Exhibit 20
                     LETTER TO OUR STOCKHOLDERS

November 10, 1994

Dear Stockholder:

Our results for the first quarter of fiscal 1995 represent a
noticeable improvement over the same period the prior year, which
was severely weakened by the effects of record rain and floods. 
Net income for this year's first quarter, which ended September 30,
was $2,756,000, or $0.28 per share on sales of $45,984,000.  Net
income for the first quarter of fiscal 1994 was $1,093,000, or
$0.11 per share on sales of $39,162,000.

Unit sales of all of our principal products were up compared to
first quarter volumes a year ago.  The improved earnings were
realized despite decreased efficiencies associated with the start-
up of new equipment at our Pekin, Illinois plant, increased foreign
competition and higher per bushel costs for grain.  

The decreased efficiencies, which we continue to experience in the
current quarter, are a short-term consequence of expansion projects
that will strengthen our long-term growth capabilities.  These
projects involve doubling our total alcohol production capacity by
January, 1995, and increasing our total wheat gluten capacity by
40% and our total wheat starch capacity by 70% by the spring of
1995.

While our gluten production was up compared to a year ago,
marketing opportunities were tightened by the presence of increased
imports from Europe.  To retain market share and prove to our
customers that we are their reliable supplier, we remained
competitive despite being squeezed by higher wheat costs. 
Meanwhile, wheat starch production also increased due principally
to a steady rise in unit sales of our modified varieties.

Unit sales of alcohol products climbed above last year's first
quarter level, principally as the result of increased demand for
food grade alcohol in beverage applications.  Fuel grade alcohol
unit sales rose slightly above the same period a year ago.

The Environmental Protection Agency and members of the petroleum
industry are currently engaged in litigation over the legality of
a recently adopted EPA addition to its Reformulated Gasoline Rules
(RFG).  The addition would require refiners to use certain amounts
of renewable oxygenates such as grain-based ethanol in reformulated
gasoline in the nine smoggiest metropolitan areas in the country. 
The court has temporarily stayed implementation of the additional
rule to permit the issues to be briefed and orally argued by the 
parties.  Although the court set an expedited schedule requiring
that final briefs be submitted by January 12, 1995, it is uncertain
as to when or if the stay will be lifted.


Whether or not the additional rule is upheld by the courts, we
believe that the overall effect of the RFG rules will be to
increase demand for ethanol and that we will continue to have
opportunities to market the increased fuel alcohol production from
our distillery expansion in Pekin.  

Additionally, as I have emphasized on numerous occasions, a very
significant reason for the distillery expansion is that it allows
us to grow in our other principal product areas.  Because our
processes are integrated, gluten and starch capacities could not be
increased without also increasing our alcohol capacity.

When the current expansion projects are completed at Pekin and the
new capacities are increasingly utilized,  we expect our
efficiencies will steadily improve and allow us to become an even
stronger producer long-term.

As previously announced, a dividend of $0.125 per share was
declared and is payable November 10, 1994 to stockholders of record
October 27, 1994.

Sincerely,


/s/ Ladd M. Seaberg
Ladd M. Seaberg
President and CEO