Corn growers were happy to have their day in U.S. Bankruptcy Court Tuesday for VeraSun Energy Corporation but the outcome was not favorable.
As expected, bankruptcy law and the ruling will allow VeraSun to reject any contracts that are economically disadvantageous to VeraSun, including corn growers’ contracts.
According to National Corn Growers Association (NCGA) Chairman Ron Litterer of Iowa, they just wanted to have their say to address issues of concern to growers. “It was doubtful that we could influence the courts to require VeraSun to pay the contracted price for our corn,” Litterer said.
“We will continue to advocate for the interests of all corn suppliers and play a role to help make the best of a bad situation,” said Litterer. “As providers of corn to VeraSun, corn growers want fair payment under fair terms for their corn, as well as a positive conclusion that allows VeraSun to stay viable as a long-term customer for our corn.”
NCGA helped form an advisory committee in November to make certain that the views, expertise, and interests of corn growers in the VeraSun case were effectively represented before the U.S. Bankruptcy Court in Delaware. The advisory committee is made up of corn growers from Iowa, Michigan, Nebraska, North Dakota, Ohio, and South Dakota.