Ethanol Industry May Carry Corn Farmers This Year

The late, wet harvest has any elevators are reporting high moisture content and low test weights on corn, but there may be a silver lining in that for producers who supply corn to ethanol plants.

Arlan Suderman with Farm Futures reported this week that the ethanol industry can use that low test weight corn. Suderman spoke with Dave Vander Griend, President and CEO of ethanol developer ICM, Inc. of Kansas.

“We can utilize the crop,” says Vander Griend. “A lot of people don’t want it, which means that it will be discounted. Many people in the industry haven’t been through this before, but I’ve been around long enough to have lived through it before and know that it can work. Ethanol plants can usually beat the price of the other discounts being offered and make use of it.”

Suderman notes that Vander Griend emphasized the importance of farmers talking to their local ethanol processor now about how to best care for and deliver lower quality corn.