LINCOLN, Neb. (DTN) -- The North Dakota Department of Agriculture announced plans to distribute just more than $778,000 to 28 farmers who were left unpaid for grain sold to Nebraska-based Hansen-Mueller Company after its collapse and Chapter 11 bankruptcy filing at the end of 2025.

Total valid claims by North Dakota producers reached $1.2 million, although the trust fund created through a surety bond from the company has just $778,433.28, according to a report filed by the state of North Dakota on Wednesday.

Hansen-Mueller was a licensed roving grain buyer in North Dakota, according to an insolvency report submitted to the U.S. Bankruptcy Court for the District of Nebraska by North Dakota Agriculture Commissioner Doug Goehring -- meaning the company traveled to farms and grain facilities to buy grain from farmers.

The company filed for bankruptcy on Nov. 17, 2025, and the state of North Dakota declared Hansen-Mueller insolvent on Feb. 6, 2026, finding that "there were claimants that had not been paid for grain purchased or marketed by Hansen-Mueller and/or for grain Hansen-Mueller has been unable to deliver, originally estimated to be not less than $959,689," according to the report.

Goehring also found that the company had failed to "faithfully perform" its duties as a grain buyer, did not comply with the law and didn't pay for all grain purchased or marketed.

The claims were primarily for wheat and oats delivered to company hubs in Grand Forks, North Dakota, and Hastings, Minnesota.

According to the report, many North Dakota farmers also filed claims in the bankruptcy proceedings in Nebraska. Consequently, the state of North Dakota expects to reduce state payouts to prevent double recovery, according to the report, if those farmers are also paid through proceeds of the bankruptcy case.

The top 10 farmer recipients from the trust fund in North Dakota include Joey Potucek, $190,342; Boutain Farms, $122,800; Tyler Narloch, $75,165; Jon Rethemeier, $72,248; BB Sczepanski LP, $66,628; Kyle J. Novacek, $65,561; Kolton Kilen, $51,399; C&J Nice Farm Inc., $45,631; Dean Hoiland, $46,466; and Mark and Darla Lehmann, $45,374.

The North Dakota agriculture commissioner's office has scheduled a hearing for Sept. 10, 2026, to allow for public comment on the report.

Based on court records, there were originally 41 unsecured creditors of Hansen-Mueller in North Dakota.

The state's indemnity fund, owned and operated by the North Dakota State Treasury, is available to reimburse someone who sold grain to a licensee under a credit-sale contract but was not fully compensated under such a contract.

Assessments to the state's indemnity fund stop when the fund hits $6 million and restart if it drops below $3 million. According to the state, indemnity fund coverage is limited to 80% of a farmer's unpaid credit-sale contract, up to a maximum payout of $280,000 per insolvency.

In its bankruptcy filing, Hansen-Mueller listed an estimated 1,000 to 5,000 creditors and between $100 million and $500 million in both liabilities and assets.

In October 2025, the Nebraska Public Service Commission suspended the company's grain dealer license. The company had failed to pay nearly $2 million to 38 Nebraska farmers.

As part of an agreement with the PSC, the company announced it had paid those farmers, and the state withdrew its complaint.

As reported by DTN, reports surfaced that farmers in other states, including Texas, Alabama, Kansas and Iowa had not been paid by the company for grain deliveries.

Read more on DTN:

"Neb. Grain Company Files Chapter 11," https://www.dtnpf.com/…

"North Dakota Seeks Bond in Hansen-Mueller Case," https://www.dtnpf.com/…

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

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