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Article: AgStar buys six VeraSun plants; hopes to re-sell to farmer co-ops.(Newsline: Co-op developments, coast to coast)
- Article from:
- Rural Cooperatives
- Article date:
- May 1, 2009
CopyrightCOPYRIGHT 2009 U.S. Department of Agriculture, Rural Business - Cooperative Service. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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AgStar, a Farm Credit System bank based in Mankato, Minn., in March purchased six ethanol plants formerly belonging to bankrupt VeraSun. The bank's credit bid was for $324 million. The six plants were to remain in idle mode for about 60 days while buyers are found.
According to press reports, a number of farm groups were interested in acquiring some of the plants, but did not have the financial clout to win them during the auction conducted by the bankruptcy court. But the bank, itself a cooperative, hopes to give them a chance to do so.
"Part of this is to give farmers and farmer cooperatives the opportunity to buy these plants," Paul DeBriyn, president ...