(Sioux Falls, S.D.)– The new owner of some ethanol plants says it will keep operating at full capacity but doesn’t plan to honor contracts for higher-priced corn under agreements made by the former operator.
The Valero Energy Corporation bought five Verasun Energy Corporation plants…including one Hartley and Welcome, Minnesota…and one development site, after Sioux Falls-based Verasun filed for chapter 11 bankruptcy protection.
Valero is the nation’s largest independent oil refiner. A company spokesman said it bought the hardware of the ethanol plants but not the contracts, adding they will work with corn suppliers in the area.
The loss of the contracts signed with Verasun means farmers who sold corn when prices were at historic highs will get less money for their grain.
(Story from the Associated Press.).
