No December profits for Iowa ethanol - KWWL - Eastern Iowa Breaking News, Weather, Closings

No December profits for Iowa ethanol

DES MOINES (KWWL) -- The tumbling price of corn in the last six months of 2008 drastically hurt Iowan's trying to make a profit on ethanol.

That trend turned worse in December. Iowa State University Extension economist Don Hofstrand says the average ethanol plant made zero profit that month.

Hofstrand isn't optimistic about 2009. He says higher corn production costs will increase the cost of production.

The news isn't much better for corn producers.

The National Corn Growers Association was looking to use the economic stimulus package to pay for rebuilding locks and dams on the upper Mississippi River to speed movement of grain barges.

But the project is not far enough along to qualify for stimulus money, and getting money will be more difficult after the stimulus package is off the table.

Online Producer:  JJ Murray

Powered by Frankly