ARCHBOLD WEATHER

Ohio Grain Fund Has Paid Out $8.5 Million




Ohio’s Grain Indemnity Fund has paid out more than $8.5 million to those who were owed money for grain in elevators that became fi- nancially insolvent in Ohio.

Information provided by the Ohio Department of Agriculture states there have been 1,301 claims filed by those with grain in elevators.

Those totals are since the inception of the fund on July 1, 1983.

Prior to the establishment of the indemnity fund on July 1, 1983, Ohio farmers lost approximately $8 million due to grain elevator bankruptcies and failures since 1968.

The first claims, involving six different license grainhandling firms, were paid in June 1984. Money

The indemnity fund received its money through a half-cent per bushel assessment on grain marketed at licensed elevators. It was collected between July 1, 1983, and December 31, 1985.

The assessment is only collected when the fund drops below $4 million. It recently held over $11 million.

Roy Norman, director of the Fulton County Farm Bureau, said the Farm Bureau would like to see the indemnity fund expanded to $25 million.

With corn trading at more than $7 per bushel, and soybeans over $13, it may not take long to deplete the fund. Archbold Elevator

The Ohio Department of Agriculture suspended the grain-handling license of Archbold Elevator after examiners found the firm’s liabilities exceeded its assets.

The ODA has said the grain indemnity claims process is set to begin soon.

The Ohio Commodities Advisory Commission must approve any payments from the grain indemnity fund.

If the commission approves any claims involving Archbold Elevator, it will be the first time the fund has paid out claims since May 2005. It would be the 36th case in which the fund paid out claims.

The largest number of claims, 177, were filed with the fund in the case of Sharrock Elevator, Inc., Edison. The claims were paid in June 1984. At the time, the total payout was $893,147.46, and the fund recovered $498,178.

The largest amount paid out by the fund involved Bobb Brothers, Inc., of Leesburg, in south central Ohio. There were 154 claims filed, and the total paid out was more than $2.6 million. Claims were paid between December 2003 and May 2005.

The amount recovered was $136,137.33.

Paul Bobb, age 74, was sentenced to four years in the state penitentiary on theft and other charges connected with the Bobb Brothers incident. He was released after four months.

Andy Ware, communications director for the Ohio Department of Agriculture, said the Highland County Common Pleas Court ordered Bobb to pay restitution.

“We are currently receiving $15 a month from him,” Ware said.



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