Bankruptcy judge clears way for $209 million LDS church take over of Easterday farms

AgriNorthwest will soon add 18,000 acres to its agricultural land in Eastern Washington with the approved sale of Easterday properties.

A U.S. Bankruptcy Court judge on Wednesday signed off on last month’s winning bid by Farmland Reserve Inc.

The investment arm of The Church of Jesus Christ of Latter-day Saints — which also is the parent company of AgriNorthwest in Kennewick — came in with $209 million in a private auction. It is a nonprofit corporation based in Salt Lake City.

“Our successful bid reflects our long-term commitment to Columbia Basin agriculture,” Farmland Reserve CEO Doug Rose said in a news release. “We will be growing crops on these fertile fields for decades to come.”

The property is in the southeast corner of Benton County, along the Columbia River near Wallula Gap.

Documents show the property includes: Goose Gap Farm; River Farm; Nine Canyon Farm; Cox Farm; a farm manager house for employee housing; and a storage complex with potato and onion facilities.

Bankruptcy and fraud

Easterday Ranches, Easterday Farms and the family that has long run the agriculture conglomerate was forced to sell the large swath of farmland after the two business operations filed for bankruptcy protection in February.

The bankruptcy filings came one month after Easterday Ranches was sued by Tyson Foods for bilking the meat processor out of more than $225 million.

Cody Easterday — president and chief executive officer of the family’s companies — has since admitted concocting the scheme to defraud Tyson and another company in what federal prosecutors have dubbed a “ghost-cattle scam.”

The total loss was more than $244 million.

The money was used to offset about $200 million lost in commodity futures contracts trading.

He is facing up to 20 years in prison at sentencing in October.

Similar soils, crops

Most of the Easterday properties sold at the recent auction immediately adjoin AgriNorthwest, which has been growing crops in Eastern Washington since 1968 and already has 100,000 acres.

With the purchase, AgriNorthwest will get 18,000 more acres, including 12,000 irrigated acres. Prime Columbia River water rights were included in the sale.

“We have been neighbors to the Easterday property for more than 50 years,” said Pat Tolman, AgriNorthwest vice president. “The close similarity of soils and crops grown represents a unique opportunity for these lands to be combined almost seamlessly with AgriNorthwest.”

Over the past 53 years, the farm has demonstrated its commitment as a sustainable producer who cares for the land and water that make harvests possible, according to the company news release.

“We look to the long term in everything we do at our company. We want our farms to be just as productive a hundred years from now as they are today, if not more so,” added Rose.

“Our employees have meaningful jobs where they earn market-rate wages and salaries with generous benefits. The communities where we live and work know they can count on us to be engaged citizens and caring neighbors.”

AgriNorthwest anticipates closing on the purchase in the next few weeks now that it has Chief Judge William L. Holt’s approval of the bid.

This story was originally published July 16, 2021 at 5:00 AM.