All Posts from September 10, 2012

CHS and Mountain View Co-op to build fertilizer warehouse

CHS Inc. and Mountain View Co-op, Black Eagle, Mont., announced on Sept. 10 that they have formed a limited liability company to build a 35,000-ton dry fertilizer warehouse at Collins, Mont. Construction on the warehouse is underway, with completion expected mid-summer 2013.

Products stored at the new facility will include urea, phosphates, potash, ammonium sulfate, and micronutrients. Mountain View will be the facility’s exclusive fertilizer retailer, serving growers throughout its trade area in north-central Montana.

“Over the years, we’ve noticed a continued shift to earlier planting, and an increase in the time it takes fertilizer manufacturers to get products to us to meet growers’ needs,” said Bruce Clark, Mountain View’s general manager. “This new facility will enable us to meet our growers’ increased demand for nitrogen and sulfur products, to ensure healthy, profitable crop production.”

CHS said the new warehouse supports its strategic aspirations of investing in projects that leverage cooperative enterprise capabilities and focus on grower needs.

“Urea normally produced and shipped from Canada is increasingly being used locally by Canadian farmers, greatly limiting product availability,” said Cheryl Schmura, CHS vice president, Crop Nutrients. “The strategic location of the Collins fertilizer hub plant means customers in this region will have secure, competitive supply.”

Mountain View operates 10 agronomy locations within a 100-mile radius of Great Falls, Mont., serving farmers growing dryland winter wheat and barley, malt barley, and irrigated hay.

Scotts to pay over $10 M in fines

The Scotts Miracle-Gro Company on Sept. 7 finalized settlement agreements with the U.S. Department of Justice (DOJ) and the U.S. Environmental Protection Agency (EPA) related to certain company products distributed and sold through 2009.

Following a Friday afternoon hearing in U.S. District Court in Columbus, Ohio, ScottsMiracle-Gro Chairman and CEO Jim Hagedorn said the DOJ’s investigation identified conduct that was not consistent with the company’s core values, but ultimately resulted in improvements to the company’s regulatory compliance programs.

"As we reach closure on these issues, it’s important for all of our stakeholders to know that we have learned a lot from these events and that new people and processes have been put in place to prevent them from happening again," Hagedorn said. "Our consumers are at the heart of our business, and I hope they’ll see that our openness, cooperation, and acceptance of responsibility are all a part of our commitment to provide products they can trust and rely upon."

In 2008, the company conducted a voluntary recall of its wild bird food products when it discovered that they had been treated with a pest control product not authorized for use on wild bird food. The company also voluntarily disclosed the matter to the government.

Later that same year, in an unrelated matter, the company recalled several additional lawn and garden products – which were safe to use as directed and did not harm consumers or the environment – after it was discovered by the EPA that a former associate had created fraudulent documentation that allowed them to be sold without proper approval from the agency. The former associate has pleaded guilty to federal crimes related to these activities and awaits sentencing. She has repeatedly acknowledged to law enforcement authorities that she acted alone.

On Friday, U.S. District Judge James L. Graham accepted the company’s plea agreement related to misdemeanor charges associated with product registration issues and wild bird food products. That agreement includes a fine of $4 million, with $500,000 in community service.

"While no one else in the company knew about the illegal activities of one of our associates, the company nonetheless bears the responsibility for her actions, and for that we apologize," Hagedorn said.

Separately, the company entered into a civil administrative agreement and agreed to pay a fine of $6.05 million related to some of the company’s product registration records. While the company stressed that the agreement neither admits nor denies the allegations, it believes concluding the matter is in the best interest of the company, its shareholders and its associates.

"In both the civil and criminal cases we have fully cooperated with the government and have accepted responsibility for these events," Hagedorn said. "This has been a difficult time for us and we are glad to have put it behind us. I want to thank our associates who committed themselves to resolving this matter and I also want to thank both the EPA and DOJ for the professional way in which they handled it."

ScottsMiracle-Gro has posted an open letter from Mr. Hagedorn on its website, www.scottsmiraclegro.com that provides additional context around both the criminal and civil matters and also addresses the company’s efforts to prevent a repeat occurrence.

In addition to the fines, the company also committed in the settlements to provide funding for several important environmental projects. It will provide $100,000 each to the Ohio Audubon’s Important Bird Area Program, the Ohio Department of Natural Resources’ Urban Forestry Program, the Columbus Metro-Parks Bird Habitat Enhancement Program, the Cornell University Ornithology Laboratory, and the Nat