S.F. _____ H.F. _____ Section 1. Section 13.15, subsection 2, paragraph b, Code 1 2017, is amended to read as follows: 2 b. The compensation of a mediator shall be no more than 3 twenty-five one hundred dollars per hour, and all parties shall 4 contribute an equal amount of the cost. 5 Sec. 2. Section 654A.4, subsection 2, Code 2017, is amended 6 to read as follows: 7 2. This chapter applies to a borrower who is a natural 8 person operating a farm or any corporation, limited liability 9 company, trust, or limited partnership as defined in section 10 9H.1 . 11 Sec. 3. Section 654A.6, subsection 1, Code 2017, is amended 12 by adding the following new paragraph: 13 NEW PARAGRAPH . c. The coordinator may adopt rules 14 pursuant to chapter 17A to set a fee for filing a request 15 for mediation under this section. The filing fee shall not 16 exceed one hundred dollars, and shall be waived for any party 17 demonstrating financial hardship to the farm mediation service. 18 Sec. 4. Section 654A.7, subsection 2, Code 2017, is amended 19 by striking the subsection. 20 Sec. 5. Section 654A.11, subsection 1, Code 2017, is amended 21 to read as follows: 22 1. If an agreement is reached between the borrower and 23 the creditors, the mediator shall draft a written mediation 24 agreement, have it the mediation agreement signed by the 25 creditors and the borrower , and submit the mediation agreement 26 to the farm mediation service. 27 Sec. 6. Section 654B.1, Code 2017, is amended by adding the 28 following new subsection: 29 NEW SUBSECTION . 1A. “Coordinator” means the farm assistance 30 program coordinator provided in section 13.13. 31 Sec. 7. Section 654B.1, subsection 5, Code 2017, is amended 32 to read as follows: 33 5. “Farm resident” means a person holding an interest in 34 farmland, in fee, under a real estate contract, or under a 35 -1- LSB 1343DP (2) 87 jh/rj 1/ 4

S.F. _____ H.F. _____ lease, if the person manages farming operations on the land. A 1 farm resident includes a natural person, or any corporation, 2 limited liability company, trust, or limited partnership as 3 defined in section 9H.1 . 4 Sec. 8. Section 654B.3, subsection 1, Code 2017, is amended 5 by adding the following new paragraph: 6 NEW PARAGRAPH . c. The coordinator may adopt rules 7 pursuant to chapter 17A to set a fee for filing a request 8 for mediation under this section. The filing fee shall not 9 exceed one hundred dollars, and shall be waived for any party 10 demonstrating financial hardship to the farm mediation service. 11 Sec. 9. Section 654C.1, Code 2017, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 1A. “Coordinator” means the farm assistance 14 program coordinator provided in section 13.13. 15 Sec. 10. Section 654C.2, Code 2017, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 4. The coordinator may adopt rules 18 pursuant to chapter 17A to set a fee for filing a request 19 for mediation under this section. The filing fee shall not 20 exceed one hundred dollars, and shall be waived for any party 21 demonstrating financial hardship to the farm mediation service. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill amends Code chapters 654A, 654B, and 654C, which 26 provide for mediation affecting agricultural producers. Code 27 chapter 654A requires mediation between creditors and farmers 28 who are borrowers prior to the enforcement of a legal action to 29 collect debt. Code chapter 654B requires mediation in disputes 30 involving farmers who provide care and feeding to livestock 31 under contract. Code chapter 654C allows for mediation between 32 producers and neighbors negotiating for the construction of 33 animal feeding operation structures closer than otherwise 34 legally allowed to the neighbor’s property. Under each of 35 -2- LSB 1343DP (2) 87 jh/rj 2/ 4

S.F. _____ H.F. _____ the Code chapters, the farm mediation service conducts the 1 mediation. 2 Mediation is a method for parties in a dispute to reach 3 an accommodation prior to instituting a legal action. If an 4 accommodation is reached, the parties execute a mediation 5 agreement. If an accommodation is not reached, the mediator 6 issues a mediation release which allows a plaintiff to file a 7 claim for relief in district court. In the instance of Code 8 chapter 654C, legal action is not at issue because mediation is 9 initiated by the agricultural producer to obtain a waiver of a 10 statutory requirement. 11 Under current law, the compensation for the mediator is 12 no more than $25 per hour, and all parties contribute an 13 equal amount of the cost. The bill raises the mediator’s 14 compensation to no more than $100 per hour. 15 The bill provides that the farm assistance program 16 coordinator may adopt rules to set a fee for filing a mediation 17 request under Code section 654A.6 (mandatory mediation 18 proceedings), Code section 654B.3 (mandatory mediation 19 proceedings), and Code section 654C.2 (mediation proceedings). 20 The filing fee cannot exceed $100, and may be waived for any 21 party demonstrating financial hardship to the farm mediation 22 service. 23 Current law requires that the farm mediation service, after 24 receiving a mediation request for a dispute between a creditor 25 and a farmer who is a borrower, notify the borrower that legal 26 assistance may be available without charge through the legal 27 assistance for farmers program provided in Code chapter 13. 28 The bill eliminates this requirement. 29 Code chapter 654A applies to a borrower operating a farm 30 who is a natural person, corporation, trust, or limited 31 partnership. Code chapter 654B applies to farm residents, 32 which are natural persons, corporations, trusts, or limited 33 partnerships holding an interest in farmland and managing the 34 farming operations on the land. The bill provides that a 35 -3- LSB 1343DP (2) 87 jh/rj 3/ 4

S.F. _____ H.F. _____ limited liability company may be a borrower for purposes of 1 Code chapter 654A and a farm resident for purposes of Code 2 chapter 654B. 3 Under Code chapter 654A, if a mediation agreement is 4 reached between the borrower and the creditors, the mediator 5 is required to draft a written mediation agreement, have it 6 signed by the creditors, and submit the agreement to the farm 7 mediation service. The bill requires that the borrower also 8 sign the mediation agreement. 9 The bill makes conforming changes. 10 -4- LSB 1343DP (2) 87 jh/rj 4/ 4