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 Needs January 2010 ResponsesTopic 8Information on MFAN (Minnesota Farmer Assistance Network). This new program provides business and financial guidance at no cost to Minnesota farm families facing economic hardship 7Information and update on the Farmer-Lender Mediation program 6Working with farm families under stress, communicating under pressure, learning and understanding the 5 stages of the Grief Cycle (shock and denial, anger, depression and detachment, dialogue and bargaining and acceptance)

3. ResponsesTopic 6Price/risk management -- milk contracts, options, futures, Margin management (includes some combination of options, futures, gross livestock margin insurance, purchasing or contracting inputs, or having a larger cash reserve) 8Tax Implications of Farm Liquidation, Debt Forgiveness and Bankruptcy 6Looking at Financial Data such as FINBIN information compiled at the U of MN Center for Farm Financial Management. What are the key profitability indicators? Lender Survey Highlighted Needs January 2010

4. ResponsesTopic 5Managing costs on the dairy farm including feed cost, feed cost ratios, feed cost calculators (spreadsheets on the web) 5Sound dairy investments that make sense for a particular dairy operation. Focusing/prioritizing facilities. Is it needed? Is it well designed? Will it improve labor efficiencies and/or profitability? Lender Survey Highlighted Needs January 2010

5. FARMER LENDER MEDIATION PROGRAM Executive 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 20082009% inc. / dec. Number of notices received 2,002 3,107 +55% Creditors with a secured debt of more than $5,000 against an agricultural property must offer Farmer-Lender Mediation before proceeding with foreclosure, repossession, cancellation of contract, or collection of a judgment. The number of notices of secured debt increased dramatically in 2009, and has increased 85.6% since 1999. Source: Comparative Report, Farmer-Lender Mediation Service, U of M Extension Retreived 2/5/10 from http://www.extension.umn.edu/community/Mediation/summary.html

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.usmfan.mda@state.mn.us Website: www.mda.state.mn.us/mfanwww.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 Series http://www.extension.umn.edu/ToughTimes/dealing-with-stress-resources.html eXtension http://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 MFAN Flyer distributed state wide News releases promote awareness of issues & other resources Helping Professionals across state informed of issues & resources Ag professionals (seed dealers, elevators, implement dealers, etc) informed of issues & resources Farm family member or concerned individual makes call to MFAN MFAN Intake Staff Assesses Needs with Caller Ag-related needs identified Family-related needs identified Crisis issues identified

36. Referral to Crisis Connection & others as needed

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

39. Thank you! Questions and/or comments?