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Rural mortgages and farm debt mediation
Farms are typically located in rural areas, and most farmers would have, or have had, a mortgage. The most common scenario is that a loan, secured by a mortgage, is needed for funds to purchase the farm, to provide finance for carrying on farming activities, or to purchase livestock or farming equipment.
The ordinary laws of creditor and debtor, and of mortgagee and mortgagor apply to the provision of finance by a bank or other lender to a person engaged in agricultural production. However, some Australian jurisdictions have legislation that sets out certain procedures to be followed where issues arise in relation to a farmer’s inability to meet his or her obligations under a mortgage. For example, in New South Wales, this is the Farm Debt Mediation Act 1994 (NSW), and in Victoria, the relevant legislation is the Farm Debt Mediation Act 2011 (Vic). This guidance note outlines the relevant legislation so legal practitioners can be aware of them when advising on matters relating to rural mortgages.
See Rural mortgages and farm debt mediation.
