(Mankato, Mn.)– A bankruptcy judge in Delaware has ruled that Verasun Energy Corp., can reneg on its recent corn contracts for ethanol plants in Janesville and Welcome, Minnesota.
The ruling came over the objections of corn farmers and lenders who were concerned the ruling would destroy area farmer’s trust in the Sioux Falls, S.D.-based company. That could make it difficult for the southern Minnesota plants to maintain a corn supply when they begin operating.
Verasun has built the Janesville and Welcome plants, but neither has produced a gallon of ethanol. However, Verasun laid the groundwork for starting production by contracting with local farmers for millions of bushels of corn.
A group called the Ad Hoc Committee of Corn Suppliers says in a court filing that those farmers who have been storing corn or planning to plant corn for future contracts are now stuck in “limbo”.
(Story from the Associated Press.).
