Farmers and state officials were taking initial steps Monday in the wake of the default on payments to Delta farmers by Turner Grain Merchandising of Brinkley.
Rep. Matthew Shepherd of El Dorado, chairman of the House Agriculture, Forestry and Economic Development Committee, said a hearing likely would be held Friday morning and concern itself with "proactive" steps that might prevent a recurrence.
Meantime at least one farming family says it has already talked with a lawyer about how to recoup its losses.
Dale Bartlett, president of Turner Grain, declined to comment when reached by phone.
Rumors have been circulating that Turner Grain is facing bankruptcy. A check of filings with the U.S. Bankruptcy Court for the Eastern District of Arkansas showed no filing for the company or its principals.
House Speaker Davy Carter said in a letter to Shepherd on Friday that if investigations confirm breached contracts "executed by commodity brokers in Arkansas ... tens of millions of hard-earned dollars ... will have disappeared into the heavens."
Turner Grain is a dealer, not a broker, state Agriculture Secretary Butch Calhoun said Monday, so a suggestion by Carter, R-Cabot, to have brokers licensed and bonded was off the mark.
But he did say that dealers, such as Turner Grain, do not have to be licensed by the state.
Asked whether there is government protection for farmers who have not been paid, he said he did not know, though he was looking into that possibility.
David Nutt, a commodities broker and owner of J.W. Nutt Co. of North Little Rock, said a broker never "owns" the grain he is selling, whereas a middleman such as Turner Grain does take ownership by buying it from producers and paying them after it is sold.
Calhoun said he met with a representative of state Attorney General Dustin McDaniel, whose office was gathering facts.
Aaron Sadler, a spokesman for McDaniel, said in an email: "Our office represents the Agriculture Department and we will provide advice and counsel to them through this process. Obviously, we are very concerned about the issues regarding this company that have recently come to the state's attention."
Don Wilkison, who farms 15,000 acres in Monroe and Lee counties with his four sons, said Turner still owed them payments on their 2013 crops.
He said he did not know the amount owed by Turner, but added that payments by the dealer had gotten later and later in the past few years.
One of his sons has contacted a lawyer to represent the family, he said.
"Jason [Coleman, owner of Turner Grain] and Dale [Bartlett] were good personal friends," he said.
Business on 08/19/2014