The Minnesota Farmer Assistance Network

Chuck Schwartau, Extension EducatorMary Nell Preisler, Farmer-Lender Mediation Program

DirectorKevin Plante, MFAN Coordinator, MN Department of

AgricultureEllie McCann, Extension Educator

Lender Survey Highlighted NeedsJanuary 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)

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 NeedsJanuary 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?

Lender Survey Highlighted NeedsJanuary 2010

FARMER LENDER MEDIATION PROGRAMExecutive Summary 2009

Mary Nell PreislerFarmer-Lender Mediation

Program Director

3,107 Mediation Notices

• 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

• 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

• 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

• 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

• Crop 35%• Dairy 31%• Cattle

19%• Hogs 12%• Horses

2%• Other 1%

The Minnesota Farmer Assistance Network

Kevin PlanteMFAN 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

2008 2009 % inc. / dec.

Number of notices received 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 ExtensionRetreived 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– 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– Dave Bau– Bill Craig– Rob Holcomb– Bret Oelke

Local Educators

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

• Dollar Works 2 Spending Plan & Resource Management Toolshttp://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 workbookhttp://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 Serieshttp://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

Family-related needs identified

Crisis issues identified

Crisis issues identified

Referral to Crisis Connection &

others as needed

Ag-related needs identified

Referral to MFAN Volunteer Advisor

MFAN Volunteer

meets with

family

Referral to other

resources

Family-related needs identified

Referral to Family

Development Educator in

Family Relations or

Family Resource

Management

FD Educator &MFAN

volunteer communicate

MFAN Volunteer & FD Educator meet

and/or provide appropriate resources

to family

Referral to other

resources

Thank you!

• Questions and/or comments?