*This story has been revised from the original version posted March 2. It originally stated a $4.9 billion dollar lawsuit was filed. After reviewing court documents, it has been updated to show that it was a $4.9 million dollar lawsuit filed against Vreba-Hoff Dairy Development.*
AgStar Financial Services is seeking foreclosure and alleging breach of contract against Vreba-Hoff Dairy Development and many of the Ohio farms Vreba-Hoff has advised.
According to the court documents, the $4.9 million dollar lawsuit was filed Jan. 19 and appears to be an attempt to recoup money loaned to various Ohio dairy farms developed by Vreba-Hoff Dairy Development.
AgStar Financial Services loaned individual dairy farms funding, which was obtained through Vreba-Hoff Dairy Development LLC. According to the court documents, John H. Vander Hoff, who is listed as manager of Vreba-Hoff Dairy Development, signed many of the loan agreements.
Other defendants include Wilhelmus Van Bakel, John H. Vander Hoff, Dirk Swier Maat, Waste Galore, Inv., First National Bank, Clair W. Harting, MacAllister Machinery Co., Lou Ann Wannemacher, Beverly A. Fuerst, Dennis M. Cox, Wild Cat Farms, LLC. and another finance company, Rabo Agrifinance, Inc.
The documents filed show loans unpaid for the purchase of cattle, feed and equipment.
This is not the first federal lawsuit filed demanding money associated with Vreba-Hoff Dairy Development.
Hopewell Dairy and Chesterfield Dairy, both dairies being run by Dutch farmers, also reportedly part of Vreba-Hoff Dairy Development, are in bankruptcy court and were placed into receivership by a bankruptcy judge Sept. 30, 2009.
The court action was part of a lawsuit also filed by AgStar Financial Services. According to the U.S. Bankruptcy Court, Northern District of Ohio, Hopewell Dairy owes over $21 million to creditors,
According to the federal court docket, all three lawsuits are scheduled for case management hearings March 15 in Toledo.
Maple Grove Dairy, another dairy that had been part of Vreba-Hoff Dairy Development, was sold at a bankruptcy auction.
An auction to sell off the assets of Maple Grove Dairy was held Dec. 16 in the milking parlor of the farm.
It was owned by Rinke Oenema, a 1 percent interest by Afke Oenema-Hiemstra, and Vreba-Hoff Dairy Development, LLC.
It was sold for $1.4 million and the personal property brought almost $400,000
Maple Grove Dairy owed $7.14 million, of which $4.59 million was owed to AgChoice Farm Credit.