- Associated Press - Friday, September 5, 2014

LINCOLN, Neb. (AP) - The state’s Public Service Commission ruled people who stored grain at a failed grain elevator will get paid in full.

But many who contracted to sell grain to the closed elevator or paid to purchase undelivered grain will get less than a dime on the dollar, or nothing at all, the Lincoln Journal Star reported Friday (https://bit.ly/1vWvNTZ ).

Almost $2 million in claims were denied in the commission’s final order. The commission closed Pierce Elevator Inc. in March, after a bank discontinued financing the operation.

The company was operating a grain elevator in Pierce and storage sites in Foster and Randolph. About 660,000 bushels of corn and 130 bushels of soybeans were being stored at the business before it closed.

More than 200 farmers filed claims worth $9.7 million against the company.

The commission’s final order said satisfied storage claims combined were for $4.6 million. It agreed to $3.3 million for approved and qualified dealer claims, but those were covered by a $300,000 bond, which will provide only 9 cents on the dollar. Some of those claims included big commodity companies and feedlots that purchased grain that wasn’t delivered.

One of the last sizeable grain elevator failures in Nebraska happened in 2008 when Alvo Grain and Feed filed for bankruptcy protection.

Farmers who sold grain through the elevator and were not paid received 12.4 cents for every dollar of the $2.4 million in losses they claimed. An additional $1 million in claims was denied.


Information from: Lincoln Journal Star, https://www.journalstar.com

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