New money changes ethanol industry

The bulls on Wall Street have developed a taste for midwest corn. They’re investing in corn based ethanol. That’s both good and bad for Minnesota farmers. The state is a leader in building farmer owned ethanol plants. But now that model is feeling pressure from the corporate world. Farmers are concerned it means a good share of future ethanol profits will leave the state.

Worthington, MN

“Really the change that symbolizes is that the ethanol industry has caught the attention of corporate America,” says Christianson. “And has also caught the attention of Wall Street.”

Christianson is an ethanol industry insider. Part of an accounting firm, he’s helped plan and guide the financial side of more than 50 ethanol plants around the U.S. He’s followed ethanol money for years, and he says right now grassroots investment is falling behind venture capitalists.

“It’s coming in with larger blocks of dollars that are from some institutions that are buying larger investments, some larger companies and just individuals that want to make a significant investment into the ethanol market,” says Christianson.

Minnesota Public Radio