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SD Commission Considers Gregory Elevator Licenses

March 29, 2013, 6:48 AM
Updated: March 29, 2013, 1:18 PM

The South Dakota Public Utilities Commission has suspended the licenses of a financially troubled grain elevator in Gregory.

The three-member commission voted unanimously Friday to immediately suspend the grain buyer and grain warehouse licenses of the Gregory Farmers Elevator. The licenses will be revoked permanently in 15 days unless the elevator requests a hearing, but the elevator's board chairman did not contest the suspension in Friday's hearing.

Jim Mehlhaff, director of the commission's Grain Warehouse Division, says the elevator got into trouble because of bad decisions by former elevator managers.

Mehlhaff says the elevator still has a net worth that will allow it to pay the farmers who sold grain to the elevator.

The elevator's board chairman, Sherman Vomacka says there's a chance another cooperative will buy the elevator.

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