Red Tail Energy and Midwest AgEnergy forced to bring corn in by rail following drought

October 4, 2021 |

In North Dakota, InForum reports Red Tail Energy and Midwest AgEnergy are struggling to source local corn due to the drought in the region this summer, forcing them to bring in more expensive corn by rail which will hit margins negatively. With Red Tail Energy typically sourcing 65% or more of its corn within 75 miles of the plant, and Blue Flint sourcing up to 80% locally, but with average yields of 50 to 80 bushels per acre compared to 100 to 140 bushels in most years, local sourcing will be a challenge. An estimated 30% of this year’s corn crop will be used for animal feed compared to 80% in an average year.

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Category: Fuels

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