Ethanol Blog
Cheryl Anderson DTN Staff Reporter

Tuesday 06/17/14

Distillers Grain, Corn Oil Aid Ethanol Profitability

Ethanol profitability in Iowa is the best ever, as the ethanol industry has created a financial revival for rural America, according to an article by the Mason City Globe Gazette (…).

Walt Wendland, CEO of Homeland Energy Solutions in Lawler, Iowa, said in a recent speech, that the strength of the industry, in Iowa and other ethanol-producing states is aided greatly by distillers grains and corn oil, both vital coproducts of ethanol production. Distillers grains are sold mostly as a nutritious livestock feed and corn oil is used in biodiesel production.

Ethanol production in the U.S. has grown from a mere 2 billion gallons per year in 2004, to nearly 15 billion gallons in 2013. The industry has also played a huge role in the 158% increase in U.S. farm net income since 2003.

Approximately 90% of U.S. ethanol production comes from the Corn Belt: Iowa, Minnesota, Illinois, South Dakota, Nebraska, Kansas, Ohio, Indiana and Missouri.

Exports of ethanol are vital to ethanol profitability, as well as exports of dried distillers grains. However, the effects of recent decision by China to stop issuing permits for imports of DDG because of the MIR 162 trait that has not yet been approved there, are yet to be seen.

Cheryl Anderson can be reached at


Posted at 3:54PM CDT 06/17/14 by Cheryl Anderson
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