1169852--3/20/2009--UNITED_WISCONSIN_GRAIN_PRODUCERS

related topics

{gas, price, oil}

{cost, regulation, environmental}

{condition, economic, financial}

{loss, insurance, financial}

{competitive, industry, competition}

{property, intellectual, protect}

{personnel, key, retain}

{control, financial, internal}

{capital, credit, financial}

{regulation, change, law}

Risks Relating to Our Business Increases in the price of corn or natural gas would reduce our profitability. Risks Relating to Our Business We engage in hedging transactions which involve risks that could harm our business Declines in the price of ethanol or distillers grain would significantly reduce our revenues. Additional credit facilities may become difficult to obtain. We sell all of the ethanol we produce to Noble Americas Corp. under our ethanol marketing agreement, and any interruption in or termination of this relationship may adversely affect our business and operations. We sell a substantial portion of the distillers grains we produce to CHS Inc. under our distillers grains marketing agreement, and any interruption in or termination of this relationship may adversely affect our business and operations. We have a limited operating history. 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. Our business is not diversified. We depend on our management and key employees, and the loss of these relationships could negatively impact our ability to operate profitably. 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 A reduction in the consumption of gasoline may decrease the demand for ethanol as a blending agent which may negatively affect our profitability. Technology advances in the commercialization of cellulosic ethanol may decrease demand for corn based ethanol which may negatively affect our profitability. New plants under construction or decreases in the demand for ethanol may result in excess production capacity in our industry . Decreasing gasoline prices may negatively impact the selling price of ethanol which could reduce our ability to operate profitably. Growth in the ethanol industry is dependent on growth in the fuel blending infrastructure to accommodate ethanol, which may be slow and could result in decreased demand for ethanol. 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 ethanol. 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 than it contributes may affect the demand for ethanol. Negative media attention associated with the use of corn in the ethanol production process may lead to decreases in demand for the ethanol we produce which could negatively affect our profitability. Risks Related to Regulation and Governmental Action Government incentives for ethanol production, including federal tax incentives, may be eliminated in the future, which could hinder our ability to operate at a profit. 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, which would require us to obtain additional permits and install additional environmental mitigation equipment, which could adversely affect our financial performance .

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1169852--3/20/2009--UNITED_WISCONSIN_GRAIN_PRODUCERS_LLC