Insolvency is Forcing This South Dakota Grain Company to Surrender its Licenses
South Dakota-based grain handling company Kingsburg Grain and Feed has agreed to surrender its grain buyer and warehousing licenses.
In June 2019 the South Dakota Public Utilities Commission (PUC) met with Kingsburg’s accountant and bankers regarding the businesses’ finances and licensing requirements, according to an affidavit from Cody Chambliss, the state’s grain warehouse program manager. Within weeks, a full inspection of the business was conducted along with the company's financial service providers.
This inspection found that Kingsburg had multiple past-due delayed price contracts that were past their pricing date, the company was no longer financing with its bank, and no longer met the minimum financing requirements needed to hold a grain handling license. The PUC also determined that Kingsburg had not been candid about their financial situation.
Under South Dakota state law, each state-licensed grain warehouse is required to post a minimum $50,000 bond - a requirement determined by the company’s average purchases over a three-year period.