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Rep. Jeanne Poppe votes to extend Farmer Lender Mediation Act, invest in additional food security funds

Tuesday, April 14, 2020

Today, the Minnesota House approved its fourth package of legislation in the past month to help workers, businesses, and families impacted by the unprecedented COVID-19 public health crisis. Among other actions, it temporarily extends the period before which a creditor can enforce a debt or terminate a contract for deed subject to the Farmer-Lender Mediation Act from 90 days to 150 days (an additional two months). The extension becomes effective the day following enactment and applies to any mediation request filed before July 31, 2020. The bill also makes a new $1.25 million appropriation for Second Harvest Heartland to purchase and distribute milk and protein products such as pork, poultry, beef, dry legumes, cheese, and eggs.



“This bill is a win-win-win for farmers, food shelves, and Minnesotans who are facing food insecurity as a result of the COVID-19 pandemic,” said Rep. Jeanne Poppe (DFL-Austin). “Family farmers facing mediation will also receive vital financial flexibility that will provide a level of peace of mind as we navigate the economic uncertainty caused by this unprecedented public health crisis.” 



Extending the farmer-lender mediation deadline buys time for farmers who are unable to participate in face-to-face mediations due to public health guidelines. Many rural Minnesota residents don’t have reliable internet options, and alternatives like Zoom or Webex are not available or practical for many farmers, which makes mediation during this public health crisis nearly impossible.



Currently, a bank or other creditor must offer mediation to an eligible farmer before enforcing a debt of $15,000 or more against agricultural property such as land, livestock, or crops. Specifically, the Farmer-Lender Mediation Act applies to foreclosures, repossessions, cancellations of a contract for deed, court orders or judgments, and debt subject to the Uniform Commercial Code. Creditors begin the mediation process by sending Extension’s Farmer-Lender Mediation office a notice of debts over $15,000. The Farmer-Lender Mediation office then sends debtors information, including a Request for Mandatory Mediation Form. Debtors (farmers) must return that form within 14 days if they want to enter the mediation process.



The bill approved today also increases the state’s appropriation to Second Harvest Heartland by $1.25 million (one-time). This appropriation is achieved by increasing the FY20 Minnesota Dept. of Agriculture (MDA) budget by $1.25 million for MDA’s grant to Second Harvest Heartland on behalf of Minnesota’s six Feeding America food banks. These funds are to purchase and distribute milk and to purchase and distribute protein products such as pork, poultry, beef, dry legumes, cheese, and eggs.



The original 2019 Ag & Food finance budget passed into law focused on Second Harvest’s purchases of milk for food banks, but protein products are now added in the bill, and must be surplus products sourced from Minnesota processors and producers based on low-cost bids, when practicable. Second Harvest may use up to two percent of their grant for administrative expenses, and they are directed to distribute these food items to Minnesota food shelves and other charitable organizations that are eligible to receive food from food banks.



The bill increases the FY20 appropriation for Second Harvest Heartland grants from $1.7 million to $2.95 million. The FY21 appropriation for Second Harvest grants remains $1.7 million.




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