ADM buys struggling Keystone elevator

A 104-year-old grain elevator in Keystone that the state closed June 4 after some of its checks bounced is back in business after being acquired by Archer Daniels Midland Co.

ADM operates a large corn-milling operation in nearby Cedar Rapids that generates huge demand for grain.

“ADM has bought the facility and was licensed there last week,” said

Ron Cook, field supervisor for the Grain Warehouse Bureau of the Iowa Department of Agriculture and Land Stewardship.

The Grain Warehouse Bureau had suspended Keystone Mercantile's grain dealers license on June 4 for violating state regulations intended to ensure that grain elevators have enough money on hand to pay grain sellers.

A hearing on the suspension has been canceled and the old Keystone Mercantile grain license revoked, Cook said.

Decatur, Ill.-based ADM is one of the world's largest grain processing companies.

In a statement, ADM said it plans to continue the elevator's long tradition of outstanding service and adding value to area farmers and the community. The purchase price was not disclosed.

“The company's success is a result of the hard work of its employees, and ADM looks forward to continuing this tradition of providing outstanding service to the local agricultural community,” said Beth Chandler, spokeswoman for ADM, in a statement.

Keystone Mercantile has 1.9 million bushels of grain storage capacity.

It also has feed and lumber businesses.

The price ADM paid for the business was not disclosed.

ADM referred farmers with questions about their cash grain contracts with Keystone Mercantile to ADM Grain at (319) 442-3228.

Located in southwestern Benton County, Keystone has a population of 687.