the state would establish a toll-free telephone line to 

 receive requests for assistance, counseling, and other 

 services. 



This option would be intended as an emergency 

 measure, and services would be provided only on a 

 temporary basis while Montana completes the transition 

 to a more stable farm economy. 



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Discussion 



This option would address the needs of many farmers 

 and ranchers who are experiencing serious financial 

 problems. According to the Montana Department of 

 Agriculture, 11% of Montana's farmers and ranchers are 

 in need of some type of financial and emotional 

 counseling, and an additional 33% require assistance in 

 obtaining the restructuring of farm debts. ■*• These 

 persons could potentially be helped through a program of 

 counseling, debt mediation, and related services. 



A key component of this option is debt mediation. 

 Debt mediation is a process by which a farmer who is in 

 danger of foreclosure can attempt to work out credit 

 problems with his lenders by obtaining the assistance of 

 an impartial mediator. The mediator would act as a 

 facilitator to a mediation agreement that might result 

 in an extension in the terms of credit, a reduction in 

 the farmer's payment to the lender, or some other 

 settlement that would allow the farmer to continue in 

 agricultural production or to keep his farm residence. 



A number of states have initiated debt mediation 

 programs to assist farmers. However, differences exist 

 in how these states provide mediation services. Two 



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