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Benefits of Mediation
Mediation provides a confidential
forum to discuss complex issues.
Mediators are neutral they do not
make decisions they help the parties find solutions.
Mediation builds strong working
relationships with producers, their lenders and government agencies they work
with.
Decisions are made rapidly by
involved parties streamlining government involvement.
Mediation supports stability and
diversity in rural economies.
Growth
Since the program was reauthorized in 2000, seven
more states have a USDA Certified State Agricultural Mediation Program, bringing
the total to 32 states, an increase of nearly 30 percent.
To maintain a successful program, funding must keep
pace with the programs growth.
This program is growing for a good reasonit
works. The number of mediation clients has increased from approximately
3,300 in Fiscal Year 2001 to more than 4,600 in Fiscal Year 2004.
Appropriations from Congress were $3,974,000 in
Fiscal Year 2004.
Key Components and Issues
Neutrality. It is critical that mediation programs
are neutral in practice as well as in perception. Producers must have confidence
that the program settles disputes in a fair manner.
Confidentiality. Confidentiality is vital to the
integrity and success of the mediation process. Without its absolute guarantee,
participants may be apprehensive, or unwilling, to discuss personal financial
and emotional matters.
Autonomy. USDA certified mediation is a state
and federal partnership. State agricultural mediation programs are not
federal programs. To address the differences
in state needs, priorities and expectations, state program autonomy is
essential and was in fact, intended by Congress.
Background
In 1988 Congress authorized USDA to help develop and
participate in Certified State Farm Mediation Programs under the USDA Farm Loan
Mediation Program part of the Agricultural Credit Act of 1987.
In 1992 Congress increased federal matching funds to
70 percent in support of state programs.
In 1994 Congress expanded the program under the USDA
Reorganization Act, authorizing USDA to offer
mediation as an option as part of the informal appeals process with respect to
adverse decisions on USDA farm program issues.
Mediation programs assist agricultural producers,
their creditors and various USDA agencies to address loan problems, USDA
adverse decisions and other disputes. The programs do this in a confidential
and non-adversarial setting outside the traditional legal process of
foreclosure, bankruptcy, appeals and litigation.
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