Nebraska regulator dismisses The Andersons' complaint about unpaid farm claim

The Nebraska regulator dismissed the complaint filed against the Ohio-based agribusiness, 'The Andersons'. Allegations were made that the company had not paid a farmer on time.

The Nebraska Public Service Commission, which is responsible for licensing commercial grain dealers, has said that its Grain Warehouses and Dealers Department, which investigates grain producers' allegations, filed the complaint on August 6, after a review of a producer's claim that the Andersons were not paying for 17 grain deliveries between November 2023 and January 2024. The state regulator also encouraged any farmers who have experienced similar delays in payment to come forward.

U.S. farmers are under increasing financial pressure because of surging production costs. This includes record-high diesel price that has?squeezed their thin margins. State regulators are scrutinizing grain purchasers more closely after several dealer failures that have occurred in the'recent years, leaving producers with unpaid contract.

According to a copy reviewed by the, the Andersons and producer both said on Tuesday that this matter was resolved. No other complaints were received against the company by the state regulators. According to the document, the Andersons have agreed to pay $5,000 administrative fines and deny the violations.

On Tuesday, the company was not available to comment.

Terri Fritz, director of the grain department, stated in a press release that "our priority is to ensure Nebraska's grain law is followed and producers are protected according to statutes." "We are satisfied that all the issues which led to the complaint have been resolved, and that this agreement is an appropriate resolution allowing us to put the matter behind us."

The Andersons of Maumee in Ohio is licensed in Nebraska as a grain dealer. The company, which is one of the biggest ethanol producers in the United States, sells bulk grains and operates a network of grain-elevators.

The complaint followed the collapse of Omaha-based grain broker Hansen-Mueller last year, who filed for Chapter 11 bankruptcy in November after Nebraska regulators had suspended their grain dealer license due to unpaid grain contracts.

(source: Reuters)