LINCOLN, Neb. (DTN) -- Twelve Nebraska farmers are expected to receive 90% of what they're owed on claims made against a $1 million bond paid to the state by Hansen-Mueller Co.

The Omaha-based company filed for Chapter 11 bankruptcy protection at the end of 2025.

The Nebraska Public Service Commission recommended approval of the 12 claims during a hearing on Thursday to review the bond claims.

When Hansen-Mueller filed for bankruptcy 13 days after the settlement with the state, the 12 farmers were left unpaid for the entirety of their contracts with the company.

Terri Fritz, grain director of the PSC's Grain Warehouse and Dealer Division, said so far, no other Nebraska farmers have filed claims.

The total claims made against the $1 million bond were about $1.1 million. That amount included about $2,200 paid by the Nebraska corn checkoff. Because the claims exceeded the bond, the 12 farmers will receive 90 cents on the dollar for their claims.

Brian Schafer, a farmer from Culbertson, Nebraska, had the single-largest claim at nearly $447,000.

In December 2025, Schafer asked the court to declare void the contracts he had with the company to deliver about 1 million bushels of corn by the end of 2026. Schafer already delivered more than 102,000 bushels to Hansen-Mueller.

Bonifas Agri Inc. based in Aurora, Nebraska, is expected to receive about $234,000. The remaining 10 claims range from about $2,800 to $82,000.

The Hansen-Mueller saga began when a grain dealer in Kansas filed a complaint of nonpayment on a grain delivery with the Nebraska PSC on Oct. 21, 2025.

On Nov. 4, 2025, the PSC approved a negotiated agreement with Hansen-Mueller to reinstate its grain dealer license. That reinstatement came after the company paid $2.1 million to Nebraska farmers who had not been paid and provided proof of a line of credit.

Fritz said during the hearing farmers were not made whole in the Hansen-Muller deal.

That's because the $2.1 million covered what 38 producers were owed at the moment of the November settlement, as the 12 farmers had ongoing contracts with the company on grain that were still being priced or delivered after the agreement was signed.

"Some of them were still owed additional money that had not been priced or delivered," Fritz said.

"So, they were initially paid what was owed at that time and then there was additional money that was owed after that payment because they priced or continued deliveries."

Fritz said the PSC visited Hansen-Mueller's Omaha offices on Oct. 23-24, 2025, and found the company was not meeting payment obligations, which led to the state temporarily suspending the company's grain dealer license.

The license expired on Jan. 1, 2026, and was not renewed by Hansen-Mueller, according to Fritz.

Fritz said the 12 farmers being paid with the bond also filed claims with the U.S. Bankruptcy Court of Nebraska. She said all of them will be required to notify the bankruptcy court.

Nebraska has the highest amount of any bond in states dealing with the Hansen-Mueller bankruptcy, Fritz said. Iowa, for example, has a bond of about $300,000, but supplements it with an indemnity fund.

Fritz said proving the claims of the 12 farmers was difficult and when asked by the commission if the company had been helpful, she responded: "They were at the beginning, yes. Towards later on, it was a little harder to get some of the documents that we needed. Hard to get a hold of anybody right now."

While USDA had the largest total bond security of about $22.6 million in the Hansen-Mueller case, Fritz said that amount was spread across many locations with just a payout of $500 per location.

DTN has reached out to Hansen-Mueller for comment.

Read more on DTN:

"Farmer: Hansen-Mueller Misled Nebraska," https://www.dtnpf.com/….

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

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