John Driscoll from The Eureka Times-Standard reports that the bankruptcy mess that the California-based Humboldt Creamery faced this spring continues. Now, several organizations are seeking money from Humboldt’s former dairy farmers to pay reparations.
Now, the state is going after individual dairymen and businesses in an effort to recover assessments, fees and penalties it says they never paid. A lawsuit recently filed by the California Attorney General on behalf of the California Department of Food and Agriculture is seeking nearly $430,000 from the farmers and the association that provided milk to Humboldt Creamery.
The complaint alleges that the farmers and the association didn’t pay into a pool meant to stabilize what producers are paid, and are therefore delinquent to the tune of $276,000. The California Milk Advisory Board — which promotes and markets milk — is also owed some $95,000 in costs and late fees, the suit alleges. Inspection, administration and other fees also stand to be collected, according to the suit.
While former members of the association are expressing anger and frustration at the state’s decision to sue, they also say their own audits may tell a different story. Former association member Dennis Leonardi said that every milk plant realizes a credit or a debit to the milk pool based on its use of milk. Leonardi said an analysis of the accounting, which he described as broader than the state’s, could find that the state owes money to the producers.
He said the state has gone after individual dairy businesses because the association is just a shell today, with no assets left to seize.
“How much more can you kick people when they’re already down?” Leonardi asked.
Source: The Eureka Times-Standard