South Dakota Investors Ruined by Feedlot’s Financial Collapse

South Dakota farmers hit by a fiasco that will hinder them for decades. Continue for more.

South Dakota Farmers’ Lives Ruined by a Financial Fiasco

A simple farmer’s life is not as simple as it seems. The victims of the incident claim that Douglas County’s Blom cattle fiasco will affect farm families for generations to come. A feedlot operator, Robert Lee “Bob” Blom, got his bank account overdrawn by 1 million dollars and now owes the bank over 6.5 million, said the bank after foreclosing.

As the case shows, Blom resold the same cattle multiple times, making the matter complicated for investors looking to be paid by Blom. Over fifty individuals in more than ten cattle-related incidents in North Dakota, Montana, and South Dakota are looking for justice. The phantom cattle are valued at more than 30 million dollars, counting over 30,000 heads missing.

Farmer families are enraged by the fact that Blom evaded jail. But as of yet, Blom isn’t facing any legal charges in South Dakota on a federal level.

Blom was raised in the New Holland, S.D. He has been operating Blom Feed Yards for more than 15 years. Moreover, he and his wife would enlist investors, often farmers from families they knew, to buy cattle they would care for. They had a big, 3,000-head yard and a few other feedlots nearby. Farmers would pay him a fee for feeding and feedlot operations. Additionally, Blom would calculate a return, and he’d predict a profit of around one hundred dollars per head. Some investor families had so much profit that they encouraged other families to invest with them. However, it is unclear to this day when and what exactly went wrong.

A History of Misbehavior

Blom was arrested in a traffic accident for handling a motor vehicle under the influence of an illegal substance. The court documents said that it was an apparent attempt at self-harm, as well as to harm others. However, Blom avoided severe injuries in the crash. Moreover, the bank pointed out that Blom owed a total of over 6 million dollars plus interest at more than 1,000 dollars per day.

A Slow Market

What is more, the bank confirms that even though some of the cattle had brands of ownership, plastic ear tags weren’t helpful because of multiple intermingling of the animals. Now, the remaining heads are waiting to be resold again.

Although, Plamp isn’t satisfied with the efficiency of selling the cattle. In that regard, Dirks said he’d tried to sell more cattle but had to suspend all activities because of the lack of legal paperwork. He wanted to stop the massive over-10.000-dollars-per-day costs the feedlots were creating. That wasn’t at all helped by the fact that many investors had filed several temporary restraining orders, making the sale of cattle hard.

The Real Damage

Plamp’s total estimated loss is over 1 million dollars and even more for his family. He noted he wondered where all the money went and didn’t know if he would ever get back on his feet financially. He also notes that 2018 was the best crop of his farming career, and he barely managed to make ends meet that year.

Plamp is worried that he’s just going to work hard again and that the bank is only going to come knocking on his doors to sell him out anyway. He’s worried because he doesn’t see what else a man like him can do after a lifetime of farming.

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