Clawback and Bankruptcy Resources for Organic Farmers
Creating solutions to better protect farmers from buyer bankruptcy
and clawbacks to ensure stable organic markets
URGENT: Iowa Grain Indemnity Fund Now Covers Global Processing Clawback Payments Made - Deadline August 29, 2025
New Iowa legislation signed in May has extended the Iowa Grain Indemnity Fund to cover clawback claims. This is significant relief for farmers who have been caught in the difficult situation following Global Processing’s bankruptcy. The new Iowa legislation covers grain buyer bankruptcies that occurred on or after October 24, 2022, which includes coverage for the Global Processing bankruptcy.
CRITICAL DEADLINE: For repayment of losses incurred prior to July 1, 2025, claims must be filed by August 29, 2025, through the Grain Warehouse Bureau of the Iowa Department of Agriculture & Land Stewardship website. (There is an online tutorial about how to complete your claim.)
Who is Eligible:
- Any farmer who received a clawback letter regarding Global Processing’s bankruptcy
- Farmers who were required to pay money back in response to the clawback letter (including full payments, settlement payments, or other direct payments to the trustee regarding the preference claim)
- Note: The claim cannot cover any legal fees paid to achieve the settlement or respond to a lawsuit regarding the clawback
- This includes farmers located outside Iowa who delivered grain into Iowa
How to File a Claim:
- Contact the Grain Warehouse Bureau of the Iowa Department of Agriculture and Land Stewardship (Phone: 515-281-5324)
- Claim forms are also available online
What to Do Now:
- If you received a Global Processing clawback letter and made any payment, contact the Grain Warehouse Bureau immediately
Note: Potential claimants should receive a letter, claim form, and instructions. You can also reach out to Iowa Department of Agriculture and Land Stewardship Bureau Chief, James Kennedy with questions. - Gather all documentation related to your Global Processing transactions and any clawback payments
- If you feel your situation is more complicated, consider consulting an attorney before proceeding
- File your claim before the August 29, 2025, deadline
What happened?
On October 24, 2022, organic and non-GMO grain buyer Global Processing, Inc. filed for Chapter 11 bankruptcy. Many farmers who delivered grain but hadn’t been paid were left without compensation, and the Iowa Grain Indemnity Fund had already been depleted by the Pipeline Foods bankruptcy claims in 2021.
Making matters worse, beginning in September 2024, over 90 farmers across Iowa, Minnesota, and other states received “clawback” letters demanding they return portions of payments they received from Global Processing during the 90 days before the bankruptcy filing. These legitimate but devastating letters required farmers to pay back money they had already earned and spent.
OFA, and other organizations like the American Farm Bureau Federation, worked to connect affected farmers to resources, legal professionals, and state and federal legislators. OFA’s work and the power of our members helped make progress on the issue of protecting organic farmers from buyer bankruptcies, but more work is needed to secure long-term, federal protections.
Call OFA's Farmer HelpLine
Please call our Farmer Services Team at: 883-714-3834 or email helpline@organicfarmersassociation.org and we can help you decide what to do next and connect you to other resources, experts, and farmers in the same situation.
Tell Us About Your Clawback Experience
Help other organic farmers by completing this short survey about your Global Processing clawback experience. We’re using this information for our education purposes only. Documenting the number of farmers affected is extremely important for us finding a policy solution to protect farmers in the future.
In Need of an Attorney?
If you are in need of an attorney versed in Bankruptcy and Agricultural Law, Eldon McAfee at Brick Gentry, P.C. in West Des Moines, IA is taking farmer clients who have received clawback letters to collectively respond. You can contact him via email or mobile: 515-249-1706.
Need to Talk to Someone?
Access Free Immediate Counseling & Personal Assistance Services:
Toll-Free Phone: (833) 999-FARM, 24 hours a day
Text to Chat: (314) 451-5727, 9AM-5PM Central
988 Lifeline: Dial or Text 988
Note: OFA does not endorse any particular attorney or legal service and makes no representation, guarantee or warranty (express or implied) as to the legal ability, competence, quality, or reliability of any legal services provided by any of these Lawyer Services.
Research and Resources from OFA
Resources to Dig Deeper
Pipeline Foods Grain Clawback Virtual Meeting with Farmers Hosted by Organic Farmers Association
Grain Marketing Issues & Solutions Presentation Slide Deck from Farm Commons & OFA
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