MI Farm Defaults on Seed Contract

Monsanto Sues Boersen Farms for Defaulting on $2.4M Seed Contract

Todd Neeley
By  Todd Neeley , DTN Staff Reporter
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A federal court filed an entry default against Boersen Farms. (DTN graphic)

OMAHA (DTN) -- Boersen Farms defaulted on a $2.4 million seed contract with Monsanto Company, according to a lawsuit filed in federal court by Monsanto.

According to the lawsuit, and a subsequent motion for default, Boersen Farms, operated by Dennis Boersen of Zeeland, Michigan, has not responded to the Monsanto lawsuit filed in the U.S. District Court for the Eastern District of Missouri in St. Louis.

Court records indicate Boersen Farms was served with the original complaint on Nov. 16, 2017. The farm was served with an amended complaint on Dec. 28, 2017.

A court filing by Monsanto on Jan. 19, 2018, stated that Boersen failed to appear or file a responsive pleading to either complaint, and Monsanto asked the court for an entry of default against Boersen Farms. The court filed an entry of default against Boersen Farms on Jan. 24, 2018.

Boersen Farms also has been sued in U.S. District Court for the Eastern District of Pennsylvania, for allegedly defaulting on about $268,000 in lease agreements for irrigation equipment with BB&T Commercial Equipment Capital Corp. A complaint in that case was filed on Jan. 12, 2018.

Neither Dennis Boersen nor his attorney responded to DTN requests for comment.

Boersen Farms operates more than 80,000 corn and soybean acres in western Michigan.

Last fall, Boersen Farms defaulted on about $145.3 million in loans from CHS Capital LLC.

At the time, the farm was placed into a receivership where it could reorganize its debt through Chapter 11 bankruptcy protection.

In October 2017, a new lender, LT Capital LLC, agreed to take on the debt and then dismissed court action against the farm. LT Capital LLC is a newly formed company based in Zeeland, Michigan. CHS Capital is a limited liability company based in Minnesota and a wholly-owned subsidiary of CHS Inc.

Boersen Farms Inc. bought the bulk of Decatur, Michigan-based Stamp Farms LLC's land-lease agreements and other assets in what was considered one of the largest farm bankruptcies ever in 2013.

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

Follow him on Twitter @toddneeleyDTN


Todd Neeley

Todd Neeley
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