SPRINGFIELD, Ill. — The Illinois Grain Insurance Fund will cover farmer-investor losses as the result of a grain dealership closure for the first time in several years, according to Stuart Selinger, bureau chief of Warehouses for the Illinois Department of Agriculture (IDOA).

He referred to the surrender of operating licenses to the IDOA by a St. Clair County grain warehouse, Handy Feed Handyscape, Inc., of Millstadt, on April 2. That came after inspectors discovered assets held by the grain storage company, with a capacity of 153,000 bushels, were insufficient to meet requirements of the Illinois Grain Code and took control of the facility.

“This is the first insolvency that will require money from the Illinois Grain Insurance Fund since 2008,” Selinger said. “We’ve had staff on site since April 2 to hear the assets of Handy Feeds for the benefit of the producers. The farmers will be covered by the grain fund. We’re hoping by early September they’ll be getting their checks.”

About 48-50 farmer-investors were affected by the company’s insolvency, according to Selinger. A meeting was held to address investors’ concerns in Millstadt April 18, under the direction of the IDOA. Officials told investors attending that Handy Feed was a member of the Illinois Grain Insurance Fund, meaning all deposits of grain at the facility are protected.

As allowed by the fund, stored grain is covered at 100 percent of its closeout value as determined by the IDOA, as is grain priced within 21 days of the date of failure. Grain stored under a price-later arrangement is protected at 85 percent of the closeout value based on the length of time since delivery and pricing.

Those who couldn’t attend the April 18 meeting or hadn’t heard about it can still submit a claim by going to the Handy Feed store at 419 S. Jefferson in Millstadt during business hours, according to Selinger.

“We have department personnel on-site securing the assets for the benefit of the complainants. (Investors) just need to come in and visit with our staff at the office of Handy Feed to file their claims,” he said.

Handy Feed’s ownership was allowed several weeks to correct or account for financial deficiencies revealed in its financial records, before IDOA’s Bureau of Warehouses revoked the company’s operating licenses and assumed control of the facility, Selinger explained.

“(Handy Feed’s) licenses were set to expire on March 30. They presented to (IDOA) preliminary financial information that showed deficiencies, in that they could not meet the minimum financial requirements of the Illinois Grain Code to maintain their license. As a result, on March 31 the department suspended their licenses, allowing them time to correct those financial deficiencies,” he said.

“However, as of April 12 they were unable to do so, and they voluntarily surrendered their licenses to the department, leaving indebtedness to producers and meeting the definition of a failure under the Illinois Grain Code.”

In addition to corn, Handy Feed Handyscape sells soybeans, wheat, milo, oats, feed, seed, fertilizers and other agricultural products. According to the company’s website, it is a family-oriented business with more than 50 years of service to farmers and others in the area. Handy Feed is a Purina Mills product dealer. No ownership information for the company appeared on the website.