Vernon County Commission approves final agreement with ADM

The Vernon County Commission conducted a conference call with attorney Deborah Polk on Tuesday, and approved changes to the performance agreement and lease agreement regarding the Archer Daniels Midland acquisition of the Prairie Pride soybean crushing and biodiesel facility in Deerfield, Mo.

The commission "signed ordinances and agreements" that were needed for the receipt of the payments to the county that ADM has agreed to make, according to Presiding Commissioner Bonnie McCord.

Much of the agreement was hammered out in April, but there have been some changes in the intervening time. The county is now clear to receive its first payment of $500,000 as a penalty for the Payment on Lieu of Taxes that Prairie Pride failed to make.

According to Vernon County Treasurer Phil Couch, the money will be divided amongst several entities. Vernon County will put 2.5 percent, or $12,500, into the general revenue fund and 1.5 percent, or $7,500 will go the county assessment fund. The county will also hold $10,000 for expenses and another $30,000 for appraisal leaving a sum of $440,000 to be distributed.

The state of Missouri will receive $2,640; the county, $15,092; the Vernon County Health Department, $8,800; the Vernon County Ambulance District, $13,200; Coal Township will get $8,800 plus $30,000 for the township road levy and another $30,000 for the special road levy. The Nevada R-5 School District will receive the bulk of the money because its share comes to $329,868. The yearly PILOT will be $250,000 until 2031, at which time PILOT payments will cease.

Changes to the performance agreement have pushed the promised $5 million in improvements to Jan. 1, 2013 instead of the original deadline of April 1, 2012. Those improvements will be taxed at a 50 percent rate and later changes will be taxed at 100 percent. The details on the number of employees that the facility will hire and keep remain the same.

ADM will have a minimum of 30 employees at all times during the 2011 test period and increase that number of full-time, year-round jobs at the project to 35 beginning in the year 2012. Commission members weren't sure when the payment would be made; but these changes were the final obstacle to receiving the money.

Prairie Pride has been operating in Vernon County for about five years. It is a producer cooperative formed to convert member and locally-grown soybeans into biodiesel fuel and soy meal for use in agriculture. The Deerfield plant began producing fuel in late 2007 and processing beans in 2008.

ADM is an agricultural titan that employs nearly 30,000 people. The company converts crops into renewable products that meet the demands of the world. The company has a diversity of agricultural interests and markets in more than 60 countries. Their net sales for the fiscal year ending in June of 2010 were $62 billion.