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Dependency on the Ethanol Industry

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Author Info

  • Yonas G. Hamda
  • Jing Li

    ()
    (South Dakota State University)

Abstract

The year 2008 will long be remembered as a year when corn based ethanol has seen tremendous change. The Energy Independence and Security Act, which passed in late 2007, gave a huge boost to the industry as it mandated an increase in biofuel production and use. In 2008, the industry witnessed record high prices on corn and crude oil. Ultimately, a big ethanol and distiller’s grain company--Vera Sun Energy-- filed for Chapter 11 bankruptcy leaving farmers with contracts wondering what will happen next. South Dakota is a major corn growing and ethanol producing state and this article assesses the relative magnitude of corn based ethanol on the local economy in terms of distribution of ethanol plants and corn disappearance ratios.

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File URL: http://repec-sda.sdstate.edu/repec/sda/pdf/Commentator/No503.pdf
File Function: Fiinal version, 2008
Download Restriction: no

Bibliographic Info

Paper provided by South Dakota State University, Department of Economics in its series Issue Briefs with number 2008503.

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Length: 4 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:sda:ibrief:2008503

Contact details of provider:
Postal: Box 504, Scobey Hall, Brookings, SD 57007-0895
Phone: 605-688-4141
Fax: 605-688-6386
Web page: http://www.sdstate.edu/econ/
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Keywords: ethanol; south dakota; farm policy;

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