Tracking Ethanol Profitability

AgMRC Renewable Energy Newsletter
Created June 2008

(updated monthly)

Don HofstrandDon Hofstrand                                                                           
Professor Emeritus Agricultural Economist
Iowa State University 

The profitability of ethanol production is extremely variable. Due to the volatile price nature of ethanol and corn, its major feedstock, ethanol profitability can change rapidly from month to month. In addition, price variations of its co-product (distillers grains with solubles, DGS) and its energy source (natural gas) add to the variability of ethanol profits.

The profitability of a typical corn ethanol production facility is tracked each month using current ethanol, corn, distillers grains with solubles and natural gas prices.

View the monthly profitability and underlying assumptions.