NC State Senator’s Family Farm in Receivership Amid $40 Million Loan Default
NASH COUNTY, NC – Barnes Family Farms Corp., one of the nation’s largest sweet potato growers and a long-standing symbol of agricultural success in eastern North Carolina, has been placed under court-appointed receivership. The family business, tied to prominent state figures, defaulted on $40.8 million in loans, raising questions about its financial management and the broader implications for its owners.
Farm Under Receivership
The Nov. 6 ruling by Superior Court Judge Timothy Wilson handed control of Barnes Family Farms Corp. and associated businesses to a receiver, Glenn Karlberg, a restructuring adviser with Utah-based Ampleo. This move came after the farm failed to meet the terms of multiple loans from Rabo AgriFinance, a subsidiary of Dutch agriculture financing giant Rabobank.
The order grants the receiver sweeping authority to manage, control, and liquidate the assets of the family’s businesses, including vast real estate holdings, equipment, and financial accounts. The receiver’s responsibilities extend to paying utility bills, securing properties, and recovering lost proceeds, with the authority to call on local sheriff’s offices to enforce compliance.
High-Profile Owners
The farm is owned by Johnny Barnes, an NC State University Board of Visitors member, and his wife, State Senator Lisa Stone Barnes. The Barnes family business, based in Spring Hope, operates across 21,500 acres in five counties, growing crops such as sweet potatoes, peanuts, and tobacco. For over six decades, the farm stood as a symbol of agricultural innovation and success.
Johnny Barnes, a graduate of NC State’s agricultural economics program, built on his late father Carson Barnes’ legacy, transforming the small family farm into a powerhouse in the sweet potato industry. He also holds leadership roles with organizations such as the American Sweet Potato Marketing Institute and the North Carolina Farm Bureau.
Lisa Stone Barnes, a Republican representing District 11, which includes Franklin, Nash, and Vance counties, serves on the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources. The irony of her prominent role in agricultural policy, while her own family’s farm falters financially, has not gone unnoticed.
Financial Collapse and Legal Implications
Court filings reveal a grim financial picture. The Barnes businesses defaulted on six loans, with the debt accruing interest, fees, and penalties. According to the court order, Johnny and Lisa Barnes had signed personal guarantees on the loans, ensuring full repayment. Despite a forbearance agreement in September 2023, which included a provision consenting to receivership in the event of non-payment, the couple failed to meet an October 15 deadline.
The court documents allege that farm proceeds and rents were not properly collected or applied toward loan repayment, leading to significant financial losses. The farm’s assets will now be sold to repay the outstanding debt.
Calls for Accountability
The Barnes’ inability to manage their financial obligations comes as a blow to their reputation and raises questions about their leadership capabilities. Neither Johnny nor Lisa Barnes responded to requests for comment. Representatives for Rabo AgriFinance and the Barnes family’s legal counsel also declined to provide statements.
Looking Ahead
The receivership aims to recover losses for Rabo AgriFinance while ensuring the farms’ assets are preserved and liquidated efficiently. This marks a significant shift for Barnes Family Farms, which, for decades, was celebrated for its contributions to North Carolina agriculture.
As the process unfolds, attention will focus on how this financial downfall affects the Barnes family’s political and public standing, particularly given Lisa Stone Barnes’ influential role in shaping state agricultural policy.