Will ethanol boom lead to bust?

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In the state of Indiana 18 ethanol plants are either under construction or have announced plans to build in the state. However, Indiana is not the only state where new plants are going in and some experts say given the current rate of expansion — about 70 percent per year — the industry could easily overbuild.

An article in The StarPress suggests the ethanol industry could be headed for a boom and then a bust. Christopher Hurt, ag economist at Purdue University told The Star Press that the ethanol industry can’t continue to grow at its current pace and at some point the availability of corn will become a constraint. Cash corn prices are currently around $3.50 in the state. Anything higher than that could, says Hurt, put pork production in the red.

To read the full article, go to: http://www.thestarpress.com/apps/pbcs.dll/article?AID=/20061126/NEWS01/611260339/1002

The StarPress.com


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