AMES, Iowa – Iowa corn producers who have contracts to sell corn to VeraSun Energy still do not have a clear determination on the status of those contracts, following a hearing on Dec. 2 in bankruptcy court in Delaware, where VeraSun is incorporated.

Roger McEowen, director of the Center for Agricultural Law and Taxation (CALT) at Iowa State University, has been following the legal proceedings surrounding the bankruptcy filing of the ethanol producer. VeraSun operates 17 ethanol plants in eight states, including five in Iowa.

At  the Dec. 2 hearing, the Delaware bankruptcy court handling the VeraSun matter declined to set a firm date for VeraSun to determine whether it would affirm or reject corn contracts. However, after the hearing, VeraSun’s counsel announced that all contracts for seven of its eight plants requiring delivery through Jan. 15, 2009, would be rejected. Those plants include Albert City and Dyersville, Iowa.  The status of contracts for plants in Charles City, Fort Dodge and Hartley was not addressed.

Additional information on the hearing and McEowen’s interpretation of what it means to Iowa corn producers is available on the CALT Web site at  http://www.calt.iastate.edu/verasun2.html. A series of questions and answers on what the hearing means to VeraSun corn suppliers is included.

-30-