Farm Debt Mediation Service (FDMS) offers free financial counselling and mediation for farmers struggling with debt.
Benefits of participating
- A financial consultant will help you, free of charge, prepare for a meeting between you and your creditors to come up with a mutually acceptable arrangement
- Participation is voluntary, private and confidential
Meet a financial consultant
Firsthand accounts of how FDMS helps Canadian farmers.
Art Bailey,
CPA,
Ontario
“After over 200 mediation meetings, I can still be surprised at how effective our mediators are at providing alternative solutions that work. The informal environment encourages participants to talk to one another openly.”
- What happens in your first meeting with a farmer?
- In our first meeting, I have the family review the situation that has led to this point of financial difficulty. I find it helpful for all to identify the causes and understand the extent of the problem.
- What happens next?
- As I review both the financials and the creditors statements, I’m able to provide my professional opinion on which aspects of the farm operation can be improved and which are unlikely to get better. We discuss solutions and I provide an informed and independent appraisal of what could work for both the farmer and the creditors. I can also provide recommendations which the farmer may not have considered.
- Can you share a short success story from your time working with farmers on behalf of FDMS?
- I went to meet with a farmer who had operated the same operation for over 50 years. The place was rundown and the current cash flow forecasts could not support the level of debt now due. He was about to lose the property. In working closely with the farmer, I found out he had several children living in the community. Although he was hesitant to seek assistance, I arranged a family meeting where I explained the seriousness of the situation. The farmer and his children worked together to propose a recovery plan. The mediation was successful and he is still in business today. I still pass by occasionally, and the place looks better than it has in years.
- What do you wish more farmers knew about FDMS?
- One particular benefit is that many of the larger lenders and leasing managers have attended a number of these meetings and show up prepared to listen to the farmer's proposal and have open and honest conversations.
Doug Stevenson,
Chartered Mediator,
British Columbia
“FDMS offers a commonsense approach in dealing with financial issues that everyone can have. It is like talking around the kitchen table. It offers farmers the possibility of regaining control of their financial situation.”
- Can you share a success story from your time acting as an FDMS mediator?
- I once mediated between a new bank manager and a farmer who had just taken over the family farm. The banker was newer to agriculture and had limited knowledge of the farm community. The farmer was well established in the community but was not a financial expert. The mediation was about establishing communication between the two parties and helping them to understand each other. Following the mediation meeting, they began working together and developing a mutually beneficial relationship. The banker taught the farmer new financial skills, while the farmer shared his knowledge of agriculture and the farming community with the banker.
- What kind of an impact have you seen FDMS have on the farmers you’ve worked with?
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- Re-established relationships between the parties
- Provided doable action plans for farmers
- In some cases, provided acceptable exit plans for farmers to maximize their equity
- Provided financial plans that were used in refinancing situations
- Provided both financial and operational plans to farm families
- Provide hope to farm families
Yvonne Thyssen-Post,
Professional Agrologist,
Nova Scotia
“People are sometimes hesitant to apply under FDMS, as there is a stigma attached to it, indicating you are in trouble. People should think, you are smarter for recognizing there is a problem, and you are willing to ask for help to resolve it.”
- What do you think holds some farmers back from reaching out to FDMS?
- They think reaching out means you are in trouble and going to lose your business. They may indeed be in trouble, but by waiting until the lender sends a Notice of Intent, they have waited far too long. The problem is very serious by then and there may be fewer options remaining. If you see a problem coming, like a missed payment, or non-revolving line of credit, that is when to apply to FDMS.
- Sooner rather than later – there are more options when you apply early than when you wait until you lose control of the decision.
- How would you describe the value that your role brings to farmers?
- Farmers appreciate having someone to talk to, help deal with the stress, who understands their situation, their business and can help them deal with the paperwork and the creditors.
- There is value in gathering all the information into one package for current and prospective creditors.
Sharon Wilson,
Chartered Mediator,
Alberta
“In my service as a mediator on contract with FDMS since 1998, I can proudly say that much of the time applicants and their creditors come out with an arrangement which outlines a plan for recovery, dates for milestones, responsible parties and next steps.”
- Can you share a success story from your time acting as an FDMS mediator?
- One situation I mediated was between a farmer in food production and his creditors.
- The farmer explained that operational constraints, machinery breakdown, lack of employees and prior infestation was the reason for past cropping failures.
- After a long meeting with the farm family, including explanations of their operations and intentions, possibilities for recovery started to emerge. Creditors provided options for refinancing, including longer terms and one payment.
- The refinancing and additional help allowed the farmer to continue with his business plan and slowly expand.
- This freed up operating capital to hire part-time help.
- Today I see those food products and trucks all over the place. The business has expanded across our province and beyond.
How the FDMS helps
Apply if you’re a farmer in one of the following situations:
- You’ve been contacted by your creditors with a Notice of Intent
- You’re concerned that in the near future, you may not be able to pay your debts and you will soon be contacted by creditors
1. Apply
- Download and complete an application form
- Email your completed form to us at aafc.fdms-smmea.aac@agr.gc.ca or fax it to us at 1-833-902-8388
We’ll let you know within one business day if your application is accepted. We’ll provide you with additional information and answer any questions you may have about the process.
2. We’ll arrange for a financial consultant to meet with you
Within one week, we’ll arrange for one of our qualified, independent financial consultants to meet with you and review your financial information. This meeting can be either in-person or virtual.
The financial consultant will come up with a clear picture of your financial situation, help you explore your options, and work with you to develop a recovery plan.
3. We’ll arrange for a professional mediator to meet with you
A professional mediator will then meet with you and the financial consultant to prepare for the mediation meeting. The mediator will then lead the meeting between you, the financial consultant, and the creditors. You’ll present your recovery plan to your creditors to come up with a mutually acceptable arrangement that is private and confidential.
4. Take action: Sign and fulfill the arrangement
After the meeting, you and your creditors will have the opportunity to sign the arrangement you’ve come up with together. The mediation process lasts from 50 to a maximum of 120 days from the day we received your application form. Once you sign the agreement, the mediation process ends.
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