By: Health Insurance
Submitted: 2010-02-03 13:11:11 | Word Count: 391
With the record-breaking corn harvest, the role of ethanol as a backstop against plummeting corn prices and a cornerstone of Nebraska's agricultural economy became more evident.
"Ethanol provides guaranteed demand for corn producers," says Todd Sneller, Nebraska Ethanol Board administrator. "Ethanol is an ideal industry for Nebraska because of rural job growth and support of agriculture, the largest sector of Nebraska's economy."
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A recent industry survey by Ethanol Producer Magazine found that 83% of ethanol plant employees make over $40,000 per year, and 99% have health insurance. Many of the 23 Nebraska ethanol plants are located in smaller communities where quality jobs are essential to economic stability.
The resiliency of the ethanol sector was again illustrated when Michigan-based Zeeland Farm Services bought the idle ethanol plant in Cambridge. ZFS plans to resume production there during the first quarter of 2010, employing 30 full time workers. Aventine Renewable Energy announced it will resume construction at its Aurora West site, slated to begin production in 2011.
The combined production of the two plants is expected to exceed 150 million gallons of ethanol annually. Corn purchases at the two plants will increase demand by nearly 60 million bushels per year.
Nebraska ethanol plants already create an annual demand for more than half a billion bushels of corn, and have directly created more than 1,000 jobs. A 2009 study by the Nebraska Public Power District found that the indirect impact of the ethanol industry has created more than 3,000 jobs and $3 billion in economic activity in Nebraska. Ethanol production at the Cambridge and Aurora locations will add to the impact of ethanol production in Nebraska. A federal standard for renewable fuel use will further increase demand for ethanol during the next several years.
Established in 1971, the Ethanol Board assists ethanol producers with programs and strategies for marketing ethanol and related co-products. The board administers public information, education and ethanol research projects, as well as assists companies and organizations in the development of ethanol production facilities in Nebraska.
