states, Minnesota and Iowa, require mandatory mediation, 

 which is fundamentally different from the programs in a 

 majority of states. Under mandatory mediation, no 

 creditor may initiate a proceeding to enforce a debt on 

 agricultural property until the farmer has been given an 

 opportunity to mediate. During the mediation period, 

 the farmer and his creditor are required to mediate in 

 good faith, and the creditor's remedies for enforcement 

 of the debt are suspended, resulting in a moratorium 

 forestalling legal action against the farmer. 



In Minnesota, mandatory mediation is being 

 challenged in court. The Farm Credit Services of St. 

 Paul filed a lawsuit challenging the constitutionality 

 of Minnesota's new mandatory mediation law. The 

 organization argues that mandatory mediation will 

 unjustly cost its members $50 million in the first year 

 due to delays caused by mediation. -^ 



Similar Policies and Programs 



The following is a description of programs 

 developed in several states to provide financial 

 counseling and other assistance to aid financially 



troubled farmers and ranchers: 



.4 



Iowa 



Iowa has established a program through the Iowa 

 Cooperative Extension Service to offer financial 

 management and counseling services to individual farm 

 operators. Approximately 45% of the Cooperative 

 Extension Service's program and resources are directed 

 to aid financially troubled farmers. 



15 



