The state government is pushing for mandatory farm debt mediation to assist SA farmers resolve their financial problems.
It would bring SA farmers in line with NSW, Qld and Vic, which all have similar successful legislation in place.
In Opposition, the Liberals introduced a Private Members Bill which passed the Legislative Council, but in 2017 it was blocked in the House of Assembly, by the then Labor government.
This week, Primary Industries Minister Tim Whetstone will introduce the Farm Debt Mediation Bill 2018 to Parliament, hoping to now gain the numbers.
The Bill outlines a mandatory mediation process, administered by the Small Business Commissioner before a creditor is able to foreclose on a farming operation.
“Farming can be an unpredictable and challenging industry, leaving farming families and their assets vulnerable in times of financial crisis,” Mr Whetstone said.
“However, under current rules, a farming operation can be forcibly foreclosed on without any form of negotiation – that leaves small family farm businesses vulnerable.”
Mr Whetstone says mandatory mediation, which further empowers the powers of the Small Business Commissioner, has the support of both the farming and banking sectors.
“I would encourage the Labor Opposition to support this Bill and not hang farmers out to dry,” he said.
Rural Business Support chief executive officer Brett Smith says it will safeguard farmers and outlines a fair and transparent process for all parties.
He says the current voluntary code agreed upon by the Australian Banking Association, PIRSA, SAFF and the Rural Financial Counselling Service of SA, in 2007, is outdated with SAFF no longer an entity.
“The voluntary code at moment works, but the problem we have is two fold – it relies on all parties good faith to make it work which could be problematic,” Mr Smith said.
“Our standards are not in line with other states so we have people asking why there is not the same legislation in place in SA as well.”