Conagra To Settle Watered-Grain Probe

ConAgra Inc. has agreed to pay millions of dollars in penalties to settle the biggest grain-adulteration probe in decades.

The Wall Street Journal reported Thursday that the Justice Department was pursuing charges against some former employees of the company’s Peavey Grain unit who sprayed water on grain stored in its elevators.

The company has said its practice of using the watering systems is designed to suppress grain dust that can fuel elevator explosions.

But the water also increases the weight of the grain, and thus its market value.

The investigation focused on whether Peavey Grain elevators around Terre Haute, Ind., and elsewhere padded profits by excessively dousing crops.