Despite headwinds, ethanol fuels hopes of economic stability in the Corn Belt

Medill Reports
by Bridget Macdonald May 14, 2009

In June 2008, corn prices soared to $7.50 a bushel on high demand after spring flooding in the Midwest forced farmers to replant. When prices dropped in July, ethanol producers who had locked in at high prices began to flounder. Since the onset of the recession in September, declining fuel consumption has compounded their problems.Yet while producers across the industry are reeling in the recession, some are cautiously moving forward, banking on federal support and recovering oil prices to return profitability to the ethanol market.

In 2006, the Illinois Environmental Protection Agency received 32 applications for permits to construct new ethanol facilities in the state; only four of the projects have broken ground.

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