Farm Debt Mediation Act 2024

Subject to this section and on receipt of an application for a prohibition certificate under section 18, the Commissioner is to determine the application – by granting the application and issuing a prohibition certificate, in an approved form, to the applicant; or by refusing the application.

For the purposes of subsection (1), the Commissioner must grant the application and issue a prohibition certificate if – the farmer is in default under the farm mortgage; and the farmer has given the Creditor a mediation request in respect of the farm debt concerned; and no exemption certificate is in force in relation to the farm mortgage; and the Commissioner is satisfied that there is at least one additional ground for granting the application that is referred to in subsection (3).

For the purposes of subsection (2)(d), each of the following is an additional ground for granting an application for a prohibition certificate:the farmer has attempted to mediate in good faith throughout the period of 3 months commencing on the day on which the mediation request was given, but no satisfactory mediation has taken place; the Creditor has failed to respond to a mediation request in respect of the farm debt within the period required by Part 5 (or within such longer period as the Commissioner considers is reasonable in the circumstances); the Creditor has indicated in writing to the Commissioner or the farmer that the Creditor does not wish to enter into or proceed with mediation.

Despite this section, the Commissioner may refuse to grant an application made under section 18 where the Creditor has failed to respond to a mediation request if the Commissioner is satisfied that – the Creditor’s failure to respond is justified in the circumstances; and the Creditor intends to mediate within a period that is reasonable in the circumstances.

For the avoidance of doubt, the Commissioner may refuse to grant an application made under section 18 if a mediator cannot commence the mediation – within a period of 3 months from the date on which the application is made under section 18; or within any other period that the Commissioner considers appropriate in the circumstances.