BANKS will be forced to offer mediation to farmers before they can foreclose on farming properties in Queensland from July 1.
Subscribe now for unlimited access to all our agricultural news
across the nation
or signup to continue reading
The Farm Business Debt Mediation Bill 2016, passed in Parliament on Tuesday, requires financial institutions to offer debt mediation to farmers who are in arrears.
Agriculture minister Bill Byrne said the Palaszczuk Government wanted to ensure farming families experiencing financial difficulty were treated fairly by financial institutions when they were faced with the daunting prospect of selling property assets to repay loans.
“The primary objective of this new legislation is to provide a process for the efficient and equitable resolution of farm debt matters,” Mr Byrne said.
“Mediation is a confidential process and an alternative to expensive and drawn-out legal processes.
“The legislation is not intrusive. It does not prevent financial institutions and producers from using informal negotiations to resolve their disputes.
“But if informal talks fail the lender will have to offer mediation before starting enforcement action.”
Farmers have an option to decline the offered mediation.
The Queensland Rural and Industry Development Authority (the new name of QRAA from July 1) will oversee the process and accredit mediators.
CLICK HERE to read the Debt Mediation Bill 2016.
