In addition to being drawn into the “food versus fuel” debate, corn ethanol producers are now also facing economic challenges. After the recent filing for bankruptcy of one of the largest corn ethanol production companies in the United States, more corn ethanol producers are seen to follow suit. In early November this year, VeraSun Energy Corporation (a company running 14 ethanol plants with a combined capacity of 1.4 billion gallons per year) filed for bankruptcy, citing huge losses in the third quarter of 2008, and a $1.5-billion debt. Losses were attributed to “spikes” in operating costs and low profit margins. (Recently, the price of ethanol also dropped from $2.90 per gallon last summer, to $1.70 per gallon in November). According to Mark Lakers, principal at Ag & Food Associates LLC of Omaha, the current list of bankrupt ethanol plants is 16, and the number will be seen to rise to about 40 by early 2009. He said the many of the ethanol producers cannot hedge their corn purchase prices anymore, and will not be able to meet financial commitments with their lenders. “There is a consolidation coming for ethanol”, he added..