Historic Creamery Fire Sparks Legal Battle Over Unpaid Milk Checks

The demise of a historic creamery in Hastings, Minnesota, has led to a legal battle between a local dairy farmer and the creamery over unpaid milk. Valley Acres Dairy, located in Lewiston, filed a lawsuit in September after the Hastings Creamery burned down in a fire. According to court records, the creamery’s ownership group, four farmers from Otter Tail County, had defaulted on millions of dollars in loans, causing the bank to cut off funds for the creamery to pay its producers. As a result, Valley Acres Dairy claims it is owed over $800,000 in missing payments. The dairy farmer’s attorney has asked the court to block a bank from cashing milk checks. The creamery, which had already experienced financial difficulties after being kicked off the city sanitation system for dumping raw milk into the sewer, is also facing another lawsuit filed by another dairy farmer. The farmer claims the creamery erroneously deducted $600,000 from his pay for hauling milk. The lawsuits come in the wake of a challenging year for dairy producers nationwide, as milk prices hit rock bottom, and dozens of milk licenses were surrendered. The damaged creamery has yet to be fully cleaned up, and the city of Hastings has had limited contact with the creamery since the fire. The cases highlight the financial struggles faced by dairy farmers and the impact on their livelihoods when buyers fail to pay for their products.