A northern Iowa company that specializes in organic and non-genetically modified soybeans for food has been ordered by the state to cease its grain dealings because it doesn’t have sufficient money to pay farmers, according to the Iowa Department of Agriculture and Land Stewardship.
IDALS announced Friday it had suspended the grain dealer and warehouse licenses of Global Processing Inc. of Kanawha. In January, the company was ordered to pay about $1.6 million in a federal lawsuit in Delaware, court records show.
Generally, dealers that buy at least 1,000 bushels of grain per month are licensed and regulated by the state to help protect grain producers from losses. Dealers are required to have enough assets to pay their debts for grain purchases.
“The suspension is based upon the company’s failure to have sufficient funds to cover producer grain checks and failure to file monthly financial statements,” IDALS said in a press release.
Don McDowell, a spokesperson for the department, declined to comment further about the situation because an administrative hearing is pending.
Global Processing did not respond to a request to comment for this article.
The company provides “a high-quality supply of raw whole non-gmo soybeans delivered directly to your food manufacturing operation,” according to its website. It sells bulk and bagged soybeans, soybean oil and soy protein for fish and exports the products to other countries.
The company also has locations in Illinois and Nebraska, and this year it bought a soy processing facility in Minnesota, according to a press release.
In November 2021, a company that had declared bankruptcy, Pipeline Foods, sued Global Processing for failing to pay for more than 1,000 metric tons of organic soybeans, according to federal court records. Global did not contest the case and was ordered in January 2022 to pay nearly $1.6 million.
Global is the fourth company to have its licenses suspended by IDALS this year, according to the department’s records. B&B Farm Store’s licenses were suspended in August and revoked. The licenses of two other companies were suspended earlier this year but reinstated.
Pipeline Foods lost its licenses amid bankruptcy last year.
Iowa Capital Dispatch is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Iowa Capital Dispatch maintains editorial independence. Contact Editor Kathie Obradovich for questions: info@iowacapitaldispatch.com. Follow Iowa Capital Dispatch on Facebook and Twitter.
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