For Immediate Release: Oct. 7, 2009

Media Contact: Dawn Letellier, 605-773-5841

Pierre, S.D. – Crop and livestock producers who are feeling the effects of the national recession can turn to the South Dakota Department of Agriculture (SDDA) for financial counseling and agriculture loan mediation service.

 

Low prices for several commodities, including pork, beef, and milk, have stressed many sectors of the agriculture industry, and SDDA is working to assist producers facing financial difficulties.

 

“Now is the time to be proactive in meeting these economic challenges,” said Secretary of Agriculture Bill Even. “With prices below break-even for much of the livestock industry, many producers are feeling considerable stress. Our mediators are ready and able to work with farmers and ranchers and their lenders to help in these tough times.”

 

The South Dakota Farm Loan Mediation Program has been providing financial management assistance to producers since 1988. State law requires agricultural lenders to request mediation before taking any legal action on loans for borrowers owing $50,000 or more, but mediation can be used to help resolve disputes on agricultural loans in any amounts. 

 

Once mediation is requested, borrowers are notified and given the opportunity to participate in mediation or waive their right to the service. All information provided during mediation is completely confidential. 

 

SDDA has received more than 4,600 mediation requests in the past two decades, with demand for the service increasing each year. From July 1, 2008, to June 30, 2009, SDDA received 171 mediation requests, a 64 percent increase from the previous fiscal year.

 

“In 21 years, I've never seen a mediation that was a complete waste of time,” said SDDA mediator Judith Wood.  “The very least that will come out of the meeting is a better understanding of the entire situation, the options available and the timeframes they have to work with.”

 

SDDA also assists farmers and ranchers through the Ag Finance Counseling program.  Finance counseling can help producers better understand their situations and make informed decisions. The program involves agriculture counselors who provide one-on-one financial management assistance, such as loan paperwork completion and long-term planning.

 

Agriculture loan mediation and finance counseling are free for all South Dakota farmers and ranchers. Individuals or families interested in agriculture mediation and counseling may contact SDDA’s Dawn Letellier at 605-773-5841 or 800-228-5254. 

 

For more information, log on to www.state.sd.us/doa/

 

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