The Victorian Small Business Commission (VSBC) Annual Report 2023-24, tabled in parliament today, disclosed that 64 applications were made for exemption certificates, a legal requirement before creditors can seek to recover a farm debt, almost triple the 24 applications received last financial year.
“We assist farmers to confidentially sit down with creditors and negotiate a way forward,” Victorian Small Business Commissioner Lynda Mc-Alary Smith said. “I strongly encourage farmers experiencing financial stress to get in touch with us. 94% of mediations we held this financial year resulted in an agreement.”
The Farm Debt Mediation Act 2011 requires farmers and their creditors mediate, or attempt to mediate, farm debt arrears to the satisfaction of the Victorian Small Business Commissioner.
38 applications had been made for mediations between farmers and their creditors, more than double the previous year’s 18 applications.
“Creditors and farmers have been successful in working out practical solutions through good-faith mediations held by the VSBC.” Commissioner McAlary-Smith said.
“Farming communities are facing challenging times - from weather events through to increasing costs reducing margins. I hear it when visiting local communities and I see it in the cases that come across my desk.”
“I strongly encourage Victorian farmers concerned about their financial situation to contact the Victorian Small Business Commission as early as possible. We’re here to help and our assistance is confidential.”
The Victorian Small Business Commission can be reached on 1800 878 964 or vsbc.vic.gov.au
The Rural Financial Counselling Service can be contacted on 1300 771 741.
Contact details:
Nick Edrington, 0459 542 115, nick.edrington@vsbc.vic.gov.au