Farmers caught up in VeraSun bankruptcy - KWWL - Eastern Iowa Breaking News, Weather, Closings

Farmers caught up in VeraSun bankruptcy

DES MOINES (KWWL) -- The bankruptcy of Iowa's largest ethanol porducer is leaving many farmers in limbo.

"Everybody's just kind of sitting on pins and needles and hoping for the best," said farmer Pam Johnson.

Johnson is one of hundreds of Iowa farmers who supplied corn to VeraSun ethanol plants, which filed for chapter 11 protection in October. Many suppliers contracted for VeraSun to pay about $6 per bushel. But bankruptcy rules allow VeraSun to pay current market price, which is about half that.

"We won't know until delivery time if those contracts are going to be honored," said Gary Edwards, President of the Iowa Corn Growers Association.

The Iowa Corn Growers Association, along with national corn grower advocacy groups, formed a committee to protect corn farmers during VeraSun's bankruptcy hearings.

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