South Dakota grain regulators declare victory with sale of troubled elevator

PIERRE, S.D. — Grain elevator regulators in South Dakota are praising state employees for rescuing a financially troubled co-op.

The South Dakota Public Utilities Fee mentioned in a brand new launch on Wednesday, April 13, that it’s wrapping up the receivership of Farmers Cooperative Elevator of Avon with no losses to producers or collectors.

After promoting a portion of the co-op, together with the grain elevator, agronomy enterprise and bulk gas enterprise, to Delight Grain in late March, all producers and collectors have been paid in full.

As well as, via the receivership and sale, no jobs had been misplaced, the PUC launch mentioned. Delight Grain, with has places in Lengthy Pine, Nebraska, and Martin, South Dakota, saved the workers that labored on the elevator and agronomy entities and plans so as to add extra jobs. All different workers had been retained by Farmers Cooperative Elevator, which is able to proceed to function the gas retailer and feed retailer.

“PUC employees did an excellent job of stepping right into a administration function with a financially struggling grain purchaser, working with a number of events to herald sufficient money to guarantee that all farmers had been paid for his or her grain, and in the end discovering a purchaser for the power to maintain that grain shopping for service locally,” PUC Chairman Chris Nelson mentioned in a information launch. “I commend PUC employees and the board of the Avon Farmers Cooperative Elevator for working collectively for this consequence.”

The PUC, via its Grain Warehouse Program, gives oversight of the state’s grain storage warehouses and grain consumers, licensing certified warehouses and consumers and analyzing their monetary situation to guard funds to grain producers. By its common inspection course of, the PUC mentioned employees acknowledged in 2019 that the Avon elevator was in monetary bother.

A courtroom granted the PUC receivership restricted to regulate of the grain elevator, which might permit the cooperative to proceed working the comfort retailer, farm retailer and fertilizer plant, whereas using grain belongings to pay grain-related debt.

Over 9 months, PUC secured funds of excellent money owed to the elevator and located a licensed grain purchaser to lease the cooperative’s grain services which finally led to the sale of the grain facility to Delight Grain. The method additionally included the PUC disbursing the Avon elevator’s grain purchaser bond to eligible producers.

State banking director Bret Afdahl additionally appreciated the PUC’s work with the elevator. “Thanks for your whole work on the elevator in Avon,” Afdahl mentioned within the launch. “I simply acquired an replace on the sale, and that’s the absolute best consequence for the group and surrounding space.”

The PUC will proceed its function as receiver whereas it winds up the remaining particulars and finishes among the collections. This consists of one chapter continuing during which Farmers Cooperative Elevator is the biggest unsecured creditor.