MA Agricultural Mediation Program
Since 2002, MODR has operated the USDA sponsored Agricultural Mediation Program for individuals seeking alternative dispute resolution for adverse determinations made by other USDA agencies, including Rural Development, Farm Services Agency and Natural Resources Conservation Service. This program provides Massachusetts farmers/growers and their lenders an opportunity to access neutral mediation services for agricultural loans, agricultural credit, farm program compliance, pesticides, grazing and other agriculture-related issues. It also means that individuals seeking alternative dispute resolution for adverse determinations made by other USDA agencies, have a local, low-cost mediation alternative. Link to Brochure describing USDA Agricultural Mediation Program (pdf).
Background
In 1988 Congress authorized the USDA to help develop and participate in Certified State Farm Mediation Programs under the USDA Farm Loan Mediation Program – part of the Agricultural Credit Act of 1987.
In 1992 Congress increased federal matching funds to 70 percent in support of state programs.
In 1994 Congress expanded the program under the USDA Reorganization Act, authorizing USDA to offer mediation as an option as part of the informal appeals process with respect to adverse decisions on USDA for program issues.
In 2002, Massachusetts, through the MA Office of Dispute Resolution (MODR) was certified by the USDA to operate and administer the Agricultural Mediation Program for the Commonwealth. Currently 33 states are certified by the USDA to provide these valuable services.
Key Components of Program
Neutrality
It is critical that mediation programs are neutral in practice as well as in perception. Producers must have confidence that the program settles disputes in a fair manner. MODR uses only highly trained mediators who have substantive expertise in agricultural related issues and who have met MODR’s stringent standards.
Confidentiality
Confidentiality is vital to the integrity and success of the mediation process. Without it, participants may be apprehensive, or unwilling to discuss personal financial and emotional matters. MODR’s mediators are selected on the basis of their training, experience and commitment to best practices and ethical standards.
Voluntary
Mediation through MODR’s AgMed program is strictly voluntary. A mediator does not decide who is right or wrong. It is the parties themselves who determine the outcome. If they are not able to reach an agreement, they are free to pursue other avenues to resolve the conflict.
Is there a fee?
Mediation is available at little or no cost to the Commonwealth farming community. There is an administration fee of $25.00. Mediation services for agricultural loans, agricultural credit, farm program compliance, and other agricultural related issues are funded by a grant from the U.S. Department of Agriculture and matching funds provided by MODR. Fee waivers are available for those who qualify.
Why mediate?
- Avoid litigation
- Resolve issues
- Save time and money
- Bridge conflict and reach common ground
- Strengthen business and personal relationships
Issues that can be mediated
- Creditor/debtor issues
- Environmental/land use disputes
- Landlord/tenant issues
- Neighbor disputes
- Government program disputes
- Nuisance issues (noise, smell, traffic)
There are 3 ways to request services:
1) Call MODR toll-free at 1-888-869-1898 or at (617) 287-4040
2) Fax request to (617) 287-4049
3) Mail request to: MODR AgMed Program, UMass Boston, 100 Morrissey Blvd., M-1-627, Boston, MA 02125
Examples of MODR's Work:
- Acceleration of a housing loan - Borrower was three months delinquent and unsure of the foreclosure process. The mediator was able to explain so that she understood the extent of her delinquency and USDA's manner of dealing with late payments. Once the borrower understood resolution of the delinquency was straightforward.
- Acceleration of a housing loan - In mediation the borrower was able to set up a payment plan that included an initial three-month delay in making payments, enabling borrower to get reestablished. The agency accepted an initial payment of 50% of the original arrears and amortized the balance and the delayed payments over a two year period.
- Foreclosure notice for nonpayment— The borrower had fallen behind in her payments due to time needed to recover from a serious fall. She requested mediation to work out a plan to make up the overdue payments. As a result of mediation, she agreed to enter into a Delinquency Workout Agreement with the Rural Housing Service to be monitored by the St. Louis USDA office who participated in the mediation by telephone.
- Notice of foreclosure - Borrowers fell behind on loan payments due to accidents and ensuing health problems. They requested mediation in order to have help understanding all the various programs and regulations. As a result of mediation, the USDA agreed to send a new moratorium application for the borrowers to submit with a number of other supporting documents as specified in the mediation agreement, and with the help of the town social worker, also as specified in the agreement.
Other Resources:
Programs