FARMERS in Victoria's north west are being hit by a "tsunami'' of debt recovery, according to federal Mallee MP John Forrest.
In federal parliament today, Mr Forrest accused "hairy-chested'' financial lenders of moving too quickly on farm foreclosures to retrieve loans through a fire-sale.
This left farmers with no control over the sale, little chance of retrieving any equity, and "no dignity whatsoever''.
There had been a lot of emotional trauma, including a suicide some years ago, Mr Forrest said.
Farmers had to accept some of the responsibility for getting too far into debt, but they should be "treated with dignity'' when they got into trouble, he said.
Mr Forrest said he had been pleading with lenders, who had a legitimate right to recover debt, to allow bankrupt farmers to conduct their own sales.
"I demand my constituents be treated with dignity,'' he said.
Mr Forrest said there were protocols in place for dealing with mortgage debt in Victoria, but none for commercial lending.
NSW laws required lenders and commercial borrowers to negotiate around the "kitchen table'', with farm owners able to run their own auction, and this should be the approach taken in Victoria, he said.
