REYNOLDSBURG, Ohio — More than $3.4 million will be paid out to grain producers after operations were halted at Archbold Elevator in April after the discovery of missing grain.
Archbold Elevator, Inc. is located at 3265 County Road 24 in Archbold, Ohio.
Approved claims. Erica Pitchford, public information office for the Ohio Department of Agriculture, said the grain advisory committee met earlier in June and approved all claims submitted.
She said there were 85 claims submitted.
Pitchford said, however, just because a producer submitted a claim, it doesn’t mean the entire claim was paid. Some producers were only given a part of the requested amount.
The total claims amounted to $3,408,234. The largest claim submitted was for $307,100.
Now the process moves onto the state controlling board. It will meet July 11 and once approval is given, checks can begin to be issued.
What happened?
The cause as to what happened to the missing grain at Archbold Elevator is still under investigation, according to Pitchford.
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.
Pitchford said it remains unclear as to how much money is missing.
Liquidation
She said the current investigation 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, Pitchford said.
Archbold Elevator was reportedly audited last year 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.
It provides no coverage for grain payables over 365 days.
