Combines Ethanol Plant Corn PricesIJ

[Dr__Pepper]

The only reason ethanol plants are being built is because of the low price of corn. Many farm organizations will tell you if you want to benefit financially from an ethanol plant you need to be an investor in the plant not a producer of the raw product(corn). The most expensive operating item of an ethanol plant is the purchasing of raw product(corn). Therefore as the price of corn increases there is less of an incentive to produce ethanol. I believe if cash corn were to average $2.50 there would be alot of ethanol plants go idle. It appears that Uncle Sam will continue with a farm program that will ensure over production, so I suggest you invest in the plant.

 

[Joe]

The ethonol plant in our area conctracs for corn about 9 months prior to harvest at 30 to 35 cents over market at the elevator. Problem is the plant is 100 miles or so away. So if you spend say $.20 for trucking your ahead 10 to 15. Second problem is you have to store the crop after harvest for 9 to 10 months to get the best contract. You can get a contract for delivery a month or two after harvest, but the price is not near as good. By doing this they are setting up a steady stream of corn into thier plant all year without having to store on site. If you can get the corn dried to storing moiture without high propane costs, and get it to the plant without high fuel costs for the truck it works out, but if the price of fuels goes way up again IJIJIJIJIJ

 

[thud]

Whether or not an ethonal plant raises the local price for corn( thru basis levels) is debatable,since one never knows what the price would be if the ethanol plant wasnt there.We have a major plant( the biggest in Canada AFAK) about 50 miles from us.Some argue having the plant has raised the basis levels $.10-.15_Bu but there is no real proof to support nor dispute this claim. As a side note i hope for your sake that you live UP-WIND of the ethanol plant, as one of the major drawbacks of the one in our area( claimed to be one of the most advanced plants in NA)is the odor.While any emmissions from the plant are considered safe( mostly steam and noise emmissions)they do tend to emit a strong 'burnt corn" odor from the mash drier.Its an issue they have rectified to some extent with our local plant but they havent cured the problem 100%. Hope that helps.

 

[TlC_FARMS]

THEY ARE INTENDING PUTTING AN E-PlANT IN NW INDIANA. SUPPOSED TO BE STATE OF THE ART CONSTRUCTION. ANY QUESTIONS WE OUGHT TO ASKIJ

 

[Unit_2]

4WDman, I saw the other day where they are building a 3 in 1 loop ethanol plant just NE of Pierre S.D. with a 65,000 head feed lot right beside it. It's called 3 in 1 because the munure from the feed lot will be turned into methane gas to power the plant. The corn mash, the biproduct of the corn that is used to make ethanol, will be fed to the cattle. That realy sounds like a good idea, but there they are telling the farmers in the area that the real money will be made by investing in the plant. K.A.

 

[4WDman]

Thanks for the responce guys!! I was wondering about odor. I wasn't sure if there would be much or not. I live 3-5 miles East of the building site. A larger farmer in are area I think has a lot to do with this. Every one was against the "factory Farms" going in. He sold them the land. He is behind the E-Plant also. He is the one the Paper interviewed about the whole thing. It is his land were the E-Plant is going to be built!! So he shouldn't care what happens. He has already made his $. From the way it sounds, investing is the only $ in it. I guess I will have to wait and see. One more thing, how many people does a plant put to workIJ Unemployment is bad around here!! Thanks Again!! 4WDman, N.W. OHIO

 

[husker_gleaner]

Just browsing on the deere sight to check out questions on 653a row crop heads and seen this heading. I live within 15 minutes of three ethanol plants here in Nebraska. First off a significant rise in price didnt occur as was printed in every paper around guess it sounded good to the public. Second there is some odor when you are near the plant but not all that bed but I dont live next to the plant either I know of people who by byproducts to feed livestock and they seem to have good luck. The plants do pay alittle better than local elevaters but transportation cost minimize the extra price. The last time corn prices exceeded the 2.50 level they all shut down so I guess low corn prices or milo as these plants prefer to corn keeps unemployment down in the area if the farmers can afford to produce it.

 

[Auditor]

I work at the Minnesota Corn Processors Plant in Marshall Minnesota (Also has a plant in Columbus, NE) They have a website if you want to check out some information. You can't really go by the posted corn bids because they are relative to this area. It should be informative. This company has really grown over the years. They also produce corn syrup, 42 and 55 fructose and along with other byproducts.

 

[Old_Farmer]

We have an ethanol plant here in the city of Chatham Ontario, the plant has not done anything for our corn prices. The plant was built on the edge of the city (on the west side) and the prevailing winds blow the smell into the city, many were complaining. It could be very strong at times. It has a sour aroma to it.. Newer scrubbers were added it is not as bad as before. I was told by one of the people attending a meeting about the aroma from the stack (prior to the new scrubbers) and if it were a health concern. This person told me they were told there were few to worry about but a few of the components could cause health problems.

 

[Thud]

Old Farmer... where abouts ya from in the Chatham areaIJ We are based near Kingsville but I get up into the Chatham area alot in june_july for the pea harvest. As i said in my earlier post, its debatable whether the ethanol plant has added anything to the local prices since there is nothing to compare it tone thing it has done is opened up the flood gates for low grade Michigan corn imports.