Lower fuel demand and lower oil prices are impacting the U.S. ethanol industry. NDSU Extension bioenergy and bioproducts economist David Ripplinger says there’s going to be a global economic slowdown due to the coronavirus. “When we saw this in the 2008 financial crisis, people traveled less and we used less gasoline. Consequently, we’ll also use less corn ethanol,” says Ripplinger. “Also, the positive things that were happening in corn ethanol export development will likely be postponed or lost. A few of those target countries will be experiencing things just as bad or worse economically than the U.S.” Ripplinger says it’s a wait-and-see environment right now, but ethanol plants in North Dakota have been resilient. “Industry-wide, we’re going to have more excess capacity and some will have to come offline. We do have some well-positioned plants in North Dakota.”
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