State Mediation Grants

To assist States in establishing and administering mediation programs and services for agricultural producers, creditors of producers, (as applicable) and persons involved in an issue for which mediation services are provided by a Certified Mediation

States meeting conditions specified in this part may have their mediation programs certified by the Farm Service Agency (FSA) and receive Federal grant funds for the operation and administration of agricultural mediation programs.

States (including the District of Columbia), State-Related Institutions of Higher Education, Public/State Controlled Institutions of Higher Education, State Governments, County Governments, and Non-Profit entities.

Grants made under this part will be used only to pay the allowable costs of operation and administration of the components of a qualifying State's Certified Mediation Program that have been certified as specified in §785.3(a)(2). Costs of services other than mediation services to covered issues and covered persons within the State are not considered part of the cost of operation and administration of the Certified Mediation Program for the purpose of determining the amount of a grant award. Specific categories of costs allowable under the State's Certified Mediation Program include, and are limited to: (§785.4(c)(1)) Subject to applicable cost principles in 2 CFR 200, subpart E, allowable costs for operation and administration are limited to those that are reasonable and necessary to carry out the State's Certified Mediation Program in providing mediation services for covered persons within the State.

Grant funds will be paid in advance, in installments throughout the Federal fiscal year as requested by a State's Certified Mediation Program and approved by FSA. The initial payment to a Certified Mediation Program in a qualifying State eligible for grant funding as of the beginning of a fiscal year will represent at least one-fourth of the State's annual grant award. The initial payment will be made as soon as practicable after certification, or re-certification, after grant funds are appropriated and available.

Certification by the Administrator, FSA, that the Certified Mediation Program meets the requirements of Section 501 (c) of Title V of the Agricultural Credit Act (Public Law 100-233) as amended; application meets requirements of 7 CFR 785.4 of the FSA regulations.

FSA will consider the following in determining the grant award to a qualifying State: (1) Demand for and use of mediation services (historical and projected); (2) Scope of mediation services; (3) Service record of State's Certified Mediation Program, as evidenced by (i) Number of inquiries; (ii) Number of requests for and use of mediation services, historical and projected, as applicable; (iii) number of mediations resulting in signed mediation agreements; (iv) Timeliness of mediation services; and (v) Activities promoting awareness and use of mediation; (4) Historic use of program funds (budgeted versus actual); and (5) material changes in the State program.

To be a qualifying State as of the beginning of a fiscal year and to be eligible for grant funding as of the beginning of the fiscal year, the Governor of a State or head of a State agency designated by the Governor of a State must submit for certification and application for a grant on or before August 1 of the calendar year in which the fiscal year begins. FSA will accept requests for re-certification and for new certifications of State mediation programs after August 1 in each calendar year; however, such request will not be considered for grant funding under §785.7 until after March 1.

Thirty days from receipt of a complete application package.

If a State is a qualifying State at the time its request is made, the written request need only describe the changes made in the program since the previous year's request, together with such documents and information as necessary concerning such changes, and a written certification that the remaining elements of the program will continue as described in the previous request.

U.S. Department of Agriculture (USDA) agencies participate in mediations pursuant to agency rules governing their informal appeals processes. Where mediation of an agency decision by a Certified Mediation Program is available to participants in an agency program as part of the agency's informal appeal process, the agency will offer a participant receiving notice of an agency decision the opportunity to mediate the decision under the State's Certified Mediation Program, in accordance with the agency's informal appeals regulations in this chapter. USDA agencies making mediation available as part of the agency informal appeals process may execute memoranda of understanding with a certified mediation program concerning procedures and policies for mediations during agency informal appeals that are not inconsistent with this part or other applicable regulations. Each such memorandum of understanding will be deemed part of the grant agreement governing the operation and administration of a State certified mediation program receiving Federal grant funds under this part.