LUBBOCK, TX — Attorneys representing Texas grain producers today announced the filing of an Emergency Motion to Implement Section 557 Procedures in the Hansen-Mueller Co. Chapter 11 bankruptcy, calling on all grain producers across the United States who sold grain to Hansen-Mueller and remain unpaid to immediately review and assert their rights in the case. Hansen-Mueller, a multi-state grain buyer and merchandiser, filed for bankruptcy protection on November 17, 2025, leaving farmers in numerous states owed millions of dollars for grain delivered in the ordinary course of business.
The Emergency Motion seeks to invoke Section 557 of the Bankruptcy Code, a special producer-protection statute Congress enacted to ensure that disputes involving grain and grain proceeds are resolved quickly and fairly. Section 557 requires the bankruptcy court to implement expedited procedures, including:
- Immediate accounting of all grain and proceeds;
- Segregation of producer-related proceeds in a protected account;
- A rapid determination of the priority and validity of producer liens;
- Ensuring that producers’ statutory lien rights are not overridden by the Debtor’s lenders.
“Producers across the country need to know that they have powerful statutory rights—but they must assert them now,” said counsel for the Texas producers. “Section 557 exists specifically to protect farmers in cases like this. Strength is in numbers. The more producers who participate, the stronger the collective voice to ensure that grain proceeds are not swept away before producer rights are honored.” States implicated include Texas, Iowa, Minnesota, Nebraska, Kansas, Oklahoma, South Dakota, North Dakota, Wisconsin, and others where Hansen-Mueller purchased grain.
Producers who delivered grain to Hansen-Mueller and have not been paid are strongly encouraged to:
- File a proof of claim before the January 26, 2026 deadline;
- Consult counsel regarding state agricultural lien rights, which in many states—including Texas—may give producers priority over the company’s secured lender;
- Monitor the Section 557 proceedings, which will determine how grain proceeds are distributed;
- Coordinate with other producers to ensure their interests are heard by the Court.
“Farmers should not stand alone in this process. The bankruptcy court will be making decisions in the coming days that directly affect whether producers recover pennies—or something much closer to what they are owed,” counsel added. Producers seeking more information may contact: David R. Langston, Attorney for Texas Producers Mullin, Hoard & Brown, LLP Telephone: 806-765-7491; Email: dlangston@mhba.com
