AUSTRALIAN Bankers' Association (ABA) chief executive officer Steven Münchenberg, says it's time a farm debt mediation scheme is rolled out nationally.
Mr Munchenberg was speaking after one of the regular meetings the association and bank representatives have with regional MP's.
"We thought it would be useful to get together with all the banks to talk through some of the issues they were seeing on the ground," Mr Munchenberg said.
He said Mallee MP Andrew Broad had raised issues such as multi-crop insurance, as a way of managing risk.
A national farm debt mediation (FMD) scheme had also been raised.
"The industry has also long supported development of a national farm debt mediation scheme - we have got legislation in Victoria and NSW and we see merit in making that national," Mr Munchenberg said.
"We think it would be a good step forward, it's worked well in those jurisdictions that have it - sometimes, in the relationship between the bank and the customer, its good to have an objective third party come in and see if something can't be sorted out.
"We have a strong preference to keep people on their property, having to foreclose on a farm is a failure for us, as well as the customer."
Mr Broad said it would be good to extend the debt mediation scheme, currently operating in Victoria, nationwide.
"Agriculture is one of those careers where everything can be going well, and you can be fine - even one of the best farmers - and the season can turn against you, and you can go broke," Mr Broad said.
Mr Munchenberg said a farm debt mediation scheme enabled all parties to be clear about their rights and responsibilities.
"The Minister, Barnaby Joyce is on board and we understand there is work in train to make it happen.
"It's widely recognised we need a consistent scheme, across the country and NSW and Victoria provide a model for us, so we don't need to keep reinventing the wheel - lets get this in place, as soon as possible."
A spokesman for Mr Joyce said the government believed a national approach to farm debt mediation was needed to ensure all farmers were working on a level playing field.
The minister had set up a working group to progress a national FDM scheme, whereby farmers and their financiers could work through a formal dispute resolution process.
The working group included representatives from the National Farmers Federation (NFF) the Rural Financial Counselling Service (RFCS) the ABA, banking and finance sectors, state government agriculture departments and other rural stakeholders.
The government was currently considering options identified by the working group for a nationally consistent FDM approach, and looking at how they could be implemented. Currently New South Wales and Victoria have legislated debt mediation schemes in place, and Queensland and some other states have voluntary debt mediation schemes.
Mr Joyce had been working closely with the banking sector to ensure it continues to support customers for the long-term future of farming communities.
The government would continue to encourage banks to be fair, decent and patient with farmers.
