CHAPTER 82 - STATE AGRICULTURAL LOAN MEDIATION PROGRAMS

Title 7 > CHAPTER 82

Sections (6)

§ 5101 Qualifying States

(a) In general A State is a qualifying State if the Secretary of Agriculture (hereinafter in this chapter referred to as the “Secretary”) determines that the State has in effect a mediation program that meets the requirements of subsection (c).

(b) Determination by Secretary Within 15 days after the Secretary receives from the Governor of a State a description of the mediation program of the State and a statement certifying that the State has met all of the requirements of subsection (c), the Secretary shall determine whether the State is a qualifying State.

(c) Requirements of State mediation programs To be certified as a qualifying State, the mediation program of the State must provide mediation services to persons described in paragraph (2) that are involved in agricultural loans (regardless of whether the loans are made or guaranteed by the Secretary or made by a third party). The mediation program of a qualifying State may provide mediation services to persons described in paragraph (2) that are involved in one or more of the following issues: Wetlands determinations. Compliance with farm programs, including conservation programs and the national organic program established under the Organic Foods Production Act of 1990 ( 7 U.S.C. 6501 et seq.). Agricultural credit. Rural water loan programs. Grazing on National Forest System land. Pesticides. Lease issues, including land leases and equipment leases. Family farm transition. Farmer-neighbor disputes. Such other issues as the Secretary or the head of the department of agriculture of each participating State considers appropriate for better serving the agricultural community and persons eligible for mediation. Funding provided for the mediation program of a qualifying State may also be used to provide credit counseling to persons described in paragraph (2)— prior to the initiation of any mediation involving the Department of Agriculture; or unrelated to any ongoing dispute or mediation in which the Department of Agriculture is a party. Subject to subparagraph (B), the persons referred to in paragraph (1) include— agricultural producers; creditors of producers (as applicable); persons directly affected by actions of the Department of Agriculture; and any other persons involved in an issue for which mediation services are provided by a mediation program described in paragraph (1)(B). Subject to clause (ii) and section 5103 of this title , a person may not be compelled to participate in mediation services provided under this Act. Clause (i) shall not affect a State law requiring mediation before foreclosure on agricultural land or property. The Secretary shall certify a State as a qualifying State with respect to the issues proposed to be covered by the mediation program of the State if the mediation program— provides for mediation services that, if decisions are reached, result in mediated, mutually agreeable decisions between the parties to the mediation; is authorized or administered by an agency of the State government or by the Governor of the State; provides for the training of mediators; provides that the mediation sessions shall be confidential; ensures, in the case of agricultural loans, that all lenders and borrowers of agricultural loans receive adequate notification of the mediation program; and ensures, in the case of other issues covered by the mediation program, that— the Department of Agriculture receives adequate notification of those issues; and persons directly affected by actions of the Department of Agriculture receive adequate notification of the mediation program.

(d) Definition of mediation services In this section, the term “mediation services”, with respect to mediation or a request for mediation, may include all activities related to— the intake and scheduling of cases; the provision of background and selected information regarding the mediation process; financial advisory and counseling services (as appropriate) performed by a person other than a State mediation program mediator; and the mediation session.

§ 5102 Matching grants to States

(a) Matching grants Within 60 days after the Secretary certifies the State as a qualifying State under section 5101(b) of this title , the Secretary shall provide financial assistance to the State, in accordance with subsection (b), for the operation and administration of the mediation program.

(b) Amount of grant Subject to paragraph (2), the Secretary shall pay to a State under subsection (a) not more than 70 percent of the cost of the operation and administration of the mediation program within the State. The Secretary shall not pay more than $500,000 per year to a single State under subsection (a).

(c) Use of grant Each State that receives an amount paid under subsection (a) shall use that amount only for the operation and administration of the mediation program of the State with respect to which the amount was paid. For purposes of paragraph (1), operation and administration expenses for which a grant may be used include— salaries; reasonable fees and costs of mediators; office rent and expenses, such as utilities and equipment rental; office supplies; administrative costs, such as workers’ compensation, liability insurance, the employer’s share of Social Security, and necessary travel; education and training; security systems necessary to ensure the confidentiality of mediation sessions and records of mediation sessions; costs associated with publicity and promotion of the mediation program; preparation of the parties for mediation; and financial advisory and counseling services for parties requesting mediation.

(d) Penalty If the Secretary determines that a State has not complied with subsection (c), such State shall not be eligible for additional financial assistance under this chapter.

§ 5103 Participation of Federal agencies

(a) Duties of Secretary of Agriculture The Secretary, with respect to each program or agency under the jurisdiction of the Secretary— shall prescribe rules requiring each such program or agency to participate in good faith in any State mediation program certified under section 5101 of this title ; shall participate in mediation programs certified under section 5101 of this title ; and shall— cooperate in good faith with requests for information or analysis of information made in the course of mediation under any mediation program certified under section 5101 of this title ; and if applicable, present and explore debt restructuring proposals advanced in the course of such mediation. The Secretary shall not be bound by any determination made in a program described in section 5101 of this title if the Secretary has not agreed to such determination.

(b) Duties of Farm Credit Administration The Farm Credit Administration shall prescribe rules requiring the institutions of the Farm Credit System— to cooperate in good faith with requests for information or analysis of information made in the course of mediation under any mediation program described in section 5101 of this title ; and to present and explore debt restructuring proposals advanced in the course of such mediation.

§ 5104 Regulations

The Secretary and the Farm Credit Administration shall prescribe such regulations as may be necessary to carry out this chapter. The regulations prescribed by the Secretary shall require qualifying States to adequately train mediators to address all of the issues covered by the mediation program of the State. ( Pub. L. 100–233, title V, § 504 , Jan. 6, 1988 , 101 Stat. 1664 ; Pub. L. 103–354, title II, § 282(c) , Oct. 13, 1994 , 108 Stat. 3235 .)

§ 5105 Report

Not later than 2 years after December 20, 2018 , the Secretary shall submit to Congress a report describing— the effectiveness of the State mediation programs receiving matching grants under this chapter; recommendations for improving the delivery of mediation services to producers; the steps being taken to ensure that State mediation programs receive timely funding under this chapter; and the savings to the States as a result of having a mediation program. ( Pub. L. 100–233, title V, § 505 , Jan. 6, 1988 , 101 Stat. 1664 ; Pub. L. 103–354, title II, § 282(d) , (f)(1), Oct. 13, 1994 , 108 Stat. 3235 ; Pub. L. 115–334, title V, § 5402(b) , Dec. 20, 2018 , 132 Stat. 4675 .)

§ 5106 Authorization of appropriations

There are authorized to be appropriated to carry out this chapter $7,500,000 for each of the fiscal years 1988 through 2023. ( Pub. L. 100–233, title V, § 506 , Jan. 6, 1988 , 101 Stat. 1664 ; Pub. L. 101–624, title XVIII, § 1853 , Nov. 28, 1990 , 104 Stat. 3837 ; Pub. L. 103–354, title II, § 282(e) , Oct. 13, 1994 , 108 Stat. 3235 ; Pub. L. 106–472, title III, § 306(c) , Nov. 9, 2000 , 114 Stat. 2073 ; Pub. L. 109–17, § 1 , June 29, 2005 , 119 Stat. 339 ; Pub. L. 111–233, § 2 , Aug. 16, 2010 , 124 Stat. 2493 ; Pub. L. 113–79, title V, § 5401 , Feb. 7, 2014 , 128 Stat. 840 ; Pub. L. 115–334, title V, § 5402(c) , Dec. 20, 2018 , 132 Stat. 4675 .)