November 28, 2014

Pierce Elevator cannot raise the cash, closes for good

The debt is too deep. The Pierce Elevator Company will close, for good.

Pierce Elevator President Brian Bargstadt surrendered his grain licenses March 4th. He since has been trying to get around $6 million together to pay off the elevator’s debt and re-open.

State Public Service Commission Grain Division Director John Fecht says the needed finances never materialized, forcing the elevator to close permanently.

“It’s going to remain closed,” Fecht tells Nebraska Radio Network affiliate WNAX. “The funding mechanisms that we had hoped for didn’t materialize and it’s clear now that the Public Service Commission is going to have to do its liquidation of the grain and we are sending out claim forms and an instructional letter.”

Elevator officials and members of the Public Service Commission met late last week, but officials have not been able to raise the money to re-open the grain elevator.

Fecht says those farmers who still have contracts with the elevator need to make other marketing plans. He advises them to speak with Manager Brian Bargstad about that and to move forward.

“People who have called me, I told them that they need to contact Brian Bargstad to cancel those contracts that were in force and issued as some point in time in the past. And they can make plans to market that grain in a different direction,” Fecht advises.

By Jerry Oster, WNAX, Yankton