North Dakota Ethanol Producers are at Risk as Fund Dries Up
Editor’s Note: Sasha is one of the newest additions to the Gas 2.0 writing team. Welcome Sasha!
North Dakota’s fund for helping ethanol producers hedge against fluctuating corn prices is about to run out, and the producers are getting worried.
The fund, paid for in part by farm vehicle registrations, was drained by high corn prices earlier this year, according to the Bismark Tribune. Ethanol facilities operate on very slim margins, amplifying the effect of market turbulence. The goal of the fund, run by the North Dakota Commerce Department, was to create a safety net — $1.6 million per year to be exact — for existing ethanol production facilities and to draw new facilities in as well. Now the fund only has $2.4 million left.
