is part of the Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

  • American Agriculturist
  • Beef Producer
  • Corn and Soybean Digest
  • Dakota Farmer
  • Delta Farm Press
  • Farm Futures
  • Farm Industry news
  • Indiana Prairie Farmer
  • Kansas Farmer
  • Michigan Farmer
  • Missouri Ruralist
  • Nebraska Farmer
  • Ohio Farmer
  • Prairie Farmer
  • Southeast Farm Press
  • Southwest Farm Press
  • The Farmer
  • Wallaces Farmer
  • Western Farm Press
  • Western Farmer Stockman
  • Wisconsin Agriculturist
Corn+Soybean Digest

NCGA Provides More Answers to Growers on VeraSun Bankruptcy

The National Corn Growers Association (NCGA) has released updated information for corn growers concerned about the status of pending contracts with the bankrupt ethanol producer VeraSun.

Newly posted on the NCGA Web site (www.ncga.com) are briefing papers that update growers on how VeraSun is handling contracts, on a plant-by-plant basis, and the alternatives for growers should VeraSun sell some or all of its plants.

With regard to the former, attorneys for NCGA pont out that VeraSun generally seems to be handling grower contracts based on the original ownership of the ethanol facilities, but growers need to check with the plants directly to determine what arrangements can be made.

Should some of the plants be sold, attorneys say that while it seems unlikely that the buyer will want to assume above-market contracts, they will need a steady supply of corn and will need some amount of good will, or will at least want to avoid bad will among the local or regional producers – leaving the door open for a consensual agreement that could work to the grower’s advantage.

“In today’s volatile economy, growers who have contracted to sell grain to VeraSun need to stay completely informed about the bankruptcy process and how these contracts are handled,” says NCGA Chairman Ron Litterer. “We’re committed to ensure that the interests of U.S. corn growers are protected and their voices heard.”

As the leading association representing U.S. corn growers, NCGA has been front-and-center in the VeraSun issue. Litterer, a grower from Greene, Iowa, is leading the Ad Hoc Advisory Committee, which was formed to make certain that the views, expertise, and interests of corn growers in the VeraSun case were represented effectively before the U.S. Bankruptcy Court in Delaware and to VeraSun, and to help keep members of NCGA and state affiliates informed regarding the process and activities of VeraSun’s situation.

For NCGA’s VeraSun Bankruptcy Resource Page, visit http://www.ncga.com/verasun.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish