Pryor, Boozman File Bill To Help Grain Farmers

U.S. Senators Mark Pryor and John Boozman introduced legislation on Tuesday (Sept. 16) to protect grain farmers financially if a seed producer defaults on a contract and fails to pay.

The legislation, called the Farmer Flexibility Act of 2014, was drafted to deal with a recent financial fiasco in the Delta tied to Turner Grain of Brinkley.

Turner Grain has been at the center of a brewing calamity for farmers since it was revealed that a number of farmers have gone unpaid on their crops and that the grain dealer was under regulatory investigation and involved in litigation. Financial losses are estimated in the tens of millions.

The Farmer Flexibility Act would require the USDA to extend the term of its loans for farmers facing nonpayment due to a bankruptcy filing by a buyer until the bankruptcy case is closed or dismissed. This bill also suspends interest accrual during the extension, while the bankruptcy case is being litigated. The loan extension and interest suspension are important tools to help farmers facing non-payment for their grain commodity time to recover, a statement from Pryor and Boozman said.

Last week, the USDA extended by 60 additional days a deadline for producers delivering their Commodity Credit Corporation (CCC) grain under a CCC-681-1, Marketing Authorization, to Turner Grain. State agri officials have also requested approval of low-interest emergency loans to affected producers.

“I’ve been working with USDA to provide breathing room for our grain producers, and the agency has been responsive to these needs. This bill provides additional relief to protect our grain farmers and mitigate damage to our economy,” Pryor said. “Our grain farmers work too hard to face financial ruin at no fault of their own.”

“A number of Arkansas farmers are facing significant financial difficulties as a result of a broker’s default. Given that this is the peak casino season for harvesting, these farmers are taking a major financial hit because of someone else’s mistakes,” Boozman said. “The bill we are introducing is a good faith effort to help affected farmers and give them time to recover.”

“We thank Senators Pryor and Boozman for their efforts to provide relief for affected farmers. This bill, if implemented, will certainly help farmers impacted by this situation,” said Andrew Grobmyer, Agriculture Council of Arkansas executive vice president. “Time is needed for affected farmers to deal with this terrible situation, and this bill offers that time. It will help keep some farms in business and minimize further economic fallout. We hope Congress and USDA will provide this short term relief and look for other opportunities to help affected producers.”

“We are certainly pleased to see this effort to aid farmers affected by the difficult situation involving Turner Grain Merchandising. If passed, this legislation would provide some immediate relief by extending loan terms and freezing interest charges,” said Randy Veach, Arkansas Farm Bureau president. “Arkansas has limited state laws pertaining to grain merchandising, allowing this unfortunate and unprecedented financial tangle. Hopefully this federal legislation can keep some of our farmers from financial ruin. Some farmers are caught in untenable circumstances where they are forced to repay loans though they were never paid for the crops they delivered.”