A YEAR into the Victorian Government's farm debt mediation scheme 150 farmers have received help to manage money problems.

Agriculture Minister Peter Walsh said the Government had met an election commitment by making it compulsory for banks and other creditors to offer mediation to farmers before beginning debt recovery proceedings on farm mortgages.

"As a result of the introduction of the Farm Debt Mediation Scheme, Victorian farmers now have the security of knowing that a financial institution cannot simply take possession of their property,'' he said.

"The scheme has proved its value in the first 12 months, and it will continue to be needed as farmers recover from the decade of drought and subsequent flood events.''

The Government has put $3.5 million into the scheme, which gives farmers and creditors access to a network of mediators from the Victorian Small Business Commissioner.