Producers Grain fate to be decided Tuesday

Posted January 24, 2013 at 12:00 am

Producers Grain patrons are scheduled to vote at 6 p.m. Tuesday, Jan. 29, at the Eagles Lodge south of El Dorado Springs, on the fate of the financially troubled ag co-operative which was started in 1920.

Patrons who do $1,000 or more in business with Producers are eligible to vote.

The proposal is to accept the offer by the statewide MFA Inc. to assume all the $7.6 million in debt and $6.7 million in assets. MFA has said it will give the 42 employees at the El Dorado Springs, Walker, Nevada and Bronaugh facilities the opportunity to apply for jobs.

MFA has said it will invest up to $500,000 per year to modernize the operation, which it would rename Producers MFA Agri Services.

Board Chairman Jerry Brackenridge told patrons at a Jan. 8 meeting that it would require a 2/3 majority to approve the MFA proposal. If 34% or greater of voters do not approve the take-over plan, Producers will be forced to declare bankruptcy, close all its facilities and auction off the assets.