The Missouri Department of Agriculture was notified last Monday, Feb. 9, during a walk-through inspection of the facility that there is no grain or other assets on hand. It was indicated to the Department of Agriculture at that time that there was not enough money to pay customers. Letters have been sent to customers of Gallatin Grain Company notifying them of the closing.

Mr. Froman and his attorney, Harold Caskey of the Caskey-Hopkins law firm in Kansas City, whom Froman has hired to help figure out a plan to get his creditors paid, met with officials with the Department of Agriculture.

Froman told Department of Agriculture officials that he is trying to do the right thing, and that he does not want to file bankruptcy, if it can be avoided.

Today, the Department of Agriculture began mailing claim notice letters to farmers which will inform farmers how to file claims against Gallatin Grain Company.

As a licensed grain elevator, Gallatin Grain Company has bonds posted with the Department of Agriculture. The warehouse bond is $184,000; proceeds from this bond would be used to cover the storage facility. The dealer’s bond is $223,000, and it would be used to cover grain that has been sold by farmers to Gallatin Grain for which they have not collected payment.

If the bonds are not large enough to fully repay creditors of Gallatin Grain Company, every creditor will receive a share of the bonds, prorated by the amount of their claim.

The Department of Agriculture’s Grain Regulatory Service plans to have staff in Gallatin to receive claims from customers of Gallatin Grain Company on the following days: Tuesday, March 3 from 10 a.m. to 7 p.m.; Wednesday, March 4 from 8 a.m. to 5 p.m.; Thursday, March 5 from 8 a.m. to 3 p.m.

Creditors will have 30 days to file their claims. It is important that creditors provide supporting documentation (copies of sales tickets, settlement sheets, sales tickets, contracts, etc.) All claims must be postmarked no later than March 17, 2009.

Once the claims have been received and verified, an administrative hearing will be conducted by the MDA-GRS to establish a payout plan for distributing the bond proceeds. All claimants will be notified of the time and place of the administrative hearing.

Gallatin Grain Company was established in 1975. Danny Froman and his son Cole are also owners of the Gallatin Livestock Market. Attempts by this newspaper to speak with Danny Froman have been unsuccessful.

If you have a claim against Gallatin Grain Company, you should be receiving a letter from the Department of Agriculture with instructions on how to file your claim. If you do not receive a letter, contact Chris Klenklen, Grain Regulatory Service Program Administrator, Department of Agriculture, at 573-751-4112.