The Monsanto Company has filed suit in U. S. District Court, Eastern District of Missouri, against Boersen Farms, claiming the farm operation owes it more than $2.3 million for seed purchased on credit in 2016.
Monsanto claims in the court filing that Boersen “purchased a total of $2,359,071.33 on credit under the Farmflex financing program and was obligated to remit full payment… no later than Nov. 25, 2016, to avoid financing charges.” Past-due accounts, the filing said, accrues “interest at a rate of 1.5 percent per month until paid in full.”
As a result of the alleged failure to pay, Monsanto claims that “Boersen has been unjustly enriched and obtained profits that in equity and good conscience belong to Monsanto.” Monsanto also seeks a court judgment for that total, “plus interest and attorneys’ fees and other collection costs.”
The suit claims that for the 2016 crop year, Boersen “purchased DEKALB, Asgrow and/or other Monsanto branded crop seed” through Crop Production Services (CPS) on credit.
The suit, filed Oct. 4, claims that when Boersen entered into the “Monsanto Technology Stewardship Agreement (MTSA), he agreed to “pay all applicable fees due to Monsanto for the purchase of seed.”
Boersen was issued a “summons in a civil action,” the court document claims.
The suit comes on the heels of several other lawsuits, including the original suit filed by CHS, which claims it is owed a reported $145 million, and the estimated value of the crops Boersen still has in the field is $50 million. CHS claims in the complaint that it is “faced with the imminent loss of $50 million of its collateral…”
Anecdotal reports from various parts of the state in which Boersen farmed indicate that the 2017 crops have not yet been harvested.
To date, Boersen has not filed for bankruptcy.