The Missouri Department of Agriculture has set an administrative hearing for 6:30 p.m. on Thursday, May 28, at the Gallatin High School to establish a payout plan for distributing the proceeds of bonds to farmers who lost money when the Gallatin Grain Company went out of business.
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The Gallatin Grain Company warehouse bond is $184,000; the dealer’s bond is $223,000.
The MDA accepted 90-100 claims against Gallatin Grain Company, which was owned by Danny Froman.
Mr. Froman voluntarily surrendered his Missouri Grain Warehouse and Grain Dealer licenses to the MDA after a walk-through inspection of Gallatin Grain Company on Feb. 9. During the inspection, Mr. Froman said there was not enough money to pay customers. The elevator has been closed since that time, and MDA has taken over operations of the company.
Matt and Wendy Nalle of Pattonsburg received two land tracts containing the elevator and feed mill from Gallatin Grain Company as restitution of debt. State agriculture officials said they believed the transaction would benefit the other farmers who filed claims against the grain elevator as there will be less claimants filing against the bond proceeds, thereby increasing the distance that the bonds will go to pay claimants.