Funding Supports Financial and Mental Well-Being of North Dakota Farmers
In partnership with: North Dakota Department of Agriculture
Farming is risky business: A single hiccup in production can lead to a cash shortfall threatening the farm’s future.
“Farmers have the same debt and expense structures whether it’s a good year or a bad year,” explains Kyle Olson, assistant professor of farm management education at Bismarck State College. “In a bad year, a producer can end up in default because a payment is due, and they don’t have the income to cover it.”
The North Dakota Mediation Service (NDMS) was designed to help.
The North Dakota Department of Agriculture launched the program in 1984 to help financially distressed farmers and ranchers address credit and financial matters and resolve disputes with creditors.
The mediation service helps with conflicts ranging from denied credit and loan applications to farm foreclosures. Credit counselors like Olson serve as neutral third parties, leading discussions and offering possible solutions.
Betty Schneider, mediation coordinator for NDMS, notes that mediation is not about determining who is right or wrong. Mediators aren’t judges or decision-makers, but the process can help avoid expensive litigation. All the information is confidential and allows farmers and creditors to negotiate agreements before farmers face bankruptcy proceedings.
“In mediation, each party is given an opportunity to describe the situation from their perspective,” she says. “It’s an effective solution for resolving issues.”
See more: Giving North Dakota Ag a Helping Hand
Setting Up for Success
Schneider can cite several examples of successful outcomes.
A mediator with NDMS facilitated a conversation between a farmer who wanted to purchase the family farm and the Farm Service Agency that denied the loan guarantee required to secure funding. During a discussion of possible solutions, the farmer and the federal agency agreed to additional conditions resulting in a loan guarantee that enabled the farmer to secure the funds to purchase the farm.
In a separate case, an NDMS mediator was called after a small grain producer claimed an agricultural business provided sub-par services causing crop damage. Both parties retained attorneys but failed to reach a settlement despite ongoing negotiations. After a single mediation session, an agreement was reached, eliminating the need to take the case to court.
“The NDMS demonstrates that regardless of the nature of the dispute, mediation can improve communication and repair the relationship between the parties, enable the parties to tailor solutions that work for them, and is generally faster and cheaper than traditional litigation,” Schneider says.
See more: Grand Farm in North Dakota Looks to the Future of Agriculture
Cultivating Mental Health
Farm distress isn’t always financial.
Sean Brotherson, Extension family science specialist at North Dakota State University, points to extreme weather events, lower commodity prices and the trade war with China as causes of significant emotional and financial distress.
In 2019, NDSU Extension received grant funding through the North Central Farm and Ranch Stress Assistance Center and the U.S. Department of Agriculture’s National Institute of Food and Agriculture (NIFA) to provide mental health resources and assistance to distressed farmers and ranchers.
Programs like Adult Mental Health First Aid, a free training that teaches the skills to recognize and respond to signs of depression and other mental health concerns and provide connections to professional resources, are already having an impact. The center and NDSU Extension farm stress resources are excellent starting points.
“Agriculture is an industry that, while rewarding, can also expose farmers and ranchers to chronic stress,” Brotherson explains. “In rural areas, health care resources can be limited, and travel and cost are factors so we needed to provide resources to help manage mental health.”
NDDA recently received a $500,000 grant through NIFA to continue this work.
NDDA will partner with NDSU and the North Dakota Department of Career and Technical Education to initiate, expand or sustain programs that provide professional agricultural behavioral health counseling and referral for other forms of assistance as necessary through farm telephone helplines and websites, training programs and workshops, support programs, and outreach services and activities.
“We never want producers to get into a situation where the only solution is liquidation,” Olson says. “We’re here to help them get through sticky, uncomfortable situations.”