More support for our farmers on the way

More support for our farmers is a step closer with new funding under the Farm Debt Mediation Scheme announced in Parliament.

The funding was announced as part of the legislation that enables the new scheme which has passed the House of Assembly today.

Minister for Small Business and Consumer Affairs, Madeleine Ogilvie, said the scheme was the result of the 2019 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

“An important part of our 2030 Strong Plan for Tasmania’s Future is to ensure our regions are set up for resilience and growth, and this scheme aims to give more power to famers if disputes arise with their financial institutions,” said Minister Ogilvie.

“Instead of having to enter long and expensive court proceedings if struggling to service debt, this scheme gives our farmers a better chance of working towards a suitable resolution with their financial institution.

“The mediation process should be considerably quicker than court proceedings, which can drag on over long periods, and will be significantly cheaper as well.

“To help our farmers even further as we move to the new mediation scheme, up to $3000 each per mediation will be available to farmers who now take up this option under the scheme.

“The funding will come from savings identified from establishing the scheme which we expect will cover at least the first year of operation of the new framework.

“The amount paid to eligible farmers will depend on the actual costs of the mediation but the total funding available will be capped to the available identified cost savings and the need for any ongoing funding of this kind will be reviewed over the initial 12-month period.

“State Growth is currently finalising the arrangements for the funding and guidelines with an application process to open with the launch of the framework.”