Otter Tail Ag Enterprises reported a net loss of $15 million during its second quarter of the corporations fiscal year. This loss was most likely caused by high corn prices and lower-than-expected gas prices. According to the corporations second quarter financial report, the Fergus Falls plant will need an additional $10 million to continue operating through the rest of the fiscal year.
Just weeks ago, Otter Tail Ag Enterprises defaulted on its loan with AgStar Financial Services, its tax credit loans with Midwest Minnesota Community Development Corporation, and its capital lease with Otter Tail County. According to the Fergus Falls Daily Journal, the company is working with AgStar Financial Services to create terms of repayment, however its unlikely it will be able to remake payments as a result of the company’s current financial condition, as well as the ethanol market in general.
