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Ethanol benefiting farmers
Published 12:00pm Thursday, April 3, 2008The ethanol plant owned by Otter Tail Ag Enterprises will use about 19.5 million bushels of corn a year, good news to farm growers in Otter Tail County. An economic impact of close to $110 million annually is expected, according to the Renewable Fuels Association.
Located northwest of Fergus Falls, the ethanol plant is permitted to produce up to 65 million gallons of ethanol a year. In the start-up stages, however, production is expected to be 55 million gallons a year, according to Otter Tail Ag CEO Kelly Longtin.
“For many county farmers, all of their corn this year will end up at our ethanol plant,” Longtin said. “Some haul the corn directly to the ethanol plant itself while others haul corn to Harvest States along Highway 210 west of Fergus Falls.”
On April 1 the corn price quoted by Otter Tail Ag Enterprises (ethanol plant) was $5.59 per bushel and the Harvest States quote was $5.50 per bushel. Harvest States is the procurement agent for Otter Tail Ag Enterprises.
“Minnesota didn’t get its reputation as a leader in the ethanol industry by accident. It took years of hard work by highly motivated people who believe in the renewable fuel and its benefits,” said Kris Bevill, an Ethanol Producer Magazine writer.
Wendy Fernstrum, who authored a book about Minnesota ethanol, is convinced that Minnesota’s ethanol industry is here to stay.
“Farmers cannot make a living just by growing commodities,” she said. “They need value-added opportunities and ethanol plants are a great way to do that. The fact that these farmer-owned plants are bringing in almost $5 billion to the state’s economy is important. What other grassroots industry contributes that kind of money to a state?”
Tim Enderson, who raises Black Angus cattle on his farm southeast of Fergus Falls, is among those who appreciate the opportunity to supplement their cattle feed with an ethanol corn byproduct. Enderson and others plan to obtain the byproduct from the Fergus Falls ethanol plant.
Despite a projected slight decrease from last year, Minnesota corn acreage is expected to remain at historically high levels. The corn price outlook remains strong due in part to the continued expansion in ethanol production such as at the plant northwest of Fergus Falls.
Corn farmers in the 10 major corn producing States (Minnesota, Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin) intend to plant 66.6 million acres in 2008.
Along with the production guarantee of 55 million gallons of ethanol per year, Otter Tail Ag Enterprises also will market dried distillers grain and wet distillers grain.
