Frank Brumfield believes in the Mississippi Delta.

He looks at this vast region of the Magnolia State and sees unlimited potential. After all, he knows the area like the back of his hand; he grew up on a farm in the tiny Delta town of Inverness, population 1,019. He respects the hard-working and passionate folks who settle in the Delta and make a humble living off its fertile soil.

It was almost a no-brainer, then, for Brumfield, who now lives in Chicago, to return to his beloved homeland in its hour of need. His investment firm, FSB Companies, acquired the bankrupt Express Grain Terminals, a grain storage and processing company with facilities in Minter and Sidon City. He took the flailing company and created Delta Grain Co., a new and vastly improved business.

The complicated situation may have scared away someone else, but Brumfield is a smart investor with a radar for an opportunity. He bought Express Grain’s assets in July 2022, only months after the company filed for Chapter 11 bankruptcy protection. 

Express Grain’s CEO, John R. Coleman, was later indicted on federal and state charges related to defrauding farmers, banks and the Mississippi Department of Agriculture. He allegedly altered audited financial statements to hide the company’s growing mountain of debt. Just one day before Express Grain filed for bankruptcy, company officials — with Coleman’s approval — sent an email to customers telling them the company was in good financial shape.

On the federal charges alone, Coleman faces up to 180 years in prison. His trial date is still pending, according to a recent report from DTN. Affected farmers were able to recoup a portion of their losses through a $9 million settlement, but the failure of such an economic powerhouse had disastrous effects on Delta communities, Brumfield said.

“Prior to the acquisition, we spent a lot of time with farmers who were deeply impacted by the former situation,” he said. “They were understandably emotional and devastated by what happened. They were wondering if they could trust us, and I want them to know they can. We hope they’ve seen that since Delta Grain came about.”

Circumstances have certainly improved since Brumfield and his team took the reins of the operation. When Express Grain declared bankruptcy, 35 jobs were on the chopping block. Delta Grain was able to save those jobs and add a few more, with plans for future workforce expansion, Brumfield said.

Delta Grain’s operations may be complex, but Brumfield’s vision for the company is simple.

“As a native son of the Delta, I wanted to help solve this problem if I could,” he said. “Thirty-five employees were going to be gone. Farmers need our facilities to prosper. I want to write a new chapter in this tough, tough story. We’re just naive enough to think we can go in there and build something and really create jobs and opportunities for people. That’s my vision for Delta Grain.”

Brumfield’s first goal was to restore trust with the local farming community. That is an ongoing process, but the company is currently serving about 450 farmers, “a much bigger number than last year,” Brumfield noted.

“It’s been a lot of work, but I’m incredibly pleased with our performance, our team and our farmers,” he said.

To accomplish this goal, Brumfield said he is always listening to farmer feedback. He also established an advisory board of about 50 farmers. The board offers him their thoughts on various company matters, which is a “huge deal” for farmers who were blindsided by the Express Grain situation, he said.

His second goal was to improve the existing technology and offer an unprecedented level of transparency to farmers. Brumfield said FSB Companies is continually investing in Delta Grain, particularly in the area of technology.

The company uses custom software to track its inventory and efficiency and to remove bottlenecks. Delta Grain also offers a mobile app for farmers to download on app stores. There, they can see the state of the markets, including daily bids and pricing information. They can also view their individual accounts and current contracts.

The app is always under development and utilizes feedback from farmers, Brumfield said. For example, farmers are concerned with the time it will take to unload their inventory, and they want to know how many trucks the company’s facilities are currently servicing.

Brumfield and his team took this feedback and incorporated live camera views into the app. Farmers can log in and see how many trucks are currently in line, which reduces their wait times and improves their productivity.

Such features are possible because of Delta Grain’s agile nature, Brumfield said. He added that he is a firm believer in technology’s potential to improve processes, and he said he is pleased with the improvements already made at the company’s two facilities.

“However, we can always grow and do more,” Brumfield said. “We want to make the company better than it was.”

Brumfield said he thinks the levels of transparency with farmers will help overcome the stigma associated with the company. This effort takes time and a lot of work, he noted.

“Still, we’re moving along as we can,” he said. “We’re fine with the increased scrutiny. We understand it.”

Brumfield said the company is seeing an “incredible demand” for its services this year. Delta Grain employees are currently occupied with corn harvesting season, which started earlier this month and runs well into September. After that, it’ll be time for soybeans, he said. That season runs through October.

The company’s Sidon facility is located off the main Canadian National railroad line adjacent to County Road 512. According to the Delta Grain website, this close proximity keeps a flow of grain moving through the harvest season, which unlocks valuable space for farmers.

The rail line also gives the company “strong access to several markets, allowing them to offer more competitive pricing to farmers,” Brumfield said.

The Sidon facility has a bin storage capacity totaling 3,800,000 bushels. The facility most commonly processes and stores corn and soybeans, but it also handles wheat and milo in smaller quantities.

The facility’s wet bins have a capacity of approximately 180,000 bushels. These bins allow the company to handle high volumes of high-moisture grain throughout the early periods of the harvest season, Brumfield said.

Additionally, the Sidon facility has multiple high-capacity dryers to assist in handling early-season grain. With these services, farmers can bring in their crops earlier and gain early-season basis premiums.

“This allows farmers to get crops out of the field earlier and avoid potential risks related to weather and other factors,” states the Delta Grain website.

Delta Grain’s Minter City facility has a total storage capacity of over 2 million bushels. It also offers easy in-and-out access with inbound and outbound scales, according to the website.

Brumfield said future plans are to expand capacity at both facilities and create a plan for year-round cash flow. At present, the company only sees revenue during harvest season, leaving workers with little to do in the off-season months.

“We want to use the rail facility and maximize that resource,” he said. “We’re analyzing that and looking for opportunities to expand the business.”

Despite the challenges associated with acquiring the old Express Grain, Brumfield said his passion runs deep and that he is thankful for the opportunity.

“We’ve developed a really good team that is devoted to volume, scale and efficiency,” Brumfield said. “We have no regrets. We love what we’re doing. We’re 100% committed to this company.”