Boersen Farms Creditor Seeks $29.2M

LINCOLN, Neb. (DTN) -- Just as the eight-year statute of limitations was about to run out on Oct. 17, 2025, an agriculture equipment leasing company that leased to Zeeland, Michigan-based Boersen Farms, filed a renewed judgement in federal court, indicating the farm still owes $29.2 million dating back to a breach of contract in 2017.

Boersen Farms leased more than 120 center pivots and other equipment from TFG-Michigan, a subsidiary of Utah-based TFG, according to court records.

In its new motion to renew the judgement filed in the U.S. District Court for the District of Utah, TFG said the amount has fallen because of payments and equipment sales totaling net proceeds of about $6.6 million.

TFG told the court it calculated interest at $17.1 million. The company also is seeking about $2.7 million in "compensatory sanctions" and about $150,000 in attorneys' fees to be included, as was previously ordered by the court.

TFG sued Boersen Farms in 2017 and later received a court order preventing the farm from selling property, as well as garnishment on the debt that was then estimated at $33.2 million. TFG-Michigan is the judgement lien creditor in the case because the company won a judgement for that debt from the court.

Boersen Farms did not respond to DTN's request for comment.

In an amended complaint filed in 2017, TFG alleged Boersen Farms "without TFG's knowledge or consent" sold "several items" of leased property in violation of the agreement. The amended complaint alleged the farm "did not deliver the proceeds" from those sales to TFG and continued to try to sell equipment.

According to the new motion, the court found Boersen Farms in contempt of court on Sept. 28, 2017, but the recommended sanctions have yet to be paid by Boersen Farms.

In that contempt order, the court ordered Boersen Farms to return equipment to TFG and to deposit proceeds from any equipment sales into a trust account or to provide specific accounting of the proceeds. The court also ordered the farm to not transfer or sell or dispose of equipment. Boersen Farms, however, continued to use center pivots and other equipment and didn't immediately return the equipment to TFG, according to court documents.

OTHER EQUIPMENT DEALINGS

It is the second known legal action filed against Boersen Farms that alleges the operation sold farm equipment it doesn't own.

In December 2023, Utica Leaseco, LLC, sued JW Equipment, LLC, in the U.S. District Court for the District of Western Michigan. That lawsuit alleged JW was guilty of conversion of property and unjust enrichment, as part of an alleged equipment scheme undertaken by Boersen Farms. That lawsuit alleged Boersen Farms "by his own admission" stole 112 items of equipment and "fraudulently transferred" them to numerous entities including JW Equipment.

That case was dismissed from federal court on a technicality.

In recent weeks, Boersen Farms asked a federal court in Michigan to lift a restraining order to complete what would be the operation's 10th sale of land and other assets connected to a lawsuit filed by TFG.

This time, Boersen Farms sought and received permission to sell two parcels of land in Calhoun County, Michigan, as part of an effort to liquidate assets.

The U.S. District Court for the Western District of Michigan allowed the farm to sell two parcels to KCFCU Properties LLC for $300,000.

ASSET SALES GROW

By DTN's calculations, Boersen Farms has sold more than $6 million in assets related to the TFG lawsuit.

The motions to sell property include:

-- On Jan. 8, 2021, Boersen Farms motioned the court to allow the sale of land at 2941 Van Buren St. in Hudsonville, Michigan, to Jackson Hill LLC. That includes Calhoun County, Michigan, property on South Helmer Road and at Watkins Road in Battle Creek.

Boersen Farms entered into a purchase and sale agreement on Oct. 28, 2020, with James M. Austin, but the court document lists no amounts for the sale.

-- On March 30, 2021, Boersen motioned the court to allow the sale of three parcels of land in Allegan County, Michigan. Court documents show the land contract was "in foreclosure" scheduled for sale on April 1, 2021.

Boersen told the court he had an agreement for the sale of the property to B&K Holding LLC, who would pay off the land contract, pay $100,000 to counsel for the plaintiff as well as any closing costs.

-- On Sept. 21, 2021, Boersen Farms motioned the court to allow it to enter a land contract for the sale of land and irrigation equipment to a John and Joyce Scherer in Cass County, Michigan.

"Boersen Land shall otherwise be restrained from delivering a warranty deed of the property to the buyer until and unless plaintiff receives the $100,000 payment on or before Dec. 28, 2021, as required by the land contract," the court document said.

-- Then, on Nov. 24, 2021, Boersen filed a motion to allow the sale of two parcels of land in Allegan County, Michigan, to the Match-E-Be-Nash-She-Wish band of Pottawatomi Indians of Michigan, also known as the Gun Lake Tribe.

Interestingly, in the court motion, Boersen Farms describes itself as a "dissolved Michigan corporation." The amount of the sale is not disclosed in court records.

-- On Oct. 24, 2022, Boersen Farms motioned the court to allow for the sale of three parcels of land in Hillsdale County, Michigan, and Van Buren County, Michigan.

"The property is encumbered by a mortgage held by Farmland Capital Solutions, LLC as assignee of First Farmers Bank and Trust," the motion said.

"Boersen reports that Acretrader 195 LLC, an Arkansas limited liability company, has agreed to purchase portions of the property for $3,610,000 and that the Acretrader purchase price, net of closing costs, will be paid to FCS. No proceeds will be paid to Boersen.

"Boersen reports that B&K Holdings LLC, a Michigan limited liability company, has agreed to purchase portions of the property for $75,000 plus closing costs and that the B&K purchase price will be paid to AVT. No proceeds will be paid to Boersen."

-- Boersen Farms filed a motion on Dec. 5, 2022, asking the judge to allow for the sale of a tract of land in Ottawa County, Michigan, for $1,925,000 to PW Byron Road LLC.

-- On Dec. 29, 2022, Boersen filed a motion to be allowed to sell land at 3756 Riley St. in Hudsonville, Michigan.

"The property is encumbered by a mortgage held by Farmland Capital Solutions LLC as assignee of First Farmers Bank and Trust," the motion said.

"Boersen Farms reports that Raul R. Montiague and Lenore A. Montiague as part of a West Michigan Regional Vacant Land Purchase Agreement, have agreed to purchase the property for $985,000. The purchase price net of closing costs will be paid to FCS. No proceeds will be paid to Boersen Farms."

-- Boersen filed a motion on March 11, 2024, to sell three parcels of land in Lawrence, Michigan, to Ceres Farms LLC for $50,000.

-- On Jan. 27, 2025, the court handed down an order to allow Boersen Farms to sell land in Ottawa County, Michigan, for $450,000 with net proceeds paid to TFG-Michigan, L.P.

In addition, the court ruled Boersen could sell land in Battle Creek, Michigan, for $179,000, with the net proceeds going to B&K Holdings LLC, the assignee of First Farmer's Bank and Trust and Ceres Partners. Ceres is an investment management firm focused on food and agriculture based in South Bend, Indiana.

Boersen Farms has faced lawsuits for years from companies that provided products and services to the farm that once operated about 83,000 acres. Those lawsuits were filed to force Boersen Farms to pay money owed to the companies.

The farm was moving toward Chapter 11 in 2017 on the $145 million in loans owed to CHS Capital LLC, but a then newly formed lender based in Zeeland, LT Capital LLC, agreed to take on the Boersen Farm debt to CHS.

Read more on DTN:

"Boersen Farms to Sell More Property," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social platform X @DTNeeley

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