1169852--3/18/2008--UNITED_WISCONSIN_GRAIN_PRODUCERS

related topics

{gas, price, oil}

{property, intellectual, protect}

{cost, regulation, environmental}

{loss, insurance, financial}

{competitive, industry, competition}

Risks Relating to Our Business Our business is not diversified. Increases in the price of corn would reduce our profitability. Risks Relating to Our Business - We engage in hedging transactions which involve risks that could harm our business Increases in the price of natural gas would reduce our profitability. Risks Relating to Our Business - We engage in hedging transactions which involve risks that could harm our business Our revenues are greatly affected by the price at which we can sell our ethanol or distillers grains. We sell all of the ethanol we produce to Noble Americas Corp. under our ethanol marketing agreement. We sell a substantial portion of the distillers grains we produce to CHS Inc. under our distillers grains marketing agreement. We engage in hedging transactions which involve risks that could harm our business. Operational difficulties at our ethanol plant could negatively impact our sales volumes and could cause us to incur substantial losses. Changes and advances in ethanol production technology could require us to incur costs to update our plant or could otherwise hinder our ability to compete in the ethanol industry or operate profitably. Risks Related to Ethanol Industry Overcapacity within the ethanol industry could cause an oversupply of ethanol and a decline in ethanol prices. We operate in an intensely competitive industry and compete with larger, better financed entities which could impact our ability to operate profitably. Competition from the advancement of alternative fuels may lessen the demand for Corn-based ethanol may compete with cellulose-based ethanol in the future, which could make it more difficult for us to produce ethanol on a cost-effective basis Certain countries can export ethanol to the United States duty-free, which may undermine the ethanol production industry in the United States Consumer resistance to the use of ethanol based on the belief that ethanol is expensive, adds to air pollution, harms engines and/or takes more energy to produce that it contributes may affect the demand for ethanol. The expansion of domestic ethanol production in combination with state bans on MTBE and/or state renewable fuels standards may place strains on related infrastructure such that our ethanol cannot be marketed and shipped to blending terminals that would otherwise provide us the best cost advantages. Risks Related to Regulation and Governmental Action A change in government policies favorable to ethanol may cause demand for ethanol to decline. Loss of or ineligibility for favorable tax benefits for ethanol production could hinder our ability to operate at a profit and reduce the value of your investment in us. Changes in environmental regulations or violations of the regulations could be expensive and reduce our profitability. Carbon dioxide may be regulated in the future by the EPA as an air pollutant requiring us to obtain additional permits and install additional environmental mitigation equipment, which could adversely affect our financial performance

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1169852--3/18/2008--UNITED_WISCONSIN_GRAIN_PRODUCERS_LLC