Southern Minnesota Farmers Need to Know Their Legal Rights

It was sad to see the news release from the Minnesota Department of Agriculture (MDA) about Pipeline Foods LLC filing Chapter 11 Bankruptcy. This could have a big impact on many farmers in our area that did business with Pipeline Foods.  "The MDA has an open investigation into the license held by Pipeline Foods LLC and, therefore, is limited to the information that can be shared at this time."

The "MDA will be hosting a meeting for impacted farmers in the near future." If you have questions you can call the MDA's Grain Licensing Program at 651-201-6011 or email: grain@state.mn.us. There are so many questions that come to mind, how will this affect all the acres of crops growing in the field right now under contract with Pipeline Foods LL including organic, non-GMO and other specialty grains? Under Chapter 11 maybe they can be reorganized and continue to operate normally? It will take some time to sort this all out but there is one group of farmers that do not have time to take action.

The MDA included the statement below for farmers that have delivered grain to Priceline Foods LLC in the last 10 days. If you did or know a farmer read it carefully and follow their advice!

STATEMENT:

The Minnesota Department of Agriculture is sending out this notice regarding the Pipeline Foods, LLC’s Chapter 11 bankruptcy filing on Thursday, July 8, 2021, to make producers aware that if they delivered grain to Pipeline Foods, LLC in the last 10 days, whether on contract or not, they may be able to secure their interest in the delivered grain through the legal process under Minnesota Statutes 336.2-702. Furthermore, they may have certain rights for any future delivery of grain they might make.  The producers' ability to enforce such rights may depend on their individual circumstances, and issues relating to Pipeline Food's existing credit arrangements. The department encourages producers to seek legal help immediately as many of these issues are time sensitive.