Farmers support legislated mediation before foreclosure

Tasmanian farmers are supporting a move in the Legislative Council to force banks to mediate before foreclosing on farms that have mortgage debt.

The Tasmanian Farmers and Graziers Association (TFGA) today endorsed Western Tiers MLC Greg Hall’s suggestion that the State Government follow the legislated moves in Victoria and NSW to make mediation a mandatory requirement rather than banks and other creditors being able to foreclose on farms summarily, ejecting farmers from their land.

It is already law in NSW and is being enacted in Victoria.

“We should do this right now, when conditions are good and the pressure is generally off farmers,” TFGA chief executive Jan Davis said today.

“It will be too late changing the law when times are hard and the banks have already moved in. Immediate foreclosure places enormous stress on farmers and their families. Nobody comes out of it smelling of roses.

“Voluntary codes of conduct have been tried in the past; they don’t work.

“The aim is to ensure the farm sector remains productive when things get tough, like during the last drought, to prevent banks from acting hastily” Ms Davis said.
Jan Davis http://www.tfga.com.au/