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Serving: OH

Ohio’s Evergreen Grain Co. has $1.3 million shortfall

RGtimeline/Getty Images truck unloading grain
CLOSED: The Evergreen Grain Co. was suspended May 13 after it was determined to be insolvent.
Farmers can seek payment through the Grain Indemnity Fund.

About 35 farmers who deposited grain with the Evergreen Grain Co. in Clyde, Ohio, will have to go through the Ohio Department of Agriculture to get paid from the Grain Indemnity Fund, as grain auditors recently found a $1.3 million financial shortfall, according to ODA.

An investigation was conducted after a farmer reported trouble receiving payment for grain delivered in March. The business was suspended May 13 after it was determined to be insolvent.

“There were previous record violations and a documented financial shortfall, but all were corrected within our compliance parameters,” says David Simmons, an ODA agriculture inspection administrator in the Division of Plant Health.

Farmers with outstanding grain obligations with Evergreen Grain Co. should call ODA at 614-728-6410 or toll free at 800-282-1955.

“The claims have to be approved by ODA’s agricultural commodity advisory committee and be authorized by the controlling board,” Simmons says. “The process typically takes between 90 and 120 days.”

Ohio’s Grain Indemnity Fund was created in 1983 to reimburse farmers when a licensed handler becomes insolvent. Since the fund was established, it has reimbursed farmers more than $17.7 million and is funded through a half-cent per bushel assessment on grain marketed at licensed elevators.

The grain indemnity fund currently holds $17.1 million in assets. “Asset liquidation of the stored grain will begin right away,” Simmons says. “ODA has the priority lien on grain and grain proceeds.”

The priority ensures the indemnity fund receives maximum reimbursement in the asset liquidation process.

TAGS: Finance
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