Senate Bill 517 Summary

• Establishes the "Farm Loan Mediation Act" requiring mandatory mediation before creditors can enforce debts exceeding $5,000 against agricultural property, with exceptions for small-scale operations and those with prior bankruptcy filings.

• Requires creditors to serve debtors with a mediation notice before starting foreclosure or collection proceedings, and prohibits enforcement actions for 90 days after a debtor files a mediation request with the director.

• Establishes roles for farm mediators and financial analysts appointed by the director to facilitate negotiations between debtors and creditors, including preparation of financial information and scheduling of orientation and mediation meetings.

• Defines good faith participation requirements for both debtors and creditors, including attendance at meetings, providing financial information, and releasing funds for necessary living and farm operating expenses, with remedies for non-compliance.

• Requires the director to promulgate standard forms and rules, provide mediator training, and contract with qualified individuals experienced in farm finance and agricultural law to implement the mediation program.