February 9, 2012

Corn Growers file in VeraSun bankruptcy case

The Iowa Corn Growers Association along with the National Corn Growers Association have filed a formal objection to the bankruptcy proceedings involving VeraSun, an ethanol producer with five plants in Iowa.

Mindy Poldberg, director of government relations for the Iowa Corn Growers, says the farm groups hired lawyers and filed documents in the federal court in Delaware that’s handling the bankruptcy.  "It will be very difficult for any individual farmer to be able to be involved in this case due to the travel to Delaware and the expense involved in being involved in this case," Poldberg says. "We also believe that — even if an individual Iowa farmer does not have a contract with VeraSun — because of the size of the entity that VeraSun is, what happens in this case will affect our Iowa market."

The Corn Growers’ lawyers listed more than 100 Midwest farmers who have contracts with VeraSun to deliver grain to VeraSun’s ethanol plants. "The court requires that you list individuals that have an opportunity to have a loss in the case which is why you have to list some peoples’ names," Poldberg says. "But our reason for getting involved is not on behalf of individual people, but because so many corn growers are going to be affected and it’s to represent corn growers in general."

It is doubtful the corn growers’ attorneys will be able to get the court to force VeraSun to pay the full price on contract sales of corn since the company is going through bankruptcy. But there are other issues that can be raised, such as getting VeraSun to release some farmers from contracts so they may sell their corn elsewhere. "One item we would like to discuss with the court is what procedures are fair for a farmer as well as for the company," Poldberg says.

According to Poldberg, thousands of corn growers could be affected by the decisions made by the bankruptcy court. VeraSun operates 16 ethanol plants, including plants in Albert City, Charles City, Dyersville, Fort Dodge and Hartley.

People expected to stay closer to home this holiday

Even though gasoline prices are at their lowest point since before Hurricane Katrina hit more than three years ago, many Iowans aren’t planning on going very far from home for the upcoming Thanksgiving holiday. Mitch Beaumont, spokesman for Triple-A-Iowa, says the faltering economy is putting a damper on the travel plans of many Americans.

Triple-A projects 41-million Americans will be traveling over Thanksgiving, a decrease of 1.4% from last year. It’s the first time since 2002 there’s been a projected decrease in travel for Thanksgiving. That’s a drop of 600,000 travelers from last Thanksgiving. Beaumont says it’ll be the fourth consecutive holiday this year where the travel numbers are expected to fall.

The reasons can be tracked to consumer confidence as people have less money to spend, Beaumont says, while there are higher airfares and fewer airline seats available as the number of flights has been reduced. Still, many Iowans are planning vacations for this holiday weekend and for next month. Beaumont says it’s a buyer’s market.

"If you have the time and if you’re flexible in finding seats on the flight, there are some fabulous deals out there," he says. Gasoline prices statewide are averaging a $1.77 a gallon, about 11-cents a gallon below the national average. The state average a year ago was three-oh-four a gallon. The cheapest gas in the state is in Des Moines at a $1.65, while Cedar Rapids has the highest average in Iowa at a $1.85.

 

Effort on to meet fundraising goal for Ankeny to Woodward trail and bridge

The Iowa Natural Heritage Foundation is making a final push to raise money to pay for an Ankeny to Woodward recreational trail the features a unique bridge. Spokesperson, Lisa Hein, says nine public entities are working with the foundation to establish the 25-mile trail.

She says they have a one-point-75-million dollar state challenge grant from Vision Iowa, and to get those funds, they need to raise $550,000 by December 10th. The $550,000 is part of an overall goal to reach a one-million-dollar goal by next July, and they have about $90,000 left to raise.

Hein says a large portion of the trail has already been completed, but the centerpiece bridge remains to be built. Hein says there’s about three miles of trail left to complete along with the bridge over the Des Moines River, which will be a half mile long and 13 stories high, and provide "spectacular views of the Des Moines River Valley."

Hein says the bridge in itself is expected to draw a lot of interest. "From what we can tell it will be the fifth largest trail bridge in the world, it will be open to pedestrians and bicyclists," Hein says. She says there are some bridges that are longer, and some higher, but the combination of both make it one of the most unique in the midwest.

Hein says you can donate on-line at the Iowa Natural Heritage Foundation’s website . She says they have a direct link on the site to the project, or you can call their office at: 515-288-1846. The foundation is also holding information meetings called the "Bridge Blitz" in cities along the trail as the fundraising deadline approaches.

Here is a meeting schedule: Ankeny, Tuesday, December 2nd at 7 p.m., at Lakeside Center in Hawkeye Park; in Madrid Thursday, December 4th at 7 p.m., at the Madrid Public Library, and in Sheldahl/Slater on Monday, December 8th, at Heritage Hall in Slater. 

Armed robber strikes near Grinnell College campus

An armed robber struck the Grinnell Dairy Queen last night. Grinnell Police Chief Jody Matherly says it was a lone gunman. "A male subject, wearing a multi-colored jacket with a hood, black gloves, approximately 20 to 30 years of age and brandishing a dark handgun entered the Diary Queen and did demand money from the store employees," he says.

The suspect was described as being about five foot eight and of medium build. Matherly says he made a clean get-a-way, but police have some leads. "The robber exited the Dairy Queen with an undisclosed amount of money and ran southbound through the alley. There were several other police agencies including the Iowa State Patrol and the Poweshiek County Sheriff’s Office that assisted in searching the area for the individual," Matherly says. "We have received some leads. We’re following up on those leads as we speak and the investigation is continuing."

No one was hurt in the robbery, which happened at about 9:20 last night (Monday). Grinnell’s Dairy Queen is located on Highway 146, about nine blocks away from the Grinnell College campus.

 

DCI says Boone man shot by police had air pistol

Example of air pistol the DCI says Seth Miller carried. Authorities say a Boone man, who was shot by police officers Sunday night, was carrying an air pistol.

Twenty-seven-year-old Seth Miller died on Monday. Three police officers were involved in the shooting which occurred outside a bar in Boone called the Eastside Hideaway Lounge.

D.C.I. agent Michael Motsinger says all three officers fired their weapons at Miller when he refused to drop what appeared to be a handgun. "The officers encountered (Miller) in the alleyway and requested he drop his handgun on several occasions," Motsinger told Radio Iowa. "The suspect did not do that and the officers had to respond with force."

The officers said Miller raised his weapon in their direction before they fired. A total of four rounds were fired, with at least one hitting Miller. Motsinger says the air pistol looks very much like real gun.

"It is a black, handgun style Powerline Model 15XT air pistol and there are no markings that identify it as an air pistol, so the officers have to assume that it’s an actual handgun," Motsinger said.

The incident occurred shortly after 10:45 p.m., which also limited the officers’ ability to see what Miller was holding. Motsinger says there are no streetlights in the alleyway and the officers only had flashlights to aid with visibility.

Boone Police Captain John Sloter, Officer Dave Powers and Boone County Sheriff’s Deputy Cole Hoffman have all been placed on paid administrative leave. A relative of Miller’s says he had recently been diagnosed with borderline schizophrenia and sometimes failed to take his medication. Miller was the father of two children. 

Potential buyer for bankrupt VeraSun

A buyer has approached bankrupt VeraSun Energy about taking over the company’s ethanol plants, though details of the potential deal aren’t being released. VeraSun is Iowa’s largest ethanol producer with plants in Albert City, Charles City, Dyersville, Fort Dodge and Hartley. All five are operating today.

Timothy Fox, executive director of Charles City Area Development Corporation, says the number of employees has been scaled back, though, from last year’s levels. "There’s still steam coming out of the stack. They’re still producing. As far as I can tell, they have a minimal supply of corn," Fox says of the Charles City plant. "They’re not storing any corn. They’re buying corn and producing it as they get it."

In 2003, Fox and others in Floyd County started talking with VeraSun about building a plant in the area and in 2006 VeraSun bought land the county owned that’s near the Avenue of the Saints Super Highway. "They constructed (the ethanol plant near Charles City) in 2006. At that juncture, of course, we were very pleased," Fox says. "They were a good employer. They paid all their vendors and things were going well."

VeraSun buys corn from farmers in a roughly 30-mile radius of each plant, including the plant in Floyd County that Fox of the Charles City Area Development Corporation is watching. "Our task is to see that the plant stays open, the people stay employed, that all the agreements that VeraSun committed to are complied with by the new buyer and that we have an outlet for our producers to deliver corn," Fox says.

VeraSun found itself caught in a financial vice when corn prices spiked after this spring’s floods and the company recorded losses in the last quarter that were nearly half a billion dollars. "I think it’s always been kind of our assumption that the larger a company grows, the bigger mistakes it can make, but when you have one input and you make a very dramatic mistake hedging and buying corn, that’s disastrous," Fox says. "What we’re attempting to do here is to restore confidence from the producers that they’re going to have a reliable outlet for corn, that contracts are going to be honored and that they’re going to get paid."

VeraSun was founded in 2001. In June of 2006, it went public when corn was cheap and refiners were clamoring for more ethanol. When corn prices soared this summer, VeraSun and other ethanol producers tried to control costs by signing hedge contracts for corn purchases. But by October 31st of this year, the company had filed for bankruptcy.

John Kramer is president of the Development Corporation of Fort Dodge and Webster County, where VeraSun operates a plant. "Obviously, the hedging and the price of corn — what they were paying — is what got them into the situation that they’re in," Kramer says. "But we have seen in the past a very progressive VeraSun looking at developing alternate sources of profit other than just producing ethanol, using some of their byproducts."

Kramer sees that kind of diversification as key for the ethanol industry. "Extracting the corn oil, extracting the glycerins, taking out the fibers and other things to give the companies like VeraSun…multiple profit centers, not just ethanol," Kramer says.

VeraSun’s corporate headquarters is in South Dakota and the company operates 16 biorefineries, including the five ethanol plants in Iowa.

Suspected murder weapon found in Marshall County

A suspected murder weapon has been found along a central Iowa roadway. On Sunday morning, the Marshall County Sheriff’s Department re-searched the area on Highway 14, north of Marshalltown and discovered a weapon they believed to have been used in the shooting deaths of Jessica Deemer and Bryce Mercer on October 17th.

They had requested assistance in locating the weapon since the shooting incident. Marshall County Sheriff Ted Kamatchus says the re-mowing of the shoulder along the highway helped in finding the weapon. The weapon has been sent to the Iowa DCI crime lab for evaluation.

No information as to the type of weapon has been released. Twenty-seven-year-old Kyle Deemer has been held in the Marshall County Jail since his arrest. He is charged with two counts of murder. He faces a December court appearance in District Court.