US ethanol sector to shrink

In the ethanol industry’s infancy, small, locally owned plants were the way for farmers to capitalize on a booming industry.

Then, all of a sudden, Wall Street found out there was money in ethanol and jumped on board.

Today, the industry is struggling due somewhat to the global economic recession and bad gambles made by certain players. Wall Street is shying away from ethanol as it deals with its own financial turmoil.

… Speaking at the American Bankers Assn.’s Agricultural Bankers Conference in November, Mark Lakers of Agribusiness & Food Associates said as many as 40 ethanol plants could be bankrupt by early next year of the roughly 175 plants currently under construction or on line.

Farm Online