PLAINVILLE — Grain Processing Corp. has struck a deal to lease the Plainville grain elevator from Boyd, Inc. Financial terms and the length of lease were not made public, but GPC began operating the facility on Monday under the name of Kent Grain.
"This is a great opportunity for GPC to secure the corn supply near our Washington, Indiana, production facility for both now and in the future," said GPC Director of Commodities Procurement Mark Heckman in a release from the company.
The Plainville elevator is one of the three largest grain facilities in Daviess County. GPC's mill is the largest while the second largest is the Perdue feed mill. Even with GPC taking over operations of two of the county's largest grain buyers farmers were not expressing much concern about the impact. During the past 18 months Farbest Foods has also opened a large grain mill in nearby Knox County which leaves plenty of competition for area corn. "GPC has always been a little more competitive in its price for grain," said farmer Mike Myers. "For the most part the price is set by the markets and the local buyers react to that."
The Plainville elevator can hold 2.6 million bushels of grain. The addition will nearly double the company's storage capacity in Daviess County. The company contends between GPC and Kent Grain it will be well equipped to handle the upcoming harvest with two locations.
Tom Boyd purchased the elevator in 1995. "As I considered getting out of the grain elevator business, GPC was the logical choice," said Boyd. "I want the elevator to continue to operate in the best way for the producers and add value to our farming community. From dealing with GPC for the past 16 years here I know they will do this."
The pending deal has been fodder for a lot of conversations among area farmers. "A lot of the guys were talking about it," said Myers. "I am glad to hear they will keep Plainville open. We've always had good service from both GPC and Plainville so we expect that to continue."
The Plainville elevator under Boyd purchased grain from some 1,200 producers in the area and they should not see many changes under the new management, the release said. "We have some of the best people that work at the elevator with a combined total of 69 years of service," said Boyd.
"You will see the same familiar faces at the elevator and experience the same customer service," said Heckman.
Kent Grain is taking over all contracts and obligations from Boyd as part of the lease agreement.