Group of 100 farmers pressing VeraSun Energy to refine corn purchase arrangements under bankruptcy

In South Dakota, according to the director of the Center for Agricultural Law and Taxation at Iowa State University, a group of 100 farmers has objected to the formula proposed by the bankrupt VeraSun Energy to purchase and pay for new corn for ethanol processing. Under bankruptcy law, existing contracts for purchase of corn can be set aside, with court approval, and on November 14th VeraSun filed a motion describing the process by which it would evaluate contracts.

The “group of 100″ has objected to the lack of a time frame and has filed a motion in Bankruptcy Court to force the company to set a specific timetable by which corn contracts would be rejected or accepted. The company has blamed high-priced corn contracts signed in the summer, when corn prices soared, for its bankruptcy.

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