Low corn and soybean prices leave farmers struggling
According to the University of Minnesota Extension, increased financial stress has led to more requests for mediation between farmers and lenders.
The state-sponsored mediation program is designed to help financially struggling farmers avoid loan default or foreclosure.
Extension chief operating officer David Werner said low corn and soybean prices are the main reason for the increase in filings.
"We have started to see some spikes in the number of mediation notices that are coming in," said Werner.
He said there are about 800 open mediations cases right now, nearly double the total from the same period last year.
He said it's common for lenders to restructure a loan to give a farmer a more affordable payment schedule.
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