ISU economist doubts '09 ethanol profits will show significant rise

Des Moines Register
by PHILIP BRASHER • & DAN PILLER • February 1, 2009

Ethanol's profitability in 2008 hit a low for at least the last four years, according to Iowa State University Extension economist Don Hofstrand.

In his monthly tally of ethanol profitability, Hofstrand reports the average ethanol plant made zero profit in December after taking a profit of 9 cents per gallon in November.

For all of 2008, ethanol plants averaged a profit of 17 cents per gallon, down from 37 cents in 2007 in what will go down as the industry's banner year of 2006. Hofstrand calculated profitability by factoring in costs of corn, distillers' grain, natural gas and typical fixed and variable costs to operate an ethanol plant.

Read the full story