cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Senior Contributor

Illinois Family Farms -- anybody affected?

I'm woefully behind the times on this story of Illinois Family Farms LLC's bankruptcy filing and everything that's happened there. Looks like quite a list of creditors they have, and according to some of the court documents, their debts are way beyond their assets at this point.

 

So, is anybody here affected by that bankruptcy? I'm anxious to hear anybody's stories of dealings with the company. Are you being treated fairly during these bankruptcy proceedings?

0 Kudos
34 Replies
Highlighted
Veteran Advisor

Re: Illinois Family Farms -- anybody affected?

The article I read, showed that for a couple of years, the revenue stream was about $10 million or more, and then now, for the year of filing, the revenue drops to about $2 million, and the question is...where is the money? I hope they turn everyone involved upside down, and shake the pockets to find out where it all went and take care of whoever is getting short changed.

 

and this should be a lesson to all of those landlords that think the "big guy" is the one to rent to...maybe making sure the check doesn't bounce is more important.

0 Kudos
Highlighted

Re: Illinois Family Farms -- anybody affected?

I believe that is the outfit that on their webside they said they had enhanced their revenu by sometimes selling and buying the crop several times.

 

Sounds a bit like the MF Global segregated funds that were vaporized.

 

The money is somewhere off in the ether?

0 Kudos
Highlighted
Senior Advisor

Re: Illinois Family Farms -- anybody affected?

Take a wet crappy 2009 crop that didn't store worth a hoot......throw in a crappy 2010 and 2011 crop that didn't yield to budget........add in a margin account......then envision a game of risk that went from playing penny slots at your local smash and grab to being elbow to elbow in the high rollers room at the Bellagio in Vegas...........shake it all up.......and all you gotta do is zig when you should have zagged and it's all over....... Couple of million in assets and ten or fifteen times that in debt.......that money is gone.......no equity, run it like a corporation till you are rich or the wheels fall off......... I do not know anyone involved...........
Highlighted
Veteran Contributor

Re: Illinois Family Farms -- anybody affected?

In this day an age I find it incredible they actually had $ 15 million in unsecured credit.  Were the bankers also in on the scam?  How many acres were they farming when they grossed $2 million?  Most of the ground in that neighborhood would only require about 2000 acres to gross that much.  Fraud.  Plain and simple.  Keep digging. 

0 Kudos
Highlighted
Honored Advisor

Re: Illinois Family Farms -- anybody affected?

Jeff, got any links, for those of us without ties in your area?  Sounds interesting. 

 

This sounds like a case of "the bigger they are, the harder they fall."  We have read warnings of farm credit failures, and this sounds like a spectacular one, for usre.  I would expect it to tighten up credit for others.  

 

Wonder if it will have a detrimental effect on land values, at least in their area?  Since this is said to be unsecured debt, I am surmising not loans on land the oiperation bought.  Wonder who their lender was, and what means testing they had failed to do, in order to overextend things that far....?

 

0 Kudos
Highlighted
Veteran Contributor

Re: Illinois Family Farms -- anybody affected?

Last year with the crop insurance guarantee for corn/soybeans its hard to imagine he couldn't at least keep his money together even with poor yields. My guess is he probably got on the  wrong side of positions with the board of trade. He probably also funneled a bunch of cash/grain out of the corp to his personal or different entities prior to filing for bankruptcy. The sad part is he's probably living the same lifestyle at the expense of his creditors. A good example is John Corzine. How many people did MF Global affect? I doubt he needs to be looking for a 10-12 dollar hour job.

0 Kudos
Highlighted
Senior Contributor

Re: Illinois Family Farms -- anybody affected?

Illinois Family Farms filed bankruptcy on November 23 of last year, listing assets of up to $1 million and liabilities of between $10 and $50 million, according to court documents. The previous month, on October 12, Illinois Family Farms Leasing, LLC, also filed bankruptcy, listing up to $100,000 in assets and the same amount of liabilities.

 

Sounds like something that probably has affected a lot of farmers in the area who worked with the company. If anybody would like to get copies of the bankruptcy documentation, shoot me an email and I'm happy to provide them. 

0 Kudos
Highlighted
Advisor

Re: Illinois Family Farms -- anybody affected?

Been reading this thread with interest as it's remindful of the saga of Premium Standard Farms back in then late 80s-early 90's.

 

 Set up from the start to fatten up the partners while being started and developed.  Once defaulted upon and sold within the industry for cents on the dollar it still represented a bunch of buildings and sows.  No sows were ever liquidated.  Just went on to become a piece of some SF Pork Powerhouse or other.

 

The U. S. Republican party is in the process of seeing to the nomination of a candidate who has this particular schtick down to a science.  We might get to see how it would work out for a country.

0 Kudos
Highlighted
Senior Advisor

heres one link

http://www.agweb.com/article/high-profile_crash_of_a_titan/

 

2.4M in assets...........o.......... about 48M in debts both secured and unsecured..............

 

again, run it like a corp till you are rich enough to buy an island or run it till the wheels fall off..............

 

just a matter of who bought the island..............

0 Kudos