Wednesday, December 15, 2021

Senate Committee Holds Express Grain Hearing

 The Mississippi Senate Committee on Agriculture will hold a hearing at 3:00.  The subject will be none other than Express Grain.  Watch it below or at this link.  JJ will live – blog the hearing.

Commissioner Andy Gipson addresses the committee. 10 of 16 committee members are present. The Commissioner said 11% of Mississippi's grain is delivered to state licensed grain houses.  State can require up to $1 million bond. The company had the bond and submitted their financial statements as required by law. Express Grain operated as both a licensed warehouse and a licensed dealer.

$30-$40 million of grain has not been paid. Increasing the bond would be very expensive and drive many small elevators out of business. Other states have formed a grain elevator indemnity fund. Under such an arrangement, farmers pay a small fee per bushel. The fee goes into a fund that can be used to make farmers whole when such failures occur.  15 states created such programs.  A Mississippi Farm Bureau representative said the organization supported the creation of a voluntary indemnity fund.

 The Commissioner said our laws  are "antiquated."   Most of the farmers signed dealer contracts with the company. Such contracts give title to the grain to Express Grain while payment is often at a later date, depending on market conditions. Other farmers had warehouse contracts which provided storage at Express Grain but title remained with the farmer since no sale took place.

 The Commissioner said Express Grain told him last week it was lining up investors to buy the operation.  

The Senators questioned the Commissioner for some time. Chairman Sen. Chuck Younger said Express Grain was paying higher than the Chicago market rate. The Commissioner said the contracts are so one-sided that the grain elevator enforced the contracts on farmers if Express Grain will make money but tossing the contracts if it will lose money. Thus a farmer is compelled to deliver his grain even if he won't get paid.  




Anonymous said...

Might possibly be the first meeting of the Senate Agriculture Committee, in maybe - well, maybe ever!

Anonymous said...

Is Commissioner Andy Griffith going to be there?

Anonymous said...

I notice on the list of creditors on the bankruptcy, the Department of Agriculture was given a check on June 23, 2021 in the amount $14,013.73 and another one for $890.58 on August 20, 2021 for a total of $14,904.31. Both checks were returned NSF. Why didn't the AG Department and Commissioner "White Hat" Gibson sound the alarm back before these farmers got screwed?????
The filing was not filed until September of 2021!

Anonymous said...

There is business transactions conducted between two parties all over this state thousands of times per day. Why do we need additional laws for the transactions between farmers and grain dealers?

Anonymous said...

As if the senate can do a damn thing about this. Look for a bunch of self serving press releases.

Anonymous said...

Umm, the time to do something was before this happened. Now it’s a civil matter between private parties who will all claim they acted within the law. If the senate finds a magical way to prevent this from happening again, the question is why didn’t they already do it?

Anonymous said...

@3:52, nice noticing, but did you get any more details, such as when the subject checks were actually received and processed by the state and when the state was notified that they were returned NSF?

Do you know if MDAC contacted Express Grain that their checks were returned? Or do you just assume that because they were returned NSF, then the Department should have immediately taken action to put them out of business? If that's the case, as is implied, then you obviously know nothing about what is actually allowed under any state regulatory authority regarding notice, forgetting the fact that having a check returned is not reason enough to start such a process.

But thanks for the information - I'm sure the Senate Committee can use that in their deliberations, that will have nothing to do regarding Express Grain's bankruptcy.

Anonymous said...

The dates of the checks were dated. The Ag Department was notified when the checks were returned NSF. This should have thrown up a red flag to Gipson. It would have gone up the chain of command quickly- enough for an investigation. That division that regulated knew, but did not go forward to investigate. That small amount, if brought to light might have saved a lot of Farmer’s their livelihood. The estimate is that about if the farmers go under. Gibson should resign for not looking into this back in June and July of this year! Let him get up and face the farmers that are going under. As being a farmer, I had a very respected official that Andy Gipson wasn’t a farmer. All he had was a cow with four tits. By the way, I understand that Gipson is still practicing law, even though he has a full time job as AG Commissioner.

Anonymous said...

Don’t worry. The Colemans are parading around the delta showing off their money. They are still living large.

Anonymous said...

@6:44, nice try, but I'll ask again. Just because the checks were dated whatever date doesn't mean that they were sent to the state that day or any day close. If EG were in financial trouble, it is very possible that they wrote, but held, the checks for a while - that's why I ask if you looked into when the checks were deposited, and returned NSF.

I don't know, but I would bet that the processing of checks to a department like MDAC is not actually done by MDAC but rather by DFA, since that's where invoices are sent and payments for agencies made. And once the checks were returned NSF that again would first go to DFA and then notification to MDAC.

More importantly, whenever they became aware that two checks (what they were paying I have no idea from your limited exposition) were returned NSF is not automatically a reason for an immediate shutdown of a business; in normal business and I would assume that it is even more so with government, they would first go back and reinvoice the company - something that would not happen in a short turn around.

Trying to blame this fiasco on MDAC or Gibson is kinda like Jackson's Mayor trying to blame the rampant crime on the fact that the Governor, using Capitol Police, hasn't arrested all the perps committing the crimes.

But your statements about Gipson appear to be correct, although I think he has two cows, maybe a couple of fruit trees on several acres of land. Maybe enough to legally be called a farmer but would take a good Philadelphia lawyer to make that stretch. And yes, I understand the same as you that he is still practicing law - but got an opinion that he could do so as Commissioner. Go figure. How those facts that make it clear that you don't like him and don't think he should be Commissioner relate to your original issue (two NSF checks enough to shut down a business thus costing Don Barrett a large potential lawsuit fee) is hard for me to follow. But I guess it made you happy, so be it.

Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel


Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).

Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.

In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS