LITTLE ROCK — Arkansas Farm Bureau President Randy Veach praised legislation proposed Tuesday by U.S. Senators Mark Pryor and John Boozman that would provide relief for farmers affected in the financial meltdown created by Turner Grain Merchandising. 

The legislation, if passed, would freeze federal Farm Service Agency marketing assistance loans and resulting interest payments in cases where grain marketers are involved in bankruptcy proceedings. Farmers would have 180 days after those cases are resolved before loans payments are due.  

The alleged breach of contract and non-payment by Turner Grain Merchandising of Brinkley is affecting farmers in Arkansas and surrounding states. Several lawsuits have been filed over the situation and bankruptcy is expected, in which case the proposed legislation would help Arkansas farmers. 

“We are certainly pleased to see this effort to aid farmers affected by the difficult situation involving Turner Grain Merchandising,” said Randy Veach, president of Arkansas Farm Bureau. “If passed, this legislation would provide some immediate relief by extending loan terms and freezing interest charges. 

“Arkansas has limited state laws pertaining to grain merchandising, allowing this unfortunate and unprecedented financial tangle. Hopefully this federal legislation can keep some of our farmers from financial ruin. Some farmers are caught in untenable circumstances, where they are forced to repay loans though they were never paid for the crops they delivered.” 

Farm Bureau officers and staff have been in contact with members of the Arkansas Congressional delegation on this issue, and had earlier sought extension of loan terms, which recently had been extended by 90 days.

“One thing we know is that the specifics of any legal filings will obviously impact the scenarios and outcomes for everyone involved,” Veach said. “We are committed to protecting Arkansas agriculture, our members, farmers and ranchers.” 

Arkansas Farm Bureau is a nonprofit, private advocacy organization of more than 190,000 families throughout the state working to improve farm and rural life.