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Minnesota dairy farmer takes Hastings Creamery to court over unpaid milk

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Minnesota dairy farmer takes Hastings Creamery to court over unpaid milk


HASTINGS, MINN. – The demise of a historic creamery that burned down this fall reached the county courthouse on Friday, with an attorney for a Minnesota dairy farmer — allegedly stiffed by the creamery in its waning days — asking a judge to block a bank from cashing milk checks.

“The creamery was buying milk and not paying my client,” John Giesen, attorney for Valley Acres Dairy, told Dakota County District Judge Ann Offermann.

Valley Acres Dairy, of Lewiston, Minn., filed a lawsuit in September, days after the legendary Hastings Creamery was lost in an overnight fire. The creamery had financially hobbled through the summer after the Metropolitan Council kicked the creamery off the city sanitation system for dumping raw milk into the sewer.

Court records filed by Glenwood State Bank, the creamery’s creditor, suggest the creamery’s ownership group, four farmers from Otter Tail County, had defaulted on millions of dollars in loans. In August, according to affidavits and court testimony on Friday from the dairy farmer, the bank cut off funds for the creamery to pay producers, causing the creamery to close.

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“They didn’t shut down with a lot of money in the piggy bank,” Jim Lodoen, attorney for the creamery, told the court.

But missing payments to the dairy farmers, who were left without any place to sell their milk, were put in an increasingly strained financial position, Valley Acres said in affidavits.

In text messages filed to the court, Carey Tweten, owner of Valley Acres, was contacted via text message by Justin Malone, the former CEO of Hastings Creamery, asking about payment for milk deliveries.

“Did you get your checks yesterday?Malone asked on July 6.

“No I did not,” Tweten replied.

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Later that day, Tweten wrote, “Not sure we have anywhere for the milk to go today[.]”

According to court records, Valley Acres Dairy started shipping milk in July to a creamery in nearby Altura.

While the plaintiff alleges Hastings Creamery owes the dairy more than $800,000 for missing payments, Friday’s temporary injunction dispute centered around four checks sent to the creamery from buyers of Hastings’ products. Tweten’s attorney asked the judge to freeze those assets. But the bank, creamery and former creamery owners have argued against the injunction, which they call an “extraordinary” measure this early in the process.

Hastings Creamery is facing at least one more lawsuit, filed by an Altura-based dairy farmer, who argues the creamery errantly deducted $600,000 from his pay for hauling milk. In that lawsuit, as in Valley Acres’ suit, the creamery’s former owner, Justin Malone, argued that a down cycle in the milk market necessitated the shift in hauling fees and payment rates beginning in the spring of 2023.

Last year marked a tumultuous year for dairy producers across Minnesota and the U.S. The price of milk bottomed out and, by December, dozens of milk licenses were voluntarily rescinded.

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Asked on the stand Friday about last year, Tweten said, “It wasn’t a good time to be a dairy farmer.”

Just a couple miles from the courthouse, the damaged creamery has yet to be fully cleaned up. John Hinzman, Hastings’ community development director, said the city has had “very limited conversations” with the creamery, which was open for 110 years, since the fire occurred.

After the creamery’s attorney on Friday played-out how sellers to a business might normally secure missing revenue, Judge Offermann underscored the distinction in this instance, interjecting that was the case “in a situation that the business isn’t burned down.”



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Minnesota sues to block Trump administration’s withholding of Medicaid funds

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Minnesota sues to block Trump administration’s withholding of Medicaid funds


Minnesota on Monday sued President Donald Trump’s administration in an attempt to stop it from withholding $243 million in Medicaid spending, warning it may have to cut health care for low-income families if the funding is held back.

The lawsuit asked a U.S. court in Minneapolis to issue a temporary restraining order to block the withholding for Medicaid, which is the health care safety net for low-income Americans.

The move came after Vice President JD Vance said last week the administration would “temporarily halt” some Medicaid funding to Minnesota over fraud concerns, as part of what he described as an aggressive crackdown on misuse of public funds.

Minnesota Attorney General Keith Ellison said his office has a strong track record of fighting Medicaid fraud and has won more than 300 convictions and $80 million in judgments and restitutions during his time in office.

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“Trump’s attempts to look like he’s fighting fraud only punish the people and families who most need the high-quality, affordable healthcare that all Minnesotans deserve,” Ellison said in a statement. “As long as I am attorney general, I will do everything in my power to defend our tax dollars, both from fraudsters and from the Trump administration’s cruelty.”

The lawsuit names the Department of Health and Human Services and the Centers for Medicare and Medicaid Services as well as Dr. Mehmet Oz, in his official capacity as CMS administrator, and Robert F. Kennedy Jr. in his official capacity as HHS secretary.

The Department of Health and Human Services, which includes CMS, didn’t immediately return messages seeking comment late Monday.

The threatened cuts amount to roughly 7% of Minnesota’s quarterly Medicaid funding, Ellison’s office said in a news release. Minnesota could be required to significantly cut health care services for low-income families or other government services if the cuts take effect, it said.

Medicaid, which is known as Medical Assistance in Minnesota, provides health insurance to 1.2 million Minnesotans who would otherwise be unable to afford it. A family of four may qualify for Medical Assistance with an income at or under $42,759, the attorney general’s office said.

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The lawsuit said the administration violated due process procedures because it was taking hundreds of millions of dollars without proving Minnesota’s noncompliance with Medicaid regulations through discovery and an evidentiary hearing.

It alleged the administration failed to provide Minnesota with details about its decision, in violation of federal law. It cited legal precedents, including one that said Congress may impose conditions on states’ acceptance of federal funds, but “’the conditions must be set out unambiguously.’”

Minnesota’s complaint further charged the administration violated the Constitution because the withholding imposed retroactive conditions on Minnesota’s Medicaid funding.

It said withholding the funds was arbitrary, capricious and part of a pattern of political punishment of Minnesota.

The administration said it would hold off on paying $259.5 million to Minnesota for Medicaid spending in the fourth quarter of 2025. Minnesota’s lawsuit challenges the withholding of $243 million of this money.

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Iran conflict: 250 Minnesota National Guard member serving in Middle East

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Iran conflict: 250 Minnesota National Guard member serving in Middle East


The Minnesota National Guard tells FOX 9 there are currently 250 guard members on regularly scheduled deployment at the United States Central Command areas of responsibility as the United States leads strikes in Iran.

Guardsman in Middle East

What we know:

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The Minnesota National Guard says the deployed airmen and soldiers are serving from Duluth’s 148th Fighter Wing, the Marshall-based 1-151 Artillery, and the Stillwater-based 34th Military Police Company.

What they’re saying:

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“While their missions and duty locations vary, all are grateful for the strong support of those back home,” writes Army Maj. Andrea Tsuchiya, State Public Affairs Officer for the Minnesota National Guard.

What we don’t know:

The guard did not disclose the exact bases or countries where the soldiers and airmen are serving.

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CENTCOM covers 21 countries including: Afghanistan, Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Lebanon, Oman, Pakistan, Qatar, Saudi Arabia, Syria, Tajikistan, Turkmenistan, the United Arab Emirates, Uzbekistan and Yemen.

Pres. Trump says Iran operations likely to last 4 to 5 weeks

Big picture view:

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In his first public remarks since the launch of the attack on Iran, President Trump said he expected operations to last four to five weeks, but he was prepared “to go far longer than that.”

The president also laid out his objective for the mission: to destroy Iran’s missile capabilities, to “annihilate” their navy, to ensure the country doesn’t obtain a nuclear weapon and that the regime “cannot continue to arm, fund and direct terrorist armies outside of their borders.”

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U.S.-Israeli strikes spark dueling rallies in Twin Cities

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U.S.-Israeli strikes spark dueling rallies in Twin Cities


Iranians in the Twin Cities gathered in downtown Minneapolis Sunday to celebrate major developments in the Middle East. Anti-war protesters also took the streets of Minneapolis Saturday.

Plus, Jewish communities say they are on high alert over concerns of potential retaliatory acts in major cities across the U.S.

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‘Massive moment’

What we know:

Following a joint U.S. and Israeli military operation in Iran, Khamenei was killed in an attack, Iranian state media confirmed early Sunday.

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What they’re saying:

Iranian community groups rallied at Nicollet Mall and 11th Street on Sunday to express hope for regime change.

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Dozens of Iranian-Americans said they are celebrating the news.

“We are here to support Iranian people. Today, everybody is happy, very happy,” said Beheshteh Zargaran, an Iranian-American.

“Killed Khamenei, which was the supreme leader, and hopefully they will continue this action and help Iranians finally topple the Islamic regime,” said Faraz Samavat, an Iranian-American.

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“That means a lot. We are fighting for almost half a century to destroy this cruel regime against people of Iran,” said Ali Mohammad, an Iranian-American.

The other side:

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Protesters also took to the streets in the Twin Cities over the weekend condemning the strikes.

Some people are criticizing the military operation including members of Minnesota’s DFL delegation. Congresswoman Betty McCollum called the strikes “unlawful” and Congresswoman Ilhan Omar called the war “illegal and unjustified.”

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Heightened security:

Jewish communities in Minnesota say they are also on high alert following security guidance across the country to prevent potential retaliatory violence.

“A heightened sense of vigilance making sure that everybody is aware of their surroundings and that all of the protective measures are in place,” said Steve Hunegs, executive director of the Jewish Community Relations Council of Minnesota and the Dakotas.

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There are currently no known specific threats against local Jewish communities.

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