[Mr. Lucky]

Well run plants do OK, anyway. The problem with subsidies, in any industry, is that they encourage businesses which are not efficient or otherwise well run to compete with businesses which are.

Corn is presently about $5.60 per bushel. An efficient plant will obtain 3 gallons of ethanol together with 18 pounds of DDG's (plus corn oil and CO2) from each bushel. The fuel and feed value, alone, of the bushel is worth over $10. If an operator can't process a bushel corn for five bucks, it really shouldn't be in business.

[jjotto]

You are correct. I know an ethanol plant that opened paying $1.50/bushel for corn. The manager is a 35-year old truck driver with no experience who can’t fluently read a newspaper.

Ownership is now counting on a new influx of money from a second plant and a biodiesel facility to cover going so far in the hole on the first plant.