VERMONT AGRICULTURAL MEDIATION PROGRAM

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1 VERMONT AGRICULTURAL MEDIATION PROGRAM Julie Hoyt

2 What is VTAMP Vermont Agricultural Mediation Program USDA state certified agricultural mediation program Obtained certification 2007 Administered through the Environmental Mediation Center, a New England based dispute resolution center with years of experience in environmental dispute resolution New Hampshire, Hawaii and California (launched 2016)

3 Help for the Agricultural Community Agricultural producers Their creditors; and Those directly affected by the actions of a USDA agency To address: Adverse Decisions from any USDA Agency Loan and Credit Issues; and Various other agricultural disputes

4 Agricultural Issues/Disputes Adverse decisions from a USDA agency-- NRCS, FSA, RD Farm and Rural Development loans Pesticide Issues Environmental Issues Conflicts with non-farm neighbors Entity and Transition Issues with Agricultural credit or USDA agency contractual obligations Wetlands determinations Crop Insurance Disputes that impact financial viability of a producer

5 How Much Does Mediation Cost? It s Free to the Agricultural Community in Vermont Mediators with years of experience and a background in agriculture

6 Conflicts Specific to the Ag Community CREDIT Water pollution-surface and ground increased scrutiny with TMDL and VAAFM focus Land degradation- erosion, compaction, depletion, contamination Land purchase, lease-- where is it? How to access it Contracts- written or oral for access to land Animal issues- wildlife protection, animal welfare

7 What We Are Seeing in the Ag Community The tighter credit environment is creating stress on both producers and suppliers The longer people wait to try and work things out, the fewer the options Usually more than one creditor owed Mediation helps parties expand their options and find workable, creative solutions

8 Agricultural Disputes Usually grows out of ordinary circumstances Negatively impacts quality of life financial and emotional strain and interferes with operation of business Often there is no right and wrong Usually easier to manage if addressed early, the longer you wait the larger the problem becomes

9 Vermont Right to Farm Law It is conducted in conformity with federal, state, and local laws and regulations; It is consistent with good agricultural practices; It is established prior to surrounding nonagricultural activities; and It has not significantly changed since the commencement of the prior surrounding nonagricultural activity.

10 Working with Neighbors Right to farm vs. Cost of Land Acquisition Amount of land needed for grazing/pasture based operations barrier to entry Ownership vs. Leasing Written leases can minimize conflict and increase access to funding Must have longer term lease to access variety of state/federal grant and financial programs (3-5 years depending on program)

11 Producer Lender Agency Issues Wetlands determinations Collateral leverage Rural water loan programs Grazing on public lands Compliance with farm programs (AAPs, BMPs, Forestry plans, Conservation easements water quality is an increasing area of interest) Value-added products economic/regulatory

12 Common Pitfalls Agency adverse determination, cash flow issue, neighbor dispute generally do not get better Not requesting mediation or appealing Failure to Communicate single biggest issue that creates ill will Without exception in debt situations lasting 6 months or more every creditor has noted borrower stopped returning calls leading to a negative emotional response

13 The Basics USDA agencies participate in mediation as part of an informal appeals process Producer cannot be compelled to participate in mediation (in foreclosure cases the VTAMP process does not affect state law requiring mediation before foreclosure) Participants can both formally appeal an adverse decision under the NAD and request mediation from VTAMP Successful mediation waives all appeal and judicial rights

14 Adverse Decision Timeline 30 day deadline to request appeal to National Appeals Division (NAD) of an adverse decision Participant also has the right to request VTAMP mediation If requested prior to filing an NAD appeal, the 30 day deadline is suspended until after the mediation is concluded; but participant must file within the remaining 30 day window if mediation is unsuccessful Adverse decision 4/15; requests mediation 4/30; participant will have only 15 days after mediation ends

15 Benefits of Mediation for Producer Opportunity to review requirements of a particular contract or program with local agency personnel familiar with the situation Ability to coordinate with other resources to assist distressed producers or provide technical assistance e.g. Farm Viability, UVM Extension, Family First Local state and federal agencies may have more discretion and flexibility to address the issue

16 Regulatory Flexibility In many regulatory issues local agency has far greater discretion, access to programs, ability to modify or seek a variance than on the regional or national level Once a credit issue moved up the regulatory ladder, options become very limited and cannot be changed Once debt is entered into USDA National Finance Debt Center, payment must be made within 30 days; failure to address will lead to debt being transferred to US Treasury. Collection under Debt Collection Improvement Actincludes garnishing tax refunds and Social Security

17 Advantages of Mediation Provides an informal and impartial setting to discuss issues Allows the parties to devise tailored solutions Restores communication and relationships May save parties time and money Even without resolution, may narrow or define issues

18 Mediator s Role Create safe space for discussions Absorb heat, reflect light Focus on interests Stimulate discussion to generate options Have parties prioritize interests for productive negotiation

19 Matt Strassberg Julie Hoyt VTAMP Program 177 Paddy Hill Road Moretown, VT (802) ext Contact Information

1/12/2017. The Road to RAPs. Annette Higby. . Attorney at Law Randolph, VT

1/12/2017. The Road to RAPs. Annette Higby. . Attorney at Law Randolph, VT The Road to RAPs Annette Higby. Attorney at Law Randolph, VT. 1 The Road to RAPs 1972 Federal Clean Water Act Point Sources Permits and technological controls Non point sources left to the states. The