REYNOLDSBURG, Ohio — Farmers owed money from the Archbold Elevator are getting it back.
Money released
The Ohio Controlling Board voted July 11 to release over $3.4 million to the farmers after operations came to a halt at the Archbold Elevator.
The total amount to be paid out is $3.408,234.
A total of 85 claims were submitted this included claims farmers and marketing program payments.
The Ohio Corn Growers Association will be receiving $1,138, the Ohio Soybean Council will reap $4,319 and the Ohio Wheat Growers Association will be getting $115.
Archbold Elevator, Inc. is located at 3265 County Road 24 in Archbold, Ohio.
The largest claim reportedly submitted was for $307,100.
What happened?
The cause as to what happened to the missing grain at Archbold Elevator is still under investigation, according to the Ohio Department of Agriculture.
Following an examination the week of April 5, ODA examiners determined that Archbold Elevator held liabilities significantly higher than its available assets and were short at least 50,000 bushels of corn.
According to the ODA, it remains unclear as to how much money is missing.
Liquidation
An investigation by ODA is trying to determine what the liabilities and assets are for the company. The court has appointed a receiver and is liquidating the company’s assets.
The grain license for Archbold Elevator Inc. remains suspended and they are not in operation.
Archbold Elevator was reportedly audited in 2010 and showed no problems.
Fund created
Ohio’s Grain Indemnity Fund was created to reimburse farmers when a licensed elevator becomes insolvent. Ohio farmers lost approximately $8 million due to grain elevator bankruptcies prior to the establishment of the fund in 1983.
Since the fund was established, it has reimbursed farmers more than $8.5 million and is funded through a half-cent per bushel assessment on grain marketed at licensed elevators. In 2004, the indemnity cap was increased from $8 million to $10 million, and the half-cent assessment was collected from July 2004 through June 2006.
Full coverage
The fund provides 100 percent coverage for storage grain, grain payables less than 30 days, deferred payments up to 90 days with a signed agreement, and insufficient fund checks, provided the claim is approved.
The fund provides 100 percent coverage for the first $10,000 and 80 percent of the balance for delayed price grain, basis grain, 31- to 365-day grain payables without deferred payment agreement, and 91- to 365-day deferred payments with agreement.
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