Quad County Corn Processors — the shuttered ethanol plant south of Galva — is officially headed to a sheriff sale tomorrow (Friday, Sept. 4) at the Ida County Courthouse.
The sale is set for 10 a.m., where Lincoln Savings Bank of Reinbeck, the holder of a $19 million judgment, is expected to enter a credit bid. The plant will not have the opportunity to repurchase the property, and the bank is positioned to take ownership if no higher bid is made.
Court records show the bank sued Quad County in both Cherokee and Ida counties, alleging the plant defaulted on a series of USDA‑backed loans issued five years ago. Those loans were tied to the plant’s real estate, its administration building in Galva and a two‑acre loading site in Cherokee. The plant never responded to the lawsuits, and the bank’s attorneys noted at least 10 other entities may have claims to the property — including contractors with mechanic’s liens, the Iowa Department of Natural Resources and Cherokee Industrial Corporation, which helped develop the plant’s rail spur.
Quad County halted production in late 2024 after a molecular sieve failed. The Farm Bureau Spokesman reported the board was seeking capital for major improvements, and CEO Delayne Johnson said the company was exploring a sale of 51% to 100% of its ownership. A sale never materialized.
Financial pressure continued to mount. A default notice issued last January alleged the plant failed to make $500,000 in scheduled payments due in December 2024. Additional liens followed, including a $34,000 claim from Bruce Lundin Construction of Minnesota. A judge has left open the possibility that lienholders could receive proceeds from Friday’s sale after the bank is paid.
The plant also faced regulatory trouble. Iowa Attorney General Brenna Bird sued Quad County last year on behalf of the DNR, seeking more than $6 million in Clean Air Act fines for violations spanning over five years. The case settled last October for less than 2% of that amount. Bird later said the settlement was a “just result,” citing the economic strain on the plant and its employees.
Quad County Corn Processors opened in 2002 after six northwest Iowa investors formed the corporation and secured 102 acres south of Galva along U.S. Highway 20. More than 420 farmers invested within the first six weeks. The plant was appraised at $56 million in 2020.
