The Andersons Exits One Business Sector
A three-year decline in farm income is forcing U.S. grain handler, The Andersons, to close its retail business, affecting 1,050 employees.
The company, which buys grain, leases rail cars, and produces ethanol will be shuttering its four retail stores in the second quarter of 2017 after net farm incomes fell by 46 percent during the largest three-year drop since the Great Depression.
The surplus on a global scale has been a driving factor in weaker prices which has affected many across the agriculture sector, especially farmers.
Although the full financial extent of the closures is not yet determined, it is believed that the decision will not negatively affect the group’s grain, ethanol, or rail businesses, but will incur a pre-tax charge of between $9 and $14 million in the first half of this year.