVID-19, providing them with more time for mediation is an important support, said Rep. Todd Lippert, the bill’s sponsor.

“Everything in agriculture has been thrown up in the air and nothing has landed yet,” he said in the state legislature on May 13. “We want to provide time for farmers to plant and harvest, time for livestock markets to stabilize, for milk prices to stabilize and for federal support for farmers to become clearer.

“We don’t want farmers and lenders to be rushed into farm-ending decisions in such a volatile ag marketplace.”

Farms.com has reached out to members of the Minnesota ag community for comment.




Trending Video

US “Flash Drought” Worst in 133-160 Years + Disease taking a Bite out of US 2025 Corn/Soybean Crops

Video: US “Flash Drought” Worst in 133-160 Years + Disease taking a Bite out of US 2025 Corn/Soybean Crops


A dry August and a “flash drought” in the ECB (Eastern Corn Belt) the driest top 10 to 15 years in 150 to 160 years (Ohio the driest in 133 years) plus disease is taking a bite out of the 2025 U.S. corn and soybean crops.
It's going to be an early harvest. This could be the start of the 89-year drought cycle that may have been delayed until 2026 as La Nina maybe returning.
The USDA September crop report is all about record corn ears and record soybean counts but the October USDA crop report will be about pod and ear weights.
Stats Canada reported higher forecasts for the 2025 Canadian Prairies all wheat and canola crops vs. last year based on satellite imagery but are they overestimating production?
The 2025 Great ON Yield Tour and Quebec crop tours are projecting corn and soybean crops below the 10-year average.
China's Vice Commerce Ministry Li Chenggang visits Washington this week as we continue to connect the dots is a positive sign towards a China/U.S. trade deal. But will U.S. farmers have a winter without China as they buy more soybeans from Uruguay/Argentina? U.S. Northern Plain soybean farmers are seeing red with flat prices at $8.97/bu!
U.S. corn exports on record pace up 99% vs. last year.
Fund short covering continues in corn futures bottom is in!