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January 28, 2010     The Superior Express
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Page 6 -- A Special Supplement of The Superior Express and Nuckolls County Locomotive-Gazette, Thursday, January 28, 2010 Ethanol production and use continues to grow, expand The U.S. corn-based ethanol indus- try continued to grow over the last year - with monthly production totals from across the country in 2009 surpassing every month in 2008. The target set forth in the federal Renewable Fuel Standard is 10.5 bil- lion gallons of ethanol production, an increase of 1.5 billion from 2008's production of 9.0 billion. "'While the corn ethanol industry may have struggled a bit early in the year, production remained stron,,~, and on target to nicer growing demand for tl!e renewable biofuel," said Jon Holzfaster, a cattle and corn farmer fronl P:txton who is a member of the Nebraska Corn Board. "Reports talking about the struggle of some ethanol producers that shut down plants may have been a bit strong, and the number of negative reports certainly made it appear as though the industry as a whole was in trouble." he said. "Yet that couldn't be further from tile truth, which is demonstrated by the record high production numbers seen fr(m~ month Io month." Holzfastcr noted most of the p'lants that did shut down got back up and running within a short amonnt of time and as demand grows other plants will come back online, too. "There" is pro- duction capacity online to meet cur- rent demand, but as that grows to 12 billion gallons next year, it makes sense that additional plants will come back and get into the market," he said. Industry numbers show in Januar'y 2005 there were 8 l,ethano! pl~,nts in 18 states. By/anuary 2009 there were 170 plants operating in 26 states that had a capacity of 10.6 billion gallons- but additional plants with a capacity Ik)r nearly 2 billion gallons were sitting idle. Some of those plants came back online in 2009. Nebraska is the second-largest etha- nol producing state in the country, with 23 operating ethanol plants with a ca- pacity of nearly 2.0 billion gallons of ethanol. The plants employ 1,000 people directly and generate $2.9 bil- lion in total economic output and $51 million in tax revenues each year. "At tile same time those ethanol plants are producing a clean-burning, renewable fuel. they prodnce a high- quality feed for tile state's livestock industry," said Alan Tiemann, a farmer from Seward and chairman of the Ne- braska Corn Board. In fact, ff)r every bushel of corn an ethanol plant receives, it produces about 2.8 gallons of ethanol and almost 18 pounds of distillers grains. "Those 23 ethanol plants are really producing both fuel and feed," Tiemann said. "'That adds value Io commodity corn twice - once as a fuel and again as a feed." Tile Nebraska Corn Board c:~imated about 3.6 million metric tons of distill- ers grains would be produced in Ne- braska in 2009, while ethanol phmts across the country would produce 24.5 million nlelric tons. Tile ethanol indus- try estimates distillers grains produced by ethanol plants replaced more than 1 billion bushels of corn in feed ratior s last year. "Tile ethanol industry is very post- live for Nebraska and the country as a whole." Tiemann said. "'It helps diver- sif) our fuel supply, grow oureconomy and reduce our dependence on li)reign oil. It's tile nlost successful renewable fuel in history and it's still growing and getting better." Record-large U.S. corn, soy crops weighing on prices By Mary Lou Peter. K-State Univer- sity Extension. Colby. Kan. Prospects li)r higher U.S. corn or old crop soybean markets faded some- what when the U.S. Department of Agriculture reported Jan. 12 that U.S. famlers produced record-large corn and soybean crops in 2009. according to a Kansas State University agricultural economist. tn anal) zing the current state of the grain market, there is no escape_ from the fact that world wheal, coarse