Minnesota ethanol plants struggling but in better shape than 2012

In Minnesota, ethanol plants are suffering from tight margins but are in a far better place than 2012 when corn was double the price it is now at $8 per bushel, in large part because strong margins in 2014 allowed producers to pay off debts and straighten out their balance sheets. Some are having to shut down, however, like Buffalo Lake Advanced Biofuels plant in Buffalo Lake that closed in January. Analysis from local newspaper the Star Tribune showed that “Minnesota-affiliated producers that disclose financial results reported a 76 percent to 89 percent drop in operating income compared with the period in 2014” while two showed losses.