Senate committee advances two bills to shore up farmer‑lender mediation as mediations surge

The Senate Committee on Agriculture, Veterans, Broadband and Rural Development on Feb. 18 moved two related bills to help farmers facing debt: Senate File 3583 would extend the Farmer‑Lender Mediation Act’s sunset by five years, and Senate File 3584 would add a one‑time $150,000 appropriation to hire an additional staff person to manage rising caseloads.

Sponsor and intent: Chair Senator Putnam introduced both measures, saying mediation “saves farms” by giving farmers and lenders a 90‑day facilitated process to renegotiate debt and reach mutually acceptable solutions. Under current Minnesota practice, a creditor seeking to enforce a debt of at least $15,000 (or actions covering 60 acres) must offer the option of mediation; if the farmer requests mediation within 14 days the creditor pauses enforcement and the process begins.

Evidence of need: Program representatives told the committee requests for mediation have increased markedly. Mary Nell Preisler, identified in the hearing packet as program director for the Farmer‑Lender Mediation Program at the University of Minnesota Extension, said the program saw a 28% increase in requests over the prior year and recorded 694 new mediation notices between Oct. 1 and Jan. 30; she estimated about 757 cases were active in some stage of the program during the recent months.

Preisler described how the program operates with a small permanent staff (the equivalent of roughly five full‑time positions) and several part‑time mediators and local mediators around the state. She said mediations typically involve multiple advisors — tax, legal, lender and advocate representatives — and that successful mediations both preserve farms and reduce the need for court proceedings.

Stakeholder support: Testimony from Stu Lohrey of the Minnesota Farmers Union and Hunter Peterson of the Minnesota Farm Bureau backed extending the statute and increasing staff capacity. They said mediation preserves farms and families and helps manage the state’s current low farm‑income environment.

Agency perspective: Tom Peterson, commissioner of the Minnesota Department of Agriculture, urged support for the bills and noted that farm advocates in his department often help farmers navigate mediation early. He warned the committee that certain commodity sectors (sugar beets were cited) face acute losses and that bankers have been calling the department with concerns about loan stress.

Committee action: Senator Putnam moved SF 3583 (the sunset extension) and the committee passed the bill by voice vote; the chair announced it would be referred to the Judiciary Committee. For SF 3584 the committee adopted Senator Holmstrom’s A1 amendment to make the $150,000 appropriation explicitly one‑time and then passed the bill, as amended, to the Higher Education Committee.

Votes at a glance: - SF 3583 (extend Farmer‑Lender Mediation Act sunset five years): moved by Senator Putnam; committee voice vote recorded as 'Aye' and chair announced passage and referral to Judiciary. (Motion: "that senate file 3583 be recommended to pass and refer to the committee on judiciary.") - SF 3584 (one‑time $150,000 appropriation for additional program staff): moved by Senator Putnam, amended by Holmstrom’s A1 (one‑time appropriation), then passed by voice vote and referred to Higher Education. (Motion: "that senate file 3584 be recommended to pass and refer to the committee on higher education, as amended.")

What’s next: Both bills move to their respective committees for further consideration. Program staff told senators they will continue to provide data to support capacity requests and that the appropriation, if enacted, would be a short‑term measure to manage the current surge in mediations.

Sources and attribution: Sponsor remarks by Senator Putnam; program statistics and process description from Mary Nell Preisler (U of M Extension); endorsements from Stu Lohrey (Minnesota Farmers Union), Hunter Peterson (Minnesota Farm Bureau) and Tom Peterson (Minnesota Department of Agriculture) at the Feb. 18 hearing.