REYNOLDSBURG, Ohio — The Ohio Department of Agriculture announced May 26 that it found Evergreen Grain Co., in Clyde, insolvent, after discovering it was unable to cover its outstanding obligations to farmers.
Evergreen Grain was suspended May 13 to prevent more outstanding obligations and so that the state can address the situation through the Grain Indemnity Fund.
In March, a farmer who was having trouble collecting payment for deposited grain alerted the department to potential financial problems at Evergreen. Department of agriculture grain auditors investigated and found a $1.3 million financial shortfall.
Farmers who believe they have outstanding grain obligations with Evergreen Grain can call the department at 614-728-6410, or toll free at 800-282-1955.
Ohio’s Grain Indemnity Fund was created in 1983 to reimburse farmers when a licensed handler becomes insolvent. Since the fund was established, it has reimbursed farmers more than $17.7 million and is funded through a half-cent per bushel assessment on grain marketed at licensed elevators.
Claims to the indemnity fund are handled through the department of agriculture’s Grain Feed & Seed Section, with recommendations from the Ohio Commodity Advisory Commission. The grain indemnity fund currently holds $17.1 million in assets.
The law also now gives priority to the automatic lien established and held by the department in the event of a grain handler’s failure or insolvency. The department’s liens will now have priority over all competing lien claims asserted against grain and grain proceeds of the handler, ensuring that the indemnity fund receives maximum reimbursement in the asset liquidation process.
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