On April 3, the Iowa Grain Indemnity Fund Board rejected nearly $1.5 million worth of claims from people who sold grain to Global Processing, a now-defunct soybean dealer that filed bankruptcy in October 2022.
There were a total of 46 claims made to the board related to Global Processing's bankruptcy that totaled $3.6 million.
The board approved 35 of the claims — either in whole or in part — for a total of about $2.1 million.
According to reports, the main reason for the rejections was that several soybean producers made claims on grain sales that happened more than six months before the state suspended Global Processing’s grain dealer and warehouse licenses in October. By law, those deliveries needed to happen on or after April 24, 2022, to be eligible.
Some claims pertaining to Global Processing, which is based in Kanawha, Iowa, were rejected wholly or in part because soybeans were delivered to a location in Minnesota.
Global Processing owed at least 100 creditors $10 million
In October, Global Processing filed for bankruptcy saying it owed at least 100 creditors $10 million.
The Iowa Department of Agriculture suspended the company's warehouse and grain dealer licenses saying it failed to "have sufficient funds to cover producer grain checks" as well as to file monthly financial statements as Iowa law requires.
Global Processing said in its bankruptcy filing that it owed between 100 and 199 creditors from $10 million to $50 million. The company estimated it had the same amount of assets as liabilities.
At the time, the state agriculture department did not know how many farmers might be caught in the company's financial troubles, but urged farmers to file claims through the state's grain indemnity fund.