Ethanol price drop may trigger North Dakota ethanol subsidies

A $3.7 million ethanol subsidy fund in North Dakota may be tapped if falling producer prices for ethanol go as low as $1.30 per gallon. Ethanol is trading at $1.70, down from nearly $2.50 a year ago.

North Dakota produces ethanol fuel equivalent to 68 percent of the state’s annual gasoline fuel consumption. New plant construction had slowed this year due to producer price imbalances, but the 50 Mgy Red Trail plant commenced production last month.

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