MDA auditors working with local dealer on grain equity issue

During a routine audit of Farmer's Ag & Grain Supply Inc., Missouri Department of Agriculture Grain Regulatory auditors discovered a "negative grain equity position," according to a press release dated Sept. 3.

The MDA said that a negative grain equity position is "a grain dealer marketing position in which grain related liabilities exceed grain related assets."

The press release goes on to say that the dealer has been directed by state officials to improve their equity position immediately or risk suspension of their grain dealer license.

According to Kellie Johnson of Farmer's Ag, this situation came about as a result of the company selling the grain in their bins in preparation for the upcoming harvest. They haven't received payment for the grain yet, and the Department of Agriculture is "not letting us use receivables on our account."

According to Johnson the Department of Agriculture has let them operate in this fashion in the past. She also said that "they are working with us and we are doing everything we can to resolve this," as quickly as possible.

Johnson said that both company facilities are open for business. "People can call us, we'll be as open and honest as we can," she said.

Auditors at the Deerfield location declined to comment and no one could be reached at the Department of Agriculture for comment before press time. For more information contact: Misti Preston at the Missouri Department of Agriculture at (573) 751-8596 or Farmer's Ag & Grain Supply at (417) 966-7292.