As reported by the Progressive Farmer on DTN, the Omaha-based Hansen-Mueller Company seeks Chapter 11 protection amid mounting debts of over $500 million to farmers and agribusiness. The action follows reports from farmers in several states over the past few weeks that they have not been paid for grain deliveries to the company. I had the chance to speak with Mark Hafliger, president of AgMark LLC, one of Hansen-Mueller’s largest unsecured creditors, about the impact this has on AgMark LLC.
General Manager Lydia Housh:
Well, we have seen the article that had come out about a bankruptcy being filed with a business partner, I guess, or past business partner with AgMart. Can you explain to us a little bit about what’s going on?
Mark Hafliger – AgMark LLC President:
Yeah. Hansen-Mueller is a U.S. grain company, and they have filed for Chapter 11 bankruptcy. And I know that’s raised some questions.
Lydia:
Yeah, and so you guys are named at AgMark as being one of the, I guess, biggest customers that haven’t been paid, over $2 million. It says that there’s still an outstanding payment set to be made to you guys. How does that affect your business or is it something the local consumers or farmers need to be concerned with?
Mark:
No. I mean, while this is a significant and unfortunate event affecting many businesses across the United States, I mean, Agmark and its cooperative owners maintain a very financially strong position, and they have things in place to handle these types of situations. So really, there’s no impact on Agmark’s ability to make, you know, current or deferred grain payments, and producers shouldn’t have, you know, should have no concerns regarding payment, security, or the operations of AgMark.
Lydia:
Well, and as large as you guys are as a business, where $2.1 million sounds like a big amount for the everyday consumer. As large as your company is, like you said, it’s stuff that you guys have been prepared for, and I assume that you are prepared for loss every once in a while, dealing with this type of economic situation.
Mark:
Yeah, that’s why having a financial strong balance sheet, and like you said, the size and the scope of AgMark, yeah, it is an impact, but we’re positioned to handle it, and it’ll have limited impact on our owners and still be able to take care of the producers.
Lydia:
Well, that’s great news, Mark. And we wanted to hear it straight from the horse’s mouth, because I know we’ve had a lot of questions. You guys have had a lot of questions. Is this going to be a big deal? Is this going to make a difference in AgMark? But you’re saying right here, farmers and your owners, don’t be worried. AgMark still has you covered.
Mark:
Yeah, there’s no issues. I mean, AgMark remains committed to you know, transparency, stability, and, you know, the long-term success of our producers we serve. So, yeah, like I said, this is unfortunate, but we’re good.
Lydia:
Awesome. I appreciate the input, Mark. We appreciate it. Is there anything else you want to pass along to anybody?
Mark:
I appreciate the producers and the business they do with us.
