Two Idaho farms are accusing a produce company of failing to pay for about $1.3 million worth of potatoes.
Jacob Silver K Farms of Rexburg and Kirk Jacobs Farms of Hamer have filed a lawsuit seeking compensation for the crop from Taylor Produce of Rigby.
The complaint alleges that Taylor Produce violated the Perishable Agricultural Commodities Act, under which brokers must keep the proceeds from crop sales in trust until growers are paid.
Capital Press was unable to reach Taylor Produce as of press time.
The lawsuit also claims that the company transferred money that should have been kept in trust to the Idaho Potato Packers Corp. of Blackfoot and affiliated firms.
The farms have asked for a court order that would force Idaho Potato Packers Corp. to disgorge those funds.
Idaho Potato Packers Corp. directed Capital Press’ questions to Taylor Produce.