Nebraska regulator files complaint against The Andersons for unpaid farmer claims

Nebraska regulators announced on Thursday that they filed a complaint with the Ohio-based agribusiness, The?Andersons, over allegations of the company failing to make timely payments to a grain manufacturer. Authorities are encouraging any other farmers experiencing similar?payment delay to come forward.

The Nebraska Public Service Commission (which licenses grain dealers in the state) said that its Grain Warehouses and Dealers Department had filed the complaint following an investigation into allegations made by a producer of grain that The Andersons were not paying for 17 deliveries between November 2023 and January 2024.

Later, the company told regulators that it had held payment in an instance because it couldn't verify ownership of grain.

According to the complaint, the?producer? and The Andersons? have resolved the issue, but a spokesman for the agency said that the investigation is still?ongoing?.

The licensing department of the state, alleging The Andersons' non-compliance with state laws regulating the grain trade, has asked the commission to order that the Ohio firm explain the delays. The complaint claims that some grain deliveries were not paid for over 900 days. It also states that the department may seek civil penalties and revoke the license of the company.

The agency declined to comment on this matter further Thursday. The Andersons could not be immediately reached for comment.

The Department of Agriculture's complaint is based on a single case that was resolved. However, regulators are still seeking information from other Nebraska grain sellers or producers who may have been affected by delayed payments from The Andersons and other licensed grain dealers.

Terri Fritz, Director of the Nebraska Grain Department, said in a press release that "our priority is to?protect Nebraska's grain farmers and ensure buyers meet their legal obligations." We want to know if producers aren't being paid on time.

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

The complaint is a result of the collapse last year, when Omaha-based grain broker Hansen-Mueller Co. filed for Chapter 11 bankruptcy protection in November after Nebraska regulators had suspended its grain seller license due to unpaid grain contracts.

This bankruptcy left farmers and trucking companies, as well as other agricultural businesses,?seeking more than $200,000,000, while the company's state grain dealer bond of $1 million covered only a portion?of approved claims from Nebraskan farmers.

Industry groups and regulators said that the Hansen-Mueller Case highlighted the financial risks farmers face when grain sellers become insolvent, especially during times of economic stress. Reporting by P.J. Huffstutter. Editing by Liz Hampton & Aurora Ellis

(source: Reuters)