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Mark Pryor, John Boozman Introduce Bill to Help Farmers Affected by Turner Grain

2 min read

U.S. Sens. Mark Pryor and John Boozman have introduced a bill aimed at providing relief for farmers affected by the collapse of grain dealers.

The bill, called the Farmer Flexibility Act, would provide cover for farmers in the case a buyer defaults on a contract and does not pay a farmer after taking control of the grain. The bill would require the U.S. Department of Agriculture to extend the term of its loans for those facing nonpayment after a buyer files for bankruptcy. 

In addition, the bill would suspend interest accrual during the extension.

“This bill, if implemented, will certainly help farmers impacted by this situation,” Andrew Grobmyer, executive vice president for the Agricultural Council of Arkansas, said in a news release. “Time is needed for affected farmers to deal with this terrible situation, and this bill offers that time.”

Grobmyer said it would keep some farms in business, while curtailing the economic fallout. 

“This bill provides additional relief to protect our grain farmers and mitigate damage to our economy,” Pryor said in the release. “Our grain farmers work too hard to face financial ruin at no fault of their own.”

Boozman called the bill a “good-faith effort” to help affected farmers and help them recover.

“Arkansas has limited state laws pertaining to grain merchandising, allowing this unfortunate and unprecedented financial tangle,” Randy Veach, president of Arkansas Farm Bureau, said in the release. “Hopefully, this federal legislation can keep some of our farmers from financial ruin.”

The bill comes as some farmers and companies in Arkansas face losses amid the collapse of Turner Grain Merchandising Inc. of Brinkley. State agriculture officials have put the money at stake in the Turner Grain case between $20 million and $50 million

Word first came of potential trouble in August when several sources told Arkansas Business that Turner Grain was close to filing for bankruptcy. The sources put the company’s potential losses in the millions.

Since then, Turner Grain has been the subject of several lawsuits. The Brinkley company’s top executives have been removed as officers at a related company, and both its president and vice president have begun to prepare for a litigation battle.

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