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North Central Kansas | The ethanol plants that survived the last runup in corn prices learned alot of valuable lessons. I assume that they have done a much better job in covering their needs with forward contracts. What got alot of the plants in trouble the last time was that they got to speculating on the market beyond their needs. They thought they could make money doing it and the market went against them. Hard lesson to learn but I am sure they remember it. I would bet that they have more controls in place to prevent that from happening.
As far as the ethanol subsidy it is kind of like when they mandated conservation work had to be done to be in the program. They offered cost share on it to make it less painful. They are mandating ethanol so here is your subsidy. | |
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15% blend coming soon to a gas station near you!
