Why have more ethanol plants been built in Iowa recently than Illinois, corn grower Ron Lukow of Chebanse asked Illinois Corn Growers Association exec Ron Weinzieryl.

After having an early and long lead in ethanol production, Illinois has been eclipsed of late by Iowa.

That's likely to turn around now, however, Weizieryl told the Kankakee County Corn Growers at their annual field day Thursday.

The state's "diversified market" for corn and consequent higher prices cost Illinois its ethanol preeminence, he said. "Illinois' price for corn is 40 cents higher than what it is in South Dakota and 45 cents higher than what it is in Nebraska."

So lately, ethanol plants have been built where corn could be bought cheaper. However, now they've built to crop capacity "out west" and "if they want corn, they're going to have to come eEast of the Mississippi -- and that's what's happening," he said.

"Illinois has one comparative advantage that no other state in the nation has. It has five, Class I railroads" linking with both coasts and the south, he said.

"... Illinois can get ethanol to the East Coast better than any other state, especially those west of the Mississippi," he said. "That means that in Illinois the ethanol plants can pay 50 cents more per bushel than they can in Iowa and still make more money... because the value of ethanol is higher, because the freight's cheaper to get it to the East Coast."

~ Mike Lyons