Source: NCGA

The National Corn Growers Association 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 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 point 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