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Alton, Ia | I'm not real clear on this, so maybe somebody else can clarify if I'm wrong, but I believe part of the problem was ethanol producers were not part of the Iowa grain dealer indemnity fund. This fund is managed by the state, and every grain dealer pays a fee into it, then when one fails or is shut down, the fund takes over and pays for grain "missing", etc. It was a loophole since they were processors not warehouses. I think it's been fixed now, but again not real clear on this. That's on of the risks with a "free price later" or deferred pricing as some call it. You are not given a "warehouse reciept" for your grain, since they are not charging storage, so in the even your grain buyer goes down you're stuck. | |
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? on Verasun going broke.
