Organic Grain Growers: Iowa Suspends Global Processing Inc.’s Grain Dealer Licenses

On October 7, 2022, the Iowa Department of Agriculture and Land Stewardship (IDALS) suspended the warehouse and grain dealer licenses for Global Processing Inc. of Kanawha, Iowa. As a result of this action, Global Processing Inc. shall not operate as a warehouse operator or grain dealer within Iowa until further order of the Department and must surrender any warehouse and grain dealer certificates to the Department.   The company also has grain facilities in Minnesota and Nebraska.

Global Processing Inc.’s licenses were suspended in Iowa in accordance with Iowa Code Chapters 203 and 203C. The suspension is based upon the company’s failure to have sufficient funds to cover producer grain checks and failure to file monthly financial statements in accordance with Iowa Codes 203 and 203C. The Department has requested that a hearing on the Department’s action be held in the immediate future, that date will be set on Wednesday, October 12.

The Iowa Department of Agriculture and Land Stewardship’s Grain Warehouse Bureau regulates and examines the financial solvency of grain dealers and grain warehouse operators. The functions of the Bureau include warehouse licensing, warehouse examination, grain dealer licensing, and grain dealer examinations.  If you sell to an Iowa-licensed grain dealer the elevator is required to pay the farmer within 30 days of grain delivery.  If the farmer request immediate or earlier payment, the buyer is REQUIRED to pay the farmer within 24-48 hours of that request.  If a grain farmer selling in Iowa finds that the buyer has not met these regulatory protections for farmers, farmers should call the IDALS Grain Warehouse Bureau to report a claim:  515-281-5324.  While the bureau monitors annual, and sometimes quarterly, and monthly financial statements for grain dealers, hearing from farmers that a buyer is having trouble paying producers is helpful for IDALS to conduct an investigation in a timely manner.

IF YOU SOLD GRAIN TO GLOBAL PROCESSING BUT HAVEN’T BEEN PAID

Unfortunately, you will need to wait until Global Processing’s hearing date to determine whether their license will be revoked.  If it is revoked, then you should call your state Department of Agriculture’s Grain Division.    In the event their license is revoked, click here for our state directory and instructions we created for the Pipeline Foods’ bankruptcy case in 2021.

IF YOU ARE UNDER CONTRACT WITH GLOBAL PROCESSING TO DELIVER FUTURE GRAIN

The IDALS staff are recommending farmers contact their attorneys to evaluate where grain needs to be delivered and whether they can get out of those obligations.