Farmers must file claims against Pipeline Foods by January 4

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ST. PAUL, Minnesota – Farmers who have done business with now-bankrupt Pipeline Foods have until Jan. 4, 2022 to file a claim with the Minnesota Department of Agriculture to cover losses the company has suffered .

Based in Fridley, Minnesota, Pipeline Foods LLC announced on July 8 that it was filing for Chapter 11 Wisconsin Bankruptcy. Pipeline Foods specializes in organic and non-GMO crops.

Anyone who was not paid for grain or had grain stored at a Pipeline Foods facility in Minnesota can apply for a bond, the Minnesota Department of Agriculture said in a press release.

Pipeline Foods held a $ 500,000 bond with the ministry to help grain sellers and depositors mitigate the losses. To submit a complaint:

  1. Fill in a Grain Bond Proof of Claim Form. This can be found at mda.state.mn.us/grain.
  2. Include supporting evidence. This includes, but is not limited to, weigh tickets, purchase agreements, purchase receipts, insufficient funds checks, contracts, warehouse receipts and assembly sheets.
  3. Send the form and supporting documents by email to [email protected] or by post to:
    Minnesota Department of Agriculture
    Fruits, Vegetables and Cereals Unit
    625 Robert Street North
    Saint-Paul, MN 55155

The MDA will review all submitted claims and other records to determine which claims are valid. If there are more than one valid claim, a pro rata share of the deposit is calculated and distributed.

Agweek previously reported that the $ 500,000 bond might not be used because, according to court documents, Pipeline established the “vast majority” of its contracts as “voluntary credit extension” – Minnesota’s term for “credit sales”.

One section of the contract said the company could pay the seller after 14 days of delivery – essentially by handing over title to the grain, with just the intention of paying back later. The contracts expressly state that the contracts are not covered by the bond, which covers cash sales in the event of insolvency.

Questions about the grain bond application process can be directed to Christine Mader at 651-201-6620 or [email protected], or Nick Milanowski at 651-201-6076 or [email protected] .mn.us.

Further information on the Pipeline Foods bankruptcy is available on MDA’s website at: www.mda.state.mn.us/pipelinefoods.

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