• Lisa Simpson
• Nov 5,2009
• In: Foreclosed Properties

Farm in Tecumseh Facing Foreclosure

A dairy farm has been bravely battling foreclosure by offering to its customers $1,000 shares of the farm. The Iwig Family Dairy is situated on the outskirts of Topeka in Tecumseh. It is noted for selling milk in glass jugs that is available at certain specific outlets only.

Iwig informed that nearly 60 individuals offered to buy the shares of the farm – the amount being more than $40,000 the enterprise required to run the business. But that does not mean the farm is free from danger. The Farm Service Agency of the government is shy to renew the guarantee it provides to farm loans because the farm has not shown any profit for years. Until the guarantee is got from the agency the owner of the farm Tim Iwig would not be able to accept the offers for buying of shares.

He said, “They’ve got a rule book they’ve got to adhere to. But in an economic time like this, they maybe need to vary from their rule book a little bit, and help us get going here.”

The farm had made its debut in 2004. During the initial years it could not make profits because of essential construction costs. However sales continued to increase. In 2008 the farm noted its first quarter showing profits. But just then recession hit the farm as it did right across the country. Price of gas went up and the consumers began to economize by cutting down intake of best quality milk.

The milk of Iwig Family Dairy is more costly than other national brands because of the modest size of the farm and the glass jugs in which it serves the milk. Iwigs contend that the containers have made the milk taste better. He said, “We had high-priced grain in ‘08, record-high feed prices, record-high fuel, along with decreased sales volume. And when I thought that we might be getting ready to pull out of it, the milk price crashed.” In 2008 the Iwig Family Dairy suffered the loss of a third of its business.

Iwig has been trying to get the guarantee of the agency by talking with a consultant about increasing the profits of the farm. He is now planning to market the milk in plastic as well as glass containers. Milk in the plastic jugs will be cheaper. He has other plans like organizing farm tours.

David Nolle of Topeka Boy Scouts of America said, “Supporting a local dairy, supporting a local producer of any sort that’s growing something natural, is just the right thing to do. I think it’d be a loss to our community if we didn’t have the Iwigs there.”