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Drought Impacts Ethanol Producers

Short corn supply, weak biofuel demand stresses ethanol facilities throughout the Midwest

Fuel gas pump ethanol VIA PIXABAY Feb 2021

The 2021 drought has stressed ethanol producers across the Midwest, and it's worse in western North Dakota, where ethanol plants are still unable to judge the size of the corn crop.

According to a report at AgWeek, most local corn suppliers for Red Trail Energy LLC of Richardton, ND, and Midwest AgEnergy LLC of Underwood, ND, received less than 8 inches of seasonal rain, and 20 days of 100-degree temperatures.

With the weather pushing corn production down, the companies are paying more for corn supplies and reaching out to corn by rail.

Longer-term, both companies are working on adding to the environmental value of their ethanol by injecting carbon dioxide deep into the earth for long-term storage.

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