Sen. Westrom chairs Senate Agriculture Committee hearing on Ashby Farmers Cooperative Elevator fraud

WATCH THE HEARING HERE

On Wednesday, January 23, Senator Torrey Westrom (R-Elbow Lake) chaired the Senate Agriculture Committee as they received an overview of the recent Ashby Farmers Cooperative Elevator fraud. The committee heard testimony from the Minnesota Department of Agriculture (MDA), the MDA Grain Advisory Group, Jason Lina – an attorney from Morris representing a group of affected farmers, and Erik Ahlgren – an attorney from Fergus Falls who has been working on the co-op’s disillusion and serves as the court appointed representative for the creditors.

“This situation has unfortunately impacted many in our community,” said Senator Westrom, Chairman of the Minnesota Senate Committee on Agriculture, Rural Development, and Housing Finance. “In a farmer’s world, grain is cash. And, just as we trust banks to store our cash safely, farmers must be assured their grain is stored safely at the elevator.”

A group of agricultural stakeholders has been working with the MDA to address this situation and propose solutions that will prevent this from occurring in the future. They are due to report back to the legislature their proposals later this session. Some of the ideas include more stringent financial reviews, annual inspections of onsite and offsite grain, and better internal controls and board training. The MDA Grain Advisory Group will next be meeting on February 28 and it is open to the public.

Further, the MDA is recommending that any farmer who has not received payment or who had grain stored at the elevator to submit a bond claim with the department by March 2019. The form and more details on how to submit a claim can be found at www.mda.state.mn.us/grain.

“I am encouraged that farmers and other members of the agriculture community are actively working together to find solutions to this problem,” added Senator Westrom. “We will continue to work with stakeholders on better protecting farmers as they bring their goods to market.”

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