Farmers, lenders get more time to prevent foreclosures, repossessions

Farmers and lenders will be given more time to prevent foreclosures and repossessions of agricultural property as the coronavirus pandemic hammers the already-hurting industry.

The Farmer-Lender Mediation Act requires banks and other creditors to offer a 90-day mediation period to farmers before enforcing debts against land, livestock or crops.

Effective retroactive to April 16, 2020, the new law modifies a COVID-19-response law passed earlier in the 2020 session by extending the mediation period between the farmer and lender to 150 days or until Dec. 1, 2020, whichever is later. It also expands eligibility to include farmers who initiate mediation under the Farmer-Lender Mediation Act by Aug. 31, 2020. Previously, that date was July 31, 2020.

Rep. Todd Lippert (DFL-Northfield) and Senator Michael Goggin (R-Red Wing) are the sponsors.

HF4599*/SF4553/CH89

HF4599* / SF4553 / CH97