Agricultural Mediation Service

Solving Problems; Resolving Disputes

The North Dakota Agricultural Mediation Service (AMS) was established in 1984 to help financially distressed farmers and ranchers. AMS negotiators are trained to provide farmers with one-on-one assistance in credit and financial matters and resolving disputes.

AMS annually provides mediation and negotiation services, counseling and other assistance to several hundred farmers on a broad range of subjects, including:

• Finances
• Beginning farmer loan applications
• Farm planning
• Farm production practices
• Seed disputes
• Disputes with federal and state agencies

The North Dakota Agricultural Mediation Service is a division of the North Dakota Department of Agriculture, and is headquartered in the State Capitol in Bismarck. AMS policies are established by the North Dakota Credit Review Board.

Advantages

Experience has shown that mediation:

• Prevents violence
• Promotes community harmony
• Results in longer lasting, "better" solutions
• Saves time and money
• Is confidential and preserves the dignity and self-esteem of all parties

What is mediation?

Mediation is a voluntary, problem-solving process created to help farmers and others avoid costly and often ruinous litigation. Mediation brings the disagreeing parties in a dispute to the same table in an attempt to resolve their differences. During mediation, everyone involved in the dispute should be willing to "lay all their cards on the table" and to consider all possible solutions to the problem.

The mediator is a neutral and impartial third party. The mediator arranges the time and location of meetings between disputants and conducts the meetings. Trained in problem-solving techniques, the mediator helps create an environment in which the disagreeing parties can resolve their differences. The mediator assists disputants in considering all options and in recording agreements.

Mediation can mean the difference between an acceptable agreement and expensive litigation, even foreclosure and bankruptcy. And it works: agreements are reached in two-thirds of all cases.

How does it work?

Mediation usually begins after negotiation between a farmer and another party has failed to result in a workable repayment plan. Mediation may also be initiated when a creditor either rejects a borrower's restructuring plan or considers foreclosure. In North Dakota, the Farm Service Agency (formerly FmHA), Farm Credit Services and the Bank of North Dakota are required to offer mediation before initiating foreclosure proceedings. Here is how the mediation process is conducted:

• Either a farmer, lender or other party contacts the AMS and requests mediation.
• AMS assigns a negotiator to help the farmer prepare for mediation by getting all necessary financial papers and other documents in order.
• AMS assigns a mediator to the case.
• The mediator sets up a meeting(s) between the farmer and other parties.
• The negotiator attends mediation meeting with the farmer and helps represent the farmer's information during the meetings.
• The mediator is neutral and facilitates frank and open discussion of all issues.
• The participants discuss all problems, possible solutions and options.
• Participants reach a mutually satisfactory agreement or "agree to disagree."
• The mediator issues a written report detailing the agreement and officially closing the mediation process.

What is negotiation?

Negotiation is a less formal and often longer process than mediation. The negotiator assists to resolve the problem of the farmer or rancher. AMS employs several negotiators located throughout the state. They help farmers and ranchers prepare financial statements, cash flow projections, loan applications and other paperwork. Negotiators will also meet with farm creditors or other government agencies to help farmers with financial management and other issues.

Is there any cost?

If you have never worked with an AMS negotiator, the first 10 hours of negotiation assistance are free of charge. After that, a modest hourly fee is assessed. Mediation fees are charged to farmers, major creditors and other parties for time spent "at the table." A waiver of fees may be granted to those who are unable to pay.

Referrals?

AMS provides referrals to farmers and ranchers in many specialized areas such as:

• Legal services
• Mental health services
• Social services
• Accounting and tax advice
• Alternative financing

How does it work?

If you have questions or need assistance, call the toll-free number, 1-800-642-4752. A negotiator will be assigned to you and will contact you directly.

Other resources

• If you do not already have an attorney, consult with people you trust for a referral. The State Bar Association of North Dakota maintains a list of lawyers who practice agricultural law. For more information, call (701) 255-1404.
• The HELP-LINE provides crisis intervention, information and referrals to individuals facing stress and depression brought on by financial or other rural-related problems. Trained volunteers offer free and confidential assistance to rural residents, 24 hours-a-day, 7 days-a-week. The toll-free number is 1-800-472-2911.
• Additional information can be found at the USDA Agricultural Mediation Program website.

North Dakota
Department of Agriculture
Agricultural Mediation Service
600 E Boulevard Ave Dept 602
Bismarck ND 58505-0020
Phone: (800)642-4752
(701)328-2061
Fax: (701)328-4567