Extension Communications
3614 Administrative Services Building
Ames, Iowa 50011-3614
(515) 294-9915
4/1/03
Contacts:
Ray Hansen, value- added agriculture specialist, Agricultural Marketing
Resource CenterAgMRC, (515) -294-3890, hansenr@iastate.edu
Christa Hartsook, communications specialist, Agricultural Marketing Resource
CenterAgMRC, (515) -294-4430, hartc@iastate.edu
AgMRC Web Site Assists Producers with Analyzing Ethanol Plant Feasibility
AMES, Iowa -- As the nation's ethanol industry continues to grow, interest by producers and others interested in investing in existing or new ethanol facilities also is rising. However, simply having a strong interest and a good supply of grain for ethanol plants does not guarantee a successful ethanol business.
To help producers and other potential investors analyze potential ethanol facility investments, the Agricultural Marketing Resource Center (AgMRC) has developed and refined an online ethanol pre-feasibility model in cooperation with Business Advisory Services, a management company affiliated with the financial institution, Co-Bank. The model is available at http://www.teambas.com/isu/src/isutop.php and introduces business issues about ethanol production with information on the potential of building ethanol plants.
AgMRC value-added agriculture specialist Ray Hansen said Web site users can select different and varying input and output costs and analyze the affect those costs have on plant profitability.
"Ethanol market conditions, grain supply and prices, transportation choices, environmental issues, energy costs, federal and state incentives and funding alternatives are some of the variables that must be understood and managed before embarking on an ethanol venture," Hansen said. "This Web site helps producers understand how these economic factors operate in successful -- and less than successful -- combinations before they proceed with an in-depth analysis of a specific opportunity."
The AgMRC is a newly formed national electronic resource center for value-added agricultural groups. The purpose of the AgMRC is to provide independent producers and processors with critical information to build successful value-added agricultural enterprises. Producers, extension personnel and rural development specialists may contact the resource center by toll free phone at 866-277-5567 or e-mail at agmrc@iastate.edu or through the Web site www.agmrc.org.
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