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Local Business Calls it Quits After 19 Years
By Dave Franzman, Reporter
By
Becky Ogann
Story Created:
Apr 8, 2009 at 12:33 PM CDT
Story Updated:
Apr 8, 2009 at 5:34 PM CDT
WATKINS - An eastern Iowa business is closing it's doors after 19 years. Watkins Elevator, Inc. will close on Friday, April 10th.
Owners cite the flooding in Cedar Rapids, which closed markets for several months last summer, as well as volatile commodity prices, the failure of Xethanol Biofuels in Blairstown and overall economic conditions.
But state agriculture officials say the problems that forced the closing of the Watkins Elevator could potentially impact similar companies around the state in 2009.
The state suspended the license of the Watkins Elevator on April 1st due to financial problems. Another elevator in Lynnville is the only other state regulated grain storage and marketing facility with a suspended license.
But ag officials say 17 percent of the 400 companies with state grain licenses are on a "watch list." Those companies must submit financial information more often than the normal once a year. This is the highest percentage of troubled elevators since the farm crisis days of the early 1980's.
Bill Ballard, owner of the Watkins Elevator, believes other similar businesses in small Iowa communities may not survive the crisis either.
Farmers who had grain in storage at the soon-to-close elevator are protected from most losses by a state fund. That fund will repay farmers up to 90 percent for any financial losses at a state regulated elevator that fails.
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