Latest news with #BensonHill
Yahoo
28-03-2025
- Business
- Yahoo
St. Louis-based Iowa grain dealer files for bankruptcy, farmers to seek state payments
Trucks deliver harvested grain in western Iowa. (Photo by Jared Strong/Iowa Capital Dispatch) A St. Louis-based company with an Iowa grain dealer license has filed for Chapter 11 bankruptcy. Iowa farmers with unpaid grain sold to Benson Hill Holdings, Inc. prior to March 20, can file a claim for indemnity, according to the Iowa Department of Agriculture and Land Stewardship. Don McDowell, communications director for IDALS, said the department is not 'immediately aware' of any affected farmers. The grain indemnity fund will pay farmers 90% of their loss, up to $300,000, though claims related to Benson Hill must be mailed or personally delivered to IDALS's Grain Warehouse Bureau by July 18. The fund was established by the Iowa Legislature in 1986 and accrues via a per-bushel fee on purchased grain and fees on licensed warehouses and grain dealers. According to minutes from the Iowa Grain Indemnity Fund Board, the balance of the fund as of Feb. 19 was $8.4 million. Benson Hill filed for Chapter 11 bankruptcy March 20 and has up to $11 million in debtor-in-possession financing to continue its day-to-day operations. Christi Dixon, a spokesperson for the seed innovation company, said it is 'restructuring' its finances. 'We will continue to meet our contractual commitments and support key farmers without interruption,' Dixon said in an email. Dixon said the company maintains a seed processing facility in Bondurant and employs seven people in Iowa. Benson Hill previously owned a soy processing facility in Creston, but sold the facility in February 2024 to White River Nutrition. McDowell said the grain license for Benson Hill included locations in Cherokee and Galva. In 2023, the grain indemnity fund fell below its minimum threshold, which triggered the farmer-paid fees to support the fund, after nearly 30 years without needing to fill the fund. It also triggered legislative efforts to reform the grain indemnity fund to reflect modern farming practices and pricing. The efforts have stalled out in the past due to disagreements on including credit-sale contracts, which are currently excluded from the fund. House legislation introduced this year, would increase the fund's minimum from from $3 million to $8 million, and its maximum from $8 million to $16 million. It would also extend protections to farmers with credit-sale contracts, but would only reimburse these contracts at 70%. The bill is not yet eligible for floor debate in the House and could be killed by the upcoming April 4 'funnel' deadline if it does not advance to the Senate and through committee. The Senate version of the bill would increase the minimum and maximum to $5 million and $12 million, respectively, and would include credit-sale contracts as transactions covered by the fund. The Senate bill is eligible for floor debate. This article was originally published by Iowa Capital Dispatch, a States Newsroom affiliate. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
27-03-2025
- Business
- Yahoo
Iowa grain dealer files for bankruptcy; farmers can file for indemnity for 120 days
Trucks deliver harvested grain in western Iowa. (Photo by Jared Strong/Iowa Capital Dispatch) A St. Louis-based company with an Iowa grain dealer license has filed for Chapter 11 bankruptcy. Iowa farmers with unpaid grain sold to Benson Hill Holdings, Inc. prior to March 20, can file a claim for indemnity, according to the Iowa Department of Agriculture and Land Stewardship. Don McDowell, communications director for IDALS, said the department is not 'immediately aware' of any affected farmers. The grain indemnity fund will pay farmers 90% of their loss, up to $300,000, though claims related to Benson Hill must be mailed or personally delivered to IDALS's Grain Warehouse Bureau by July 18. The fund was established by the Iowa Legislature in 1986 and accrues via a per-bushel fee on purchased grain and fees on licensed warehouses and grain dealers. According to minutes from the Iowa Grain Indemnity Fund Board, the balance of the fund as of Feb. 19 was $8.4 million. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Benson Hill filed for Chapter 11 bankruptcy March 20 and has up to $11 million in debtor-in-possession financing to continue its day-to-day operations. Christi Dixon, a spokesperson for the seed innovation company, said it is 'restructuring' its finances. 'We will continue to meet our contractual commitments and support key farmers without interruption,' Dixon said in an email. Dixon said the company maintains a seed processing facility in Bondurant and employs seven people in Iowa. Benson Hill previously owned a soy processing facility in Creston, but sold the facility in February 2024 to White River Nutrition. McDowell said the grain license for Benson Hill included locations in Cherokee and Galva. In 2023, the grain indemnity fund fell below its minimum threshold, which triggered the farmer-paid fees to support the fund, after nearly 30 years without needing to fill the fund. It also triggered legislative efforts to reform the grain indemnity fund to reflect modern farming practices and pricing. The efforts have stalled out in the past due to disagreements on including credit-sale contracts, which are currently excluded from the fund. House File 508, introduced this year, would increase the fund's minimum from from $3 million to $8 million, and its maximum from $8 million to $16 million. It would also extend protections to farmers with credit-sale contracts, but would only reimburse these contracts at 70%. The bill is not yet eligible for floor debate in the House and could be killed by the upcoming April 4 'funnel' deadline if it does not advance to the Senate and through committee. The Senate version, Senate File 608, would increase the minimum and maximum to $5 million and $12 million, respectively, and would include credit-sale contracts as transactions covered by the fund. SF 608 is eligible for floor debate. SUPPORT: YOU MAKE OUR WORK POSSIBLE
