Ethanol trend good news for Kansas farmers
Kansas has seven dry mill ethanol plants producing 65 million bushels of sorghum and corn into ethanol fuel annually, according to ksgrains.com.
“The industry will double in the next couple of years,” said Steven McNinch, Western Plains Energy LLC plant manager.
Kansas corn production totaled 465.8 million bushels in 2005, ranking the state seventh among other corn producing states, according to the Kansas Corn Growers Association.
The grain market will grow as ethanol production expands. A larger market means a larger demand for corn and grains, boosting farming profits, according to Sue Schulte, Kansas Corn Growers Association communication director.
Growers near newer plants, like Western Plains in Oakley and East Kansas Agri Energy near Garnett, negotiated with corporate administration to invest in the plants before completion, Schulte said.
This trend will continue as new plants develop.
Arkalon Energy LLC, a subsidiary of Conestoga plans to build another plant near Liberal next year, according to Schulte.
“This is a benefit for growers to invest in a value-added venture,” Schulte said.
Initially plants requested $10,000 per investor, or group to buy into the plant.
As the industry grows, the cost to invest will rise, according to Schulte.
When ethanol is made, the starch from the grain is fermented into sugar and distilled into alcohol.
After the distillation process two other products remain: distillers grain and carbon dioxide, said McNinch.
The distillers grain is a concentrated livestock feed that is mixed with other grains or food and given to animals, according to Kyle Larson, Pretty Prairie corn farmer.
There are two types of ethanol fuel mixtures, E10 and E85. E10 is made from 90 percent gasoline and 10 percent ethanol. E85 is newer and is made from 85 percent ethanol, according to Larson.
The E10 mixture is found throughout most Kansas Towns. There are seven gas stations selling E10 ethanol gasoline in Lawrence, according to ksgrains.com.
Ethanol fits well in Kansas because the state holds substantial farming and livestock industries. The distillers grain that is left behind when ethanol is distilled is a good source of feed for Kansas livestock farmers, according to Larson.
But ethanol is only a quick fix for the nation's dependence on oil, Larson said. Because most vehicles are not designed to run on E85 ethanol, only a portion of gasoline consumption is taken away with the use of ethanol.