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High-Profile Crash of a Titan

January 11, 2012
high profile crash
A lightning rod for controversy throughout central Illinois for the past decade, high-rent maverick Rick Rosentreter faces an uncertain future. While the Illinois producer might not be completely out of the industry, two Chapter 11 bankruptcy filings this  

Two farming companies managed by a controversial Illinois farmer declare Chapter 11 bankruptcy

For much of the past decade, Rick Rosentreter has been bad-mouthed in coffee shops and on Internet discussion boards during his race to amass a large farm operation. He became a titan farmer by accumulating some 30,000 rental acres across central Illinois just 13 years after farming only 2,000 acres. The Carlinville, Ill., farmer has been accused of driving rents to unreasonable rates and destroying the moral fabric of the surrounding rural communities.

Now, the future for Rosentreter is in doubt as his two farming companies, Illinois Family Farms and Illinois Family Farms Leasing Company, have filed for Chapter 11 bankruptcy protection. The leasing company filed on Oct. 12, 2011, followed by Illinois Family Farms LLC on Nov. 23.

A former Top Producer of the Year finalist, Rosentreter did not respond to our calls or e-mails regarding this article.

Bankruptcy isn’t necessarily the end of a farming career, but it is important to investigate what happened. To gain insight for this article, we interviewed long-time agribusiness consultant Allen Lash, a trusted mentor for Rosentreter.

One of the ways Rosentreter was attempting to stay competitive was to become a founding member of FamilyFarms LLC, a group started in 2008 by Lash.

The Brighton, Ill.-based consultant once tagged Rosentreter as one of his all-time "best students." During a 2008 Top Producer interview, Rosentreter responded to the question, What’s next for you? with a smile and said, "I don’t know, Allen hasn’t told me yet."

The History. The driving force behind Rosentreter’s quest for growth has been well documented. While drilling beans in 1998, he watched as "a parade of large equipment rolled by." As the story goes when told by Rosentreter, another area megafarmer was on his way to plant a field that Rosentreter had farmed the previous year, only to be outbid for the rental acres. He’s referred to it as the most pivotal moment in his career.

The Summer 2006 Top Producer article, "Cash in on Rent" profiled Rosentreter. In that article, he referenced his get-bigger revelation: "It was a wake-up call that my dad and I had to change the way we did business or be run over," he explained.

In addition to farming at that time, he worked in the farm management department of the Carlinville National Bank. Ironically, today he owes that bank more than $15 million, most of it unsecured.

The Carlinville bank has filed a foreclosure petition on Rosentreter’s personal household and has requested that the bankruptcy court waive its stay on foreclosures while the bankruptcy reorganization takes place. No ruling has been made.

Flawed Model? Lash says the bankruptcy proceedings should not be viewed as a failure of the FamilyFarms model, which Lash tags as a peer group with much to offer. For example, he says, if a local equipment dealer files for bankruptcy, that doesn’t mean the equipment brand is not a success. It only means the local dealer didn’t make it. A mutual decision, Lash says, was reached and Rosentreter will not continue as a member of FamilyFarms.

While Lash says he retains empathy and compassion for Rosentreter, he maintains there should be lessons taken from the downfall of the titan.

"We have learned how important control systems are," Lash says. "We have defined five control systems farmers need to implement, and we’re putting an emphasis on them."

Rosentreter’s situation shines a spotlight on the need for those systems, Lash says.

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FEATURED IN: Top Producer - January 2012

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COMMENTS (18 Comments)

wozz - IL
Here we are years later and the same being implemented by
2:05 PM Jan 1st
So who's this Alan Lash loser and and what the heck is he talking about when he says the model was not flawed?
I wonder if he advised the Greek government too?
7:37 AM Feb 18th
hope he goes to prison and has a nice big window facing farm ground so he can watch the farmers that didnt screw everyone around them enjoy farming!!!
6:35 PM Jan 23rd
Afarmer - MO
I agree with Farmeruth. My brother and I farm together. I am 45 and he 43 and I consider myself a young farmer. All the ground we rent land owners have came to us because of how we take care of our land and the land of other landlords. We have one of the highest county yield averages. We feal we have been paying a fair rent for this area also. The last couple years now the BTO's have been moving in and are ofering crazy cash rents. We havnt lost any land yet but are feeling the presure. BTO's around here are mining the land, Thank God our landlords are retired farmers and care about erosion control and fertility.
12:26 PM Jan 20th
farmeruth - El Reno, OK
Another Eastern Cattle Co! When a magazine talks about large farmers I wonder what his bushels per acre could be if he farmed a third or less and got more family time....
9:41 PM Jan 17th
farmeruth - El Reno, OK
Guys like this are true examples of what greedy people want and what they get. Think of how many young farmers could farm and make a living on land some hot shot thought he had to have to basicly SHOW OFF his back side. Many more will fall and greed ( like politicians ) will try to prevail. Its better to farm for excellents and produce the most on that acre then less on many acres. Big loses small chooses.
9:30 PM Jan 17th
metal4mizzou - Dearborn, MO
They weren't loans. They are unsecured liabilities, money he owed to vendors or landlords probably.

11:49 AM Jan 15th
metal4mizzou - Dearborn, MO
They weren't loans. They are unsecured liabilities, money he owed to vendors or landlords probably.

11:49 AM Jan 15th
metal4mizzou - Dearborn, MO
There aren't 15 million in "unsecured" loans. They are unsecured liabilities. Probably cash rents that were owed or seed that was bought but never paid for.
11:47 AM Jan 15th
metal4mizzou - Dearborn, MO
There aren't 15 million in "unsecured" loans. They are unsecured liabilities. Probably cash rents that were owed or seed that was bought but never paid for.
11:47 AM Jan 15th



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