In a study conducted by Mary P. Van Hook entitled “Resolving conflicts between farmers and creditors: An analysis of the farmer-creditor mediation process,” the author took a closer look at the effectiveness of creditors rights mediation in the influx of farmer-creditor cases throughout the country in the wake of severe economic hardship. Van Hook reiterates that due to the complexity of the situation and the prevalence of such cases, many states ruled that mediation should be the first option before further action is taken on behalf of the creditors who are owed money. Since many of the farmers involved simply did not have the equipment and supplies needed to grow the crops, get paid and pay back what they owed, tension was high in many of the cases and mediation was the most likely method of alternative dispute resolution to ease it.

Focusing her study on identifying what aspects of the mediation process made this a useful way to resolve the issues between farmers and creditors, Van Hook conducted analysis of the responses of creditors and farmers who had been through the creditor’s rights mediation process. From these responses, she was able to glean a list of ‘best practices’ for mediators when dealing with any type of creditor’s rights dispute.

Of these best practices, “impartiality and the ability to help both parties present their case emerged as important for all three parties.” According to Van Hook, helping both parties present their case required the mediator to “exercise the control needed to prevent any one party from dominating as well as make participants feel comfortable.” Additionally, she noted that many farmers involved in the process “indicated that experiencing the mediator’s concern was helpful.”

Regarding the credibility of the mediator, both the creditor and the debtor in most mediation sessions studied stated that “knowledge of financial issues was important.” This reiterates the necessity of understanding the day-to-day process, including cash flow, involved with the conflict in dispute, particularly in matters related to business and enterprise.

(Note: The entire study can be found here: http://deepblue.lib.umich.edu/bitstream/handle/2027.42/51202/435.pdf?sequence=1)