Current ICGA directors and staff are monitoring the VeraSun situation, meeting with key Iowa officials, and taking steps to keep ICGA members informed of the latest developments.

Update as of December 5- A group of more than 100 corn growers is challenging bankruptcy provisions that threaten corn sales contracts for October, November, and December. Ron Litterer, a past ICGA president and current NCGA chairman, said the Iowa Corn Growers Association and the National Corn Growers Association hope to serve as a voice for corn growers and advocate for farmers’ interests.

That includes serving to organize the only corn grower ad hoc committee that was officially recognized by the courts. The judge in the proceedings welcomed the corn grower committee and told lawyers for VeraSun yesterday to make sure that phone calls from corn growers and their lawyers are answered. In addition, a specific lawyer from VeraSun was assigned to corn grower issues.

Key Proceedings:

1. The group lead by NCGA and under Ron Litterer’s name successfully filed an objection to the contract with a 10 day notice from VeraSun.

2. In prepared statements presented both orally and in written form stressed the complex issues facing farmers in terms of contracts. In response, the court ordered the debtor to carefully consider the unique circumstances of each particular grouping of farmers and their unique situations. This included the differences between different states with VeraSun locations.

3. An ad hoc committee representing the interests of all corn growers impacted by the bankruptcy was announced and subsequently acknowledged by the courts and the debtor.

4. The committee has representation from 6 corn growers from the different state corn grower associations and the National Corn Growers Association. They will be serving in an advisory role between the court and corn growers who are impacted or will be impacted. The committee also has the opportunity to give advice and council on options, rulings, or alternatives.

Potentially thousands of corn growers from Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota and other states could be affected.