Sen. Putnam urges extension of farmer-lender mediation as cases surge; bill referred to Higher Education
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Summary
Senate File 3583 would remove the sunset on Minnesota's farmer-lender mediation program and extend it five years; sponsors and the Minnesota Farmers Union said mediation requests have risen several-fold and the program resolves roughly 90% of cases. The committee referred the bill to the Higher Education Committee.
Senator Putnam presented Senate File 3583 to extend Minnesota's farmer-lender mediation program, saying the state is seeing a marked rise in potential defaults between farmers and lenders. "It's a really, really hard time to be a farmer in the state of Minnesota," Senator Putnam said, arguing the program gives farmers breathing room to negotiate with lenders.
The Minnesota Farmers Union, represented by Gary Wirtish, testified in strong support. "This program saves farms, and I could probably say saves lives too," Wirtish said, noting the program's high resolution rate. He told the committee that mediation has allowed nearly 90% of participating farmers to reach agreements that keep them farming.
Witnesses and the bill sponsor said requests for mediation have climbed sharply in the past year. Senator Putnam offered a ballpark figure of about 300 mediations per year in recent years and described a three- to fourfold increase in demand compared with earlier years.
Committee members asked how the mediation process works, who selects mediators and whether farmers bear costs. Whitney Place of the University of Minnesota Extension explained the program's operations: the mandatory element is notice, not participation; mediators are assigned based on geography and availability; and the program is funded by the state and federal governments through the University of Minnesota Extension. Place added that many notices do not lead to full mediation—last year, 992 notices were waived and lenders and farmers resolved matters on their own.
Senator Westrom and other members pressed about whether mediations could continue without the statutory mandatory-notice component and whether farmers choose mediators. Testimony indicated private mediations could occur without the program, but the state-funded program removes cost barriers for financially stressed farms.
Senator Westrom moved to refer the bill; the committee voice vote carried and the chair declared Senate File 3583 recommended to pass and re-referred to the Higher Education Committee.
The bill's next step is consideration in the Higher Education Committee; no formal floor date was set during the hearing.