By: Ben Bakko, Director, North Dakota Corn Growers Association State Board, District 1
Over the past few years, my experience with ethanol has undergone a significant transformation. As a farmer with my family near Walcott, North Dakota, we produce a variety of crops, including corn, soybeans, sugar beets, and hard red spring wheat. Our family farm, now in its fourth generation, is located between two ethanol plants, each situated approximately 45 miles away. Additionally, the local cooperative, just eight miles from our farm, utilizes a shuttle loader to transport my corn. The rise of ethanol has been a pivotal force in shaping the market dynamics, particularly in driving the expansion of corn acres on my farm and throughout our region.
Last year, the geopolitical landscape, coupled with the surging demand for U.S. ethanol, played a crucial role in elevating the ethanol plant basis bids by about 30 cents compared to the local shuttle loader. This financial advantage more than compensates for the additional costs associated with trucking and labor for the longer journey to the ethanol plant. Additionally, Guardian Ethanol in Hankinson, North Dakota, has embarked on a substantial expansion project that is set to increase their plant’s capacity by 50 percent. When completed, this expansion will position Guardian Ethanol as the fifth largest ethanol plant in the United States. Observing these developments, I am optimistic that basis levels will continue to improve in our area, allowing me to actively participate in the burgeoning value-added agriculture sector right here in North Dakota.
The potential realization of E15 presents an exciting opportunity to further boost corn demand. This could significantly enhance the already challenging financial situation on my farm. As I reflect on these developments, I am filled with a renewed sense of hope regarding ethanol’s future. It has become an integral component of my farming strategy, and I am confident that it will continue to play a vital role in driving economic growth and sustainability on my farm and in our community. Ethanol’s evolving landscape offers promising prospects, and I am eager to embrace the opportunities it presents.