The Minnesota Farmer
Assistance Network
Chuck Schwartau, Extension Educator
Mary Nell Preisler, Farmer-Lender Mediation Program Director
Kevin Plante, MFAN Coordinator, MN Department of Agriculture
Ellie McCann, Extension Educator
Lender Survey Highlighted Needs
January 2010
Responses
Topic
8
Information on MFAN (Minnesota Farmer Assistance
Network). This new program provides business and financial
guidance at no cost to Minnesota farm families facing
economic hardship
7
Information and update on the Farmer-Lender Mediation
program
6
Working with farm families under stress, communicating
under pressure, learning and understanding the 5 stages of
the Grief Cycle (shock and denial, anger, depression and
detachment, dialogue and bargaining and acceptance)
Lender Survey Highlighted Needs
January 2010
Responses
Topic
6
Price/risk management -- milk contracts, options, futures,
Margin management (includes some combination of options,
futures, gross livestock margin insurance, purchasing or
contracting inputs, or having a larger cash reserve)
8
Tax Implications of Farm Liquidation, Debt Forgiveness and
Bankruptcy
6
Looking at Financial Data such as FINBIN information
compiled at the U of MN Center for Farm Financial
Management. What are the key profitability indicators?
Lender Survey Highlighted Needs
January 2010
Responses
Topic
5
Managing costs on the dairy farm including feed cost, feed
cost ratios, feed cost calculators (spreadsheets on the web)
5
Sound dairy investments that make sense for a particular
dairy operation. Focusing/prioritizing facilities. Is it needed? Is
it well designed? Will it improve labor efficiencies and/or
profitability?
FARMER LENDER MEDIATION PROGRAM
Executive Summary 2009
Mary Nell Preisler
Farmer-Lender Mediation
Program Director
3,107 Mediation Notices
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increase of 55.2% over 2008
increase of 85.6% since 1999
38% requested mediation
639 notices completed mediation in 2009
66% reached a settlement
Staffing
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12 part-time mediators
4 part-time financial analysts
2 part-time Community Program Specialists
2.25 administrative staff
full-time program director
Geographic Distribution
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Central 24%
South East 21%
East Central 15%
Northwest 12%
West Central 10%
Southwest 8%
South Central 6%
North Central 3%
Northeast 1%
Initial Creditor
• Banks 39%
• Implement Dealers and Manufacturers 33%
• Farm Credit Services, AgStar, AgCountry and
AgriBank 21%
• U S D A / Farm Service Agency 4%
• Contracts for Deed 2%
• Others 1%
(Judgments, small business accounts and etc.)
$322.8M Debt in Mediation
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Banks $124.5M
Farm Service Agency $116M
Farm Credit Services $48.5M
Main Street Suppliers and Small Businesses $18M
Contracts $9.5M
Implement Companies $5M
Overdue taxes $1.1M
Primary Enterprise
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Crop 35%
Dairy 31%
Cattle 19%
Hogs 12%
Horses 2%
Other 1%
The Minnesota Farmer Assistance Network
Kevin Plante
MFAN Coordinator
MN Department of Agriculture
What is MFAN
• An effort by a network of agencies and organizations,
such as the Mn Department of Agriculture, Univ. of
Minn. Extension Service, MnSCU Farm Business
Management, and others to assist farmers facing
financial difficulty
• Provide single point contact to address financial issues
and connect farmers to resources to help solve those
issues.
• Networked with Crisis Connection to provide
behavior health counseling.
Why was MFAN developed?
• Listening sessions with MDA Commissioners identified
possible financial issues in Minnesota agriculture,
especially in the livestock sector.
• Increase in Farmer-Lender Mediation notices identified
a need for farm financial management in agricultural
production industry.
• Changes to University Extension and Farm Business
Management program staffing identified a need for
personnel available for one-on-one consultation.
• Similar successful program in Wisconsin has operated
for 20 years.
Foreclosure Notices Increasing
Number of notices received
2008
2009
% inc. / dec.
2,002
3,107
+55%
Creditors with a secured debt of more than $5,000 against an agricultural property
must offer Farmer-Lender Mediation before proceeding with foreclosure, repossession,
cancellation of contract, or collection of a judgment. The number of notices of
secured debt increased dramatically in 2009, and has increased 85.6% since
1999.
Source: Comparative Report, Farmer-Lender Mediation Service, U of M Extension
Retreived 2/5/10 from http://www.extension.umn.edu/community/Mediation/summary.html
MFAN Partners
• Farm Business Management Program (MnSCU)
• Univ. of Minnesota
– Cooperative Extension Service
– Farmer-Lender Mediation
• Crisis Connection
– 24/7 mental health providers
• United Way (211)
– Local access to human service needs (food, energy, etc)
• Farm Advocate Program – MDA
• Farmers’ Legal Action Group (FLAG)
• Dept. of Employment and Economic Dev. (DEED)
– Minnesota Workforce Centers
• USDA – Farm Services Agency
• Faith-Based Counseling Groups
– Lutheran Social Services
– Catholic Charities
MFAN Hotline
• 1-877-898-6326 (MFAN)
– Local 651-201-6326
– 24/7 – 365 day connection
– MFAN business hours 8-4:30 M-F (except
holidays)
• After hours – answered by Crisis Connection
– Option to connect with MFAN, Crisis Connection,
or 211(United Way)
• Can also contact via email mfan.mda@state.mn.us
• Website: www.mda.state.mn.us/mfan
What happens when someone calls MFAN?
• Discuss situation with caller
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Farmer or relation to farm
Primary reason for calling
Family/home situation
Need for local assistance
Assess emotional level of caller/situation
• Connect with MFAN Analyst, Extension personel,
FBM Instructor, or Farm Advocate
MFAN Analysts
• Work one-one-one with farmers referred to them.
• Conduct farm operational and financial analysis.
– Financial Planning
– Loan applications
• Identify family and behavioral health needs.
– Assist with contacting local agencies.
– Help families reduce the stress of the situation.
• Help farmers connect with resources to solve
problems
• Volunteer position – former Extension, FBM, FSA
Directors, bankers
The Ag Sector
Ag Sector Areas of Concern
• Areas of greatest immediate concern
– Dairy
• 2009 markets resulted in many farms showing ~$500 loss per
cow
– Swine
• 2009 markets resulted in losses in the ~$25 (and higher)
per animal marketed
• No enterprise is exempt
Response Teams
• Dairy
– Regional Extension Educators
• Neil Broadwater
• Jim Paulson
• Jim Salfer
• Chuck Schwartau
Response Teams
• Swine
– Mark Whitney
• Business Management
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Dave Bau
Bill Craig
Rob Holcomb
Bret Oelke
Local Educators
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Ray Bisek
Brad Carlson
Mike Boersma
Tim Dolan
Laura Kieser
Dan Martens
Randy Pepin
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Brenda Postels
Wayne Schoper
Diane Stouffer
Jerry Tesmer
Betsy Wieland
Nathan Winter
Rhonda Wulf
Assistance Available
• Finpack
– Self-selected extension educators
– MnSCU Farm Business Management Advisors
• Management Decision Assistance
– EFAN’s program teams
• Additional publications and tools being developed and
posted on program team webpages
Center for Family Development Response
In Conjunction with MFAN
•Portfolio of Resources
•News Releases
•Local calls to respond
FD Portfolio of Resources
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Dollar Works 2 Spending Plan & Resource Management Tools
http://www.extension.umn.edu/ResourceManagement/Dollarworks2.html
Getting Through Tough Times series (18 worksheets)
http://www.extension.umn.edu/ResourceManagement/toughtimes.html
Building Family Strengths - communication workbook
http://www.extension.umn.edu/distribution/familydevelopment/DE7265.html
We Agree: Creating a Parenting Plan
http://www.extension.umn.edu/distribution/familydevelopment/DE8019.html
Dealing with Stress: A Web-based Educational Series
http://www.extension.umn.edu/ToughTimes/dealing-with-stress-resources.html
eXtension
http://about.extension.org/
eXtension - Financial Crisis & Families
http://www.extension.org/pages/Financial_Crisis_and_Families
Additional Family Resources
• Sowing Seeds of Hope - Rural Assistance
Center (mental health resources)
http://www.raconline.org/success/success_details.php?success_id=485
• Crisis Connection
http://www.crisis.org/
Family Development News Releases
• Upcoming news releases to include:
– Stress and Depression
– Communicating with Lenders/Businesses
– How to Talk about Money Issues
– Communicating with Children
– Anxiety
– Other ?
FD Response Teams
Family Relations:
• Minnell Tralle
• Rose Allen
• Patricia Stoppa
• Kathleen Olson
• Colleen Gengler
• Joanne Musich
• Ellie McCann
Family Resource Management:
• Antonio Alba Meraz
• Shirley Anderson-Porisch
• Susan Hooper
• Cindy Petersen
• Sara Croymans
MN Families Connect with Resources
MFAN
Flyer
distributed
state wide
News releases
promote
awareness of
issues & other
resources
Helping
Professionals
across state
informed of
issues &
resources
Ag professionals
(seed dealers,
elevators, implement
dealers, etc)
informed of
issues &
resources
Farm family member
or concerned
individual makes call
to MFAN
MFAN Intake Staff
Assesses Needs with
Caller
Ag-related needs
identified
Crisis issues
identified
Family-related needs
identified
Crisis issues identified
Referral to Crisis
Connection &
others as needed
Ag-related needs
identified
Referral
to MFAN
Volunteer
Advisor
Referral
to other
resources
MFAN
Volunteer
meets
with
family
MFAN Volunteer & FD
Educator meet and/or
provide appropriate
resources to family
Family-related
needs identified
Referral
to other
resources
Referral to
Family
Development
Educator in
Family
Relations or
Family
Resource
Management
FD Educator &
MFAN volunteer
communicate
Thank you!
• Questions and/or comments?