The Minnesota Farmer Assistance Network

1. 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

2. Lender Survey Highlighted NeedsJanuary 2010

3. Lender Survey Highlighted NeedsJanuary 2010

4. Lender Survey Highlighted NeedsJanuary 2010

5. FARMER LENDER MEDIATION PROGRAMExecutive Summary 2009 Mary Nell Preisler Farmer-Lender Mediation Program Director

6. 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

7. Staffing • 12 part-time mediators • 4 part-time financial analysts • 2 part-time Community Program Specialists • 2.25 administrative staff • full-time program director

8. 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%

10. 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.)

11. $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

12. Primary Enterprise • Crop 35% • Dairy 31% • Cattle 19% • Hogs 12% • Horses 2% • Other 1%

13. The Minnesota Farmer Assistance Network Kevin Plante MFAN Coordinator MN Department of Agriculture

14. 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.

15. 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.

16. Foreclosure Notices Increasing

17. 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

18. 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

21. 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

22. 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

23. The Ag Sector

24. 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

25. Response Teams • Dairy • Regional Extension Educators • Neil Broadwater • Jim Paulson • Jim Salfer • Chuck Schwartau

26. Response Teams • Swine • Mark Whitney • Business Management • Dave Bau • Bill Craig • Rob Holcomb • Bret Oelke

27. Local Educators • Ray Bisek • Brad Carlson • Mike Boersma • Tim Dolan • Laura Kieser • Dan Martens • Randy Pepin • Brenda Postels • Wayne Schoper • Diane Stouffer • Jerry Tesmer • Betsy Wieland • Nathan Winter • Rhonda Wulf

28. 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

29. Center for Family Development Response • In Conjunction with MFAN • Portfolio of Resources • News Releases • Local calls to respond

30. FD Portfolio of Resources • 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 Serieshttp://www.extension.umn.edu/ToughTimes/dealing-with-stress-resources.html • eXtensionhttp://about.extension.org/ • eXtension - Financial Crisis & Families http://www.extension.org/pages/Financial_Crisis_and_Families

31. 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/

32. 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 ?

33. FD Response Teams Family Relations: • Minnell Tralle • Rose Allen • Patricia Stoppa • Kathleen Olson • Colleen Gengler • Joanne Musich • Ellie McCann

34. Family Resource Management: • Antonio Alba Meraz • Shirley Anderson-Porisch • Susan Hooper • Cindy Petersen • Sara Croymans

35. MN Families Connect with Resources Helping Professionals across state informed of issues & resources Ag professionals (seed dealers, elevators, implement dealers, etc) informed of issues & resources News releases promote awareness of issues & other resources MFAN Flyer distributed state wide 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

36. Crisis issues identified Referral to Crisis Connection & others as needed

37. Ag-related needs identified Family-related needs identified Referral to other resources Referral to Family Development Educator in Family Relations or Family Resource Management Referral to MFAN Volunteer Advisor Referral to other resources MFAN Volunteer meets with family FD Educator & MFAN volunteer communicate MFAN Volunteer & FD Educator meet and/or provide appropriate resources to family

39. Thank you! • Questions and/or comments?