USDA Archives - Missourinet

Rural Missouri businessman involved in “Field of Schemes” fraud commits suicide

August 20, 2019 By Brian Hauswirth

A prominent northern Missouri businessman who was sentenced to federal prison on Friday for a multi-million dollar grain fraud scheme has committed suicide.

61-year-old Randy Constant of Chillicothe also served at one time on the Chillicothe School Board.

He pleaded guilty in federal court in December in Iowa to one count of wire fraud, for a $142 million grain fraud scheme. Federal prosecutors in Cedar Rapids describe it as the “Field of Schemes” fraud, adding that it’s the largest organic fraud case in United States history.

Constant was sentenced to ten years in federal prison on Friday. Livingston County Coroner Scott Lindley tells Missourinet that he was called to a Chillicothe home Monday evening, and that he found Randy Constant dead inside the garage from carbon monoxide poisoning.

Lindley says it’s been ruled a suicide. Chillicothe Police say the investigation was conducted by police, emergency services and by Coroner Lindley.

In federal court on Friday, Constant admitted the grain fraud scheme involved more than $142 million. He also admitted that he misled customers into thinking they were buying certified organic grain when it was not organic.

Federal prosecutors and representatives from the FBI and USDA held a press conference on Monday morning in Cedar Rapids, and criticized Constant’s fraud.

Federal prosecutors say that from 2010 to 2017, he sold more than 11-million bushels of grain, and that more than 90 percent of it was falsely marketed as organic. The U.S. Attorney’s office notes that amount of grain would fill about 3,600 rail cars.

“We are proud to work alongside our law enforcement partners to bring to justice individuals who have so blatantly betrayed the trust of consumers,” FBI acting Special Agent in Charge Mark Green told reporters Monday in Cedar Rapids.

Three Nebraska farmers who were involved in the scheme were also sentenced to federal prison this week.

North Missouri businessman receives ten years in federal prison for $142 million grain fraud scheme

August 17, 2019 By Brian Hauswirth

A prominent northwest Missouri businessman and former school board member will spend the next ten years in federal prison for a $142 million grain fraud scheme, after being sentenced Friday afternoon in U.S. District Court in Cedar Rapids, Iowa.

Assistant U.S. Attorney Anthony Morfitt tells Missourinet that Randy Constant was sentenced on Friday to 122 months in federal prison, which is about ten years. Constant had faced up to 20 years in prison.

Officials from the U.S. Attorney’s office, the FBI and the United States Department of Agriculture (USDA) have called a press conference for Monday morning at 11:30 in Cedar Rapids to discuss the case. The press conference will take place at the federal courthouse.

The 61-year-old Constant is well-known across north Missouri, and is a former Chillicothe School Board member.

Constant pleaded guilty in federal court in Iowa in December to one count of wire fraud. He admits the grain fraud scheme totaled more than $142 million, and that he misled customers into thinking they were buying certified organic grain when it was not organic.

It’s unclear which prison that Constant will serve his sentence at. That decision will be up to the Federal Bureau of Prisons (BOP).

Blunt pleased with USDA’s Kansas City relocation decision (AUDIO)

August 16, 2019 By Brian Hauswirth

SEDALIA, Mo.- The United States Department of Agriculture’s (USDA’s) decision to relocate two major facilities to the greater Kansas City area is being praised by Missouri’s senior senator.

U.S. Sen. Roy Blunt (R) flips steaks at the Missouri Beef House at the State Fair in Sedalia on August 15, 2019 (photo courtesy of Missouri Cattlemen’s Association Twitter page)

U.S. Sen. Roy Blunt (R) spoke to Missourinet at the governor’s ham breakfast Thursday in west-central Missouri’s Sedalia.

“I think that’s one of the great things about the USDA deciding to move those ag research jobs from Washington D.C. to the Kansas City area with access to all our great land grant institutions in the middle of the country,” Blunt says.

USDA plans to relocate its Economic Research Service and the National Institute of Food and Agricultural Policy. U.S. Rep. Emanuel Cleaver, D-Kansas City, says the decision will draw more than 550 jobs to the Kansas City region, with average wages between $80,000 and $100,000.

Meantime, Senator Blunt is hopeful that the U.S. Army Corps of Engineers will manage the Missouri River differently.

“Since the 2004 (Corps) management plan, we’ve had moderate to high flooding every year but two, with the same rainfall we had in many years before that that didn’t produce that flooding,” says Blunt.

Blunt, Governor Parson and members of the state’s congressional delegation held a press conference on the flooding issue at Thursday’s fair. They were joined by Missouri Farm Bureau President Blake Hurst.

Parson says more than 80 Missouri levees have overtopped or breached in 2019.

Click here to listen to Brian Hauswirth’s full four-minute interview with U.S. Sen. Roy Blunt (R), which was recorded at the State Fair in Sedalia on August 15, 2019:

Rural Missouri businessman to be sentenced Friday for $142 million grain fraud scheme

August 15, 2019 By Brian Hauswirth

A northwest Missouri businessman and former school board member will learn his fate Friday morning in Cedar Rapids, when he’s sentenced for a $142 million grain fraud scheme.

61-year-old Randy Constant is a prominent businessman in north Missouri and is also a former Chillicothe School Board member.

Constant pleaded guilty in December in federal court in Cedar Rapids, Iowa to one count of wire fraud.

Constant will be sentenced by Judge C.J. Williams in federal court in Iowa.

Constant admits the grain fraud scheme misled customers into thinking they were buying certified organic grain when it was not organic.

He faces up to 20 years in federal prison and a fine up to $250,000.

Both the United States Department of Agriculture (USDA) and the FBI investigated the case.

Missouri and Kansas governors end border war; working together on USDA relocation

August 15, 2019 By Brian Hauswirth

The governors of Missouri and Kansas have signed a historic agreement that officially ends the economic “border war” between the two states. Missouri Governor Mike Parson (R) says incentivizing companies to move a few miles does not result in new jobs.

Kansas Governor Laura Kelly and Missouri Governor Mike Parson sign an agreement ending the border war on August 13, 2019 in Kansas City, Kansas (photo courtesy of Governor Parson’s Twitter page)

“I think there’s a much better use for taxpayer money that we can be utilizing,” Parson says. “And the incentives that we were doing before it seemed to me to be a waste.”

Parson says both states have spent “well over $100 million” on the border war. The two governors signed a joint commitment, during a Tuesday summit at Memorial Hall in Kansas City, Kansas.

Kansas Governor Laura Kelly (D) says the border war was a mistake. Without naming him, she says former Kansas Governor Sam Brownback (R) passed up an opportunity to end this a few years ago.

“We (Kansas) have really been through a world of hurt in the past eight years and we’ve got an economy to grow, jobs to grow, population to grow,” Kelly tells reporters.

The Kansas City-based Hall Family Foundation says more than 10,000 jobs moved between Missouri and Kansas in the past decade, with an incentive cost of $330 million.

The Kansas City Chamber of Commerce describes the agreement as a “historic day.”

Governors Parson and Kelly say they’re also working together, with the United States Department of Agriculture’s (USDA) announcement that they’ve selected the greater Kansas City area for the relocation of two major facilities.

August sentencing date set for Missouri businessman involved in grain scheme

July 7, 2019 By Brian Hauswirth

A northwest Missouri businessman and former school board member faces a potential lengthy federal prison sentence, for a $142 million grain fraud scheme.

61-year-old Randy Constant is a prominent businessman and is also a former Chillicothe School Board member.

Federal prosecutors in Iowa say Constant pleaded guilty in federal court in December to one count of wire fraud. Assistant U.S. Attorney Anthony Morfitt tells Missourinet Constant is scheduled to be sentenced by U.S. District Court Judge C.J. Williams in Iowa on August 16.

Constant faces a maximum sentence of 20 years in federal prison and a fine of up to $250,000.

Assistant U.S. Attorney Morfitt says Constant admits the grain fraud scheme is more than $142 million. Constant misled customers into thinking they were buying certified organic grain when it was not organic.

Prosecutors also say Constant admits falsely telling customers the grain he sold was grown on his certified organic fields in Nebraska and Missouri. Prosecutors say the certified organic fields were sprayed with unauthorized substances.

As part of his December plea, Constant agreed to forfeit about $128 million in proceeds from the fraudulent scheme.

Three Nebraska farmers who pleaded guilty to the scheme will also be sentenced on August 16 in Cedar Rapids. Morfitt says the three farmers, who are from Overton, Nebraska, also pleaded guilty to one count of wire fraud.

Both the United States Department of Agriculture (USDA) and the FBI have investigated the case.

Missouri Farm Bureau praises USDA’s Kansas City relocation proposal (AUDIO)

June 16, 2019 By Brian Hauswirth

The head of Missouri’s largest general farm organization is praising the United States Department of Agriculture’s (USDA) proposed relocation of two major USDA facilities to the Kansas City region.

Image courtesy of the Missouri Farm Bureau

Missouri Farm Bureau President Blake Hurst says the move will improve USDA’s customer service, by having our public servants living where their customers are.

“You know within a day’s drive of their new headquarters (in the greater Kansas City area) will be most of the corn, soybeans, wheat, rice, cotton, I mean you think about the crops, pork, beef,” Hurst says.

Hurst describes Kansas City as the heart of our farm economy.

“The Kansas City area is home to what we call the animal science corridor, just very close to some of the best plant science researchers in the world,” says Hurst.

The Kansas City Area Development Council says the Kansas City Animal Health Corridor is home to more than 300 animal health companies, representing the world’s largest concentration.

The Council says the corridor is anchored by Columbia and Manhattan, Kansas, which is where Kansas State University is located.

There is opposition to the relocation from U.S. House Majority Leader Steny Hoyer, D-Maryland, who vows to explore all options to reverse USDA’s decision.

Leader Hoyer has issued a statement, which says the proposed relocation would disrupt the work done by USDA and would hurt the morale of federal employees.

U.S. Rep. Emanuel Cleaver, D-Kansas City, says more than 550 jobs are involved, with average wages between $80,000 and $100,000.

U.S. Rep. Sam Graves, R-Tarkio, tells Missourinet the U.S. General Services Administration (GSA) will conduct a search for a site, emphasizing that nothing has been decided yet on the site.

Hurst agrees and says whether it’s located in Missouri or eastern Kansas, the Kansas City area and Missouri will benefit. He’s hoping it will be in Missouri.

Click here to listen to Brian Hauswirth’s full interview with Missouri Farm Bureau President Blake Hurst, which was recorded on June 13, 2019:

Missouri Congressman Graves optimistic about USDA moving to Kansas City region (AUDIO)

June 14, 2019 By Brian Hauswirth

The United States Department of Agriculture (USDA) has announced that it’s selected the greater Kansas City area for the relocation of two major facilities: its Economic Research Service and the National Institute of Food and Agricultural Policy.

U.S. Rep. Emanuel Cleaver, D-Kansas City, says the decision will draw more than 550 jobs to the Kansas City region, with average wages between $80,000 and $100,000.

U.S. Rep. Sam Graves, R-Tarkio, tours the MFA Rail facility near northwest Missouri’s Hamilton on October 8, 2018 (file photo courtesy of Congressman Graves’ office)

U.S. Rep. Sam Graves, R-Tarkio, who represents 36 northern Missouri counties, says it makes sense to move the USDA agencies from Washington to what he describes as “the heart of farm country.”

“This is going to take those agencies right out to the very places that they’re doing research for and trying to help and the industry they’re trying to help,” Graves says.

Missouri Governor Mike Parson (R) says the Kansas City area is closer to USDA’s farmer-constituent base. Congressman Graves, who farms in northwest Missouri, agrees. He says the move gets USDA closer to the people they serve.

“And what’s more, it gets them closer to FAPRI, the Food and Agricultural Policy Research Institute there at the University of Missouri which does a lot of the work, the research work for these two agencies,” says Graves.

FAPRI was started in 1984. Its website notes it provides objective analysis of markets and policies. One of its primary purposes is to provide decision makers with information about how policy changes or market conditions impact the agricultural sector.

While there will be efforts to block it, Graves is optimistic about USDA’s proposal to relocate to the Kansas City region. He says it underscores the quality of life in the greater Kansas City area.

“We’ve got good schools and we got good communities and safe communities and that’s what is important when it comes to attracting folks to take these positions,” Graves says.

Missouri Farm Bureau President Blake Hurst agrees, saying Kansas City “is the heart of our farm economy” and is the right choice for USDA.

U.S. House Majority Leader Steny Hoyer, D-Maryland, is blasting the move, calling it the “wrong decision.” Leader Hoyer has issued a statement, saying he’ll continue to explore all options to reverse USDA’s decision.

Cleaver expects a fight from the Maryland and Virginia congressional delegations.

Congressman Graves says the move will save tax dollars. The “Kansas City Star” reports Agriculture Secretary Sonny Perdue says the relocation will save USDA about $300 million over 15 years.

Graves tells Missourinet the U.S. General Services Administration (GSA) will conduct a search for a site, emphasizing that nothing has been decided yet on the site.

Graves also emphasizes that it’s been a bipartisan effort in Missouri to land the jobs, crediting both Congressman Cleaver and U.S. Rep. Vicky Hartzler, R-Harrisonville.

Click here to listen to Brian Hauswirth’s full interview with U.S. Rep. Sam Graves, R-Tarkio, which was recorded on June 13, 2019:

Governor Parson says Missouri and Kansas have both spent more than $100 million on border war

June 13, 2019 By Brian Hauswirth

Legislation aimed at ending the economic “border war” between Missouri and Kansas has been signed into law this week by Governor Mike Parson (R) in Kansas City.

Missouri Governor Mike Parson signs SB 182 into law on June 11, 2019 at Kansas City’s Union Station (photo courtesy of Governor Parson’s office)

The Bolivar Republican notes the legislation, which is Senate bill 182, will only take effect if the Sunflower State passes a reciprocal agreement.

“I’m very positive, very optimistic right now that we’re going to come to some sort of an agreement between Missouri and Kansas on this,” Parson says.

Governor Parson signed the bill this week at Kansas City’s historic Union Station, telling reporters he has a good working relationship with Kansas Governor Laura Kelly (D) and that additional meetings will take place. He says he’s met with Kelly and has also spoken to her on the phone.

Parson tells reporters that incentivizing companies to move a few miles does not result in new jobs for Missouri or Kansas.

“We’re spending a lot of taxpayer money to do initiatives for businesses on the border of Kansas and Missouri and sometimes we’re not getting very much gain for that,” says Parson.

The legislation, which is sponsored by State Sen. Mike Cierpiot, R-Lee’s Summit, impacts companies moving between Johnson, Miami and Wyandotte counties in eastern Kansas and Missouri’s Cass, Clay, Jackson and Platte counties.

The Kansas City-based Hall Family Foundation says more than 10,000 jobs moved between Missouri and Kansas during the past decade, with an incentive cost of $330 million. The jobs all moved in the Kansas City region.

“I think Missouri has spent well over $100 million on this, Kansas has spent well over $100 million,” Parson says. “There’s no reason we can’t be using that money for a lot better purposes than just jumping from one side of the state (line) to the other.”

Governor Parson tells reporters he’s optimistic he’ll reach an agreement with Kansas Governor Laura Kelly on this.

As for Governor Kelly, she’s issued a statement echoing Governor Parson’s comments about the irresponsible spending by both states, “with little actual job growth for either state.”

Kelly also emphasizes that the two states must work together to attract business and jobs.

“We’re encouraged by the renewed spirit of cooperation and collaboration between the two states. The recent joint proposal to attract United States Department of Agriculture operations to the Kansas City metro area is a prime example of progress on that front,” Kelly’s statement reads, in part.

This issue has been debated for years in the Missouri Legislature, with former House Speaker Tim Jones, R-Eureka, and former State Rep. Kevin McManus, D-Kansas City, leading an unsuccessful effort in 2014.

Kansas City, St. Louis among narrowed list for future USDA research sites

May 3, 2019 By Alisa Nelson

Cattle (photo courtesy; Aubrey Fletcher via Missouri Department of Agriculture)

Kansas City is among the three finalists and St. Louis is still in the running for the future sites of two USDA research agencies. Federal officials are looking to move the Economic Research Service (ERS) and National Institute of Food & Agriculture (NIFA) sites out of Washington, along with roughly 7,000 reported federal jobs.

U.S. Senator Roy Blunt, R-Missouri, commends the announcement.

“As a national ag leader, Missouri would be a great fit for ERS and NIFA. Both Kansas City and St. Louis are great places to live and work, and are close to some of the top agricultural research institutions in the country. This is an encouraging announcement and I hope USDA will consider all the benefits Missouri brings to the table as the selection process moves forward,” Blunt says in a press release.

Indiana, North Carolina and Wisconsin are also competing for the sites.