Farmers are up in arms over the request by VeraSun Energy for a Delaware judge to give them permission to void corn contracts with a notice of 10 days.
The arguments by farmers was the action would take away their ability to sell corn to other potential buyers, while at the same time essentially killing expected revenue.
Because farmers have a contract with VeraSun, they would have to legally hold the corn until the they find out if VeraSun was continuing the contract, hindering them from lining up another buyer until a notice is officially received.
I don't have much sympathy for the farmers in this situation, as the farmers didn't mind lining their pockets with taxpayer subsidies for corn-based ethanol. When all you do is continue to beg at the government trough, and not become good at business, this is the risk you'll always take.
With the filing of the bankruptcy in Delaware, any agricultural organization or farmer would probably have to travel to the state to get legal counsel recognized by the government there. As of early Friday there hadn't been any objections filed in the case. Claiments had until 4 p.m. Friday to file.
On the 2nd of December the request by VeraSun will be reviewed at a hearing.
The entire ethanol fiasco needs to be abandoned, as it is a grotesque failure that continues to be one of the most idiotic wastes of time, energy and money.
For the quarter ending September 30, VeraSun reported a net loss of $476.1 million.
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