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You are here: Home / Agriculture / Is there an ethanol glut?

Is there an ethanol glut?

June 15, 2007 By WRN Contributor

Some analysts are predicting the booming ethanol industry is about to stumble. What does that mean for Wisconsin?

Wall Street analysts are predicting a major surplus in ethanol supplies that will cut into profits for producers and corn growers. But that may not affect Wisconsin farmers.

Bob Olson with the Wisconsin Corn Growers Association says he doesn't see a glut in supply. With demand for ethanol still at two dollars a barrel, it's still profitable.

Olson says corn farmers are currently getting four-dollars a bushel for their corn. Besides there are profits to be made from the byproduct of ethanol production. A third of a bushel of corn that goes into the plant comes out the backend as high quality grain for animals.

The state Office of Energy Independence estimates Wisconsin produced two hundred and fifty million gallons of ethanol last year and it may be closer to three hundred and ninety million next year.

AUDIO: Jim Dick reports ( 1:11 MP3 )

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Filed Under: Agriculture



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