Minnesota ethanol producers are being hit hard by the end of major federal subsidies, reports MPR today.
And it’s not just here; across the country “ethanol profit margins have declined sharply, even slipping into negative territory,” said the story.
And it notes: “Experts see no quick turnaround in sight.”
Minnesota is the nation’s fourth top ethanol producer.
Randall Doyal, CEO of the Al-Corn Clean Fuel ethanol plant in southeast Minnesota, said the there’s no profit margin now.
“Since the first of the year it’s been even-to-slightly negative,” Doyal said.
The 45-cent per gallon subsidy ended Dec. 31, and the situation was complicated further by a rush from the gasoline companies to buy ethanol before the end of the subsidy. That led to overproduction which now has created an oversupply and depressed prices.