U.S. might pay ethanol plants for corn losses

Des Moines Register
By DAN PILLER • dpiller@dmreg.com • October 18, 2008

The U.S. Department of Agriculture may use its rural development money to assist ethanol plants that have suffered losses in the volatile corn futures markets, Agriculture Secretary Ed Schafer said Friday in Des Moines.

"Some plants are under pressure because they've been speculating on corn," Schafer told reporters after speaking at the World Food Prize symposium breakfast.

The secretary said the department wouldn't buy or sell grain or cover trading losses. Rather, he said, money could come from the USDA's Rural Development office, which can provide up to $25 million to keep rural businesses operating.

USDA Rural Development money has been used in the past to promote ethanol and biodiesel plants.

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