The cost of everything, including farm supplies, seems to be going up. 

When a producer reached out to us about some debts recently, she was feeling overwhelmed about how to pay them off, especially with interest rates rising. 

One of our credit counselors shared some tips for negotiating the debts with a creditor. Using the tips below, the producer successfully negotiated a significant reduction in the amount owed during calls with creditors.

"The producer was quite nervous, but after the first call, she changed from nervous to excited and continued to handle two more calls," the credit counselor said. "She was able to turn down offers from the creditors until she could obtain a more reasonable settlement. It was a delight to watch her mature in her experience and move from fear to excitement."

In our experience, it is not unusual for some debts that have gone to collection to settle at a substantial discount. Debts can often be reduced because collection centers get a commission for closing the debt, even at a fairly low amount. This is not a rule, and some debtors or collection centers seem unwilling to budge on the amount due or rates, but it canʻt hurt to try.

If you're struggling with debt, you're not alone. According to the U.S. Department of Agriculture, farm sector debt is nearing levels not seen since the late 1970s and early 1980s. Yet, with a little bit of planning and specific actions, you can shave years off your debt repayment schedule.

The California Agricultural Mediation Program can help either by mediating with the creditor or by providing credit counseling. There are important differences between the two services. Read more to learn about what might be right for you.