Many ethanol plants in Nebraska are turning their burners off. Leaving more than 1/3 of the state's ethanol plants out of production.
"We have some plants that have made decisions to stop operating for a few weeks here," said Nebraska Director of Agriculture Greg Ibach.
Nebraska is the second largest ethanol producing state with about $14 billion coming in annually.
"That combination of factors is really resulting in some economic issues for a few of the ethanol plants that have been marginal at best," said Nebraska Ethanol Board Administrator Todd Sneller.
Factors such as a soft demand for the product, rising gas prices and other ethanol-producing countries like Brazil exporting the product. This has caused an oversupply flooding the market place.
"We're hoping that maybe those market forces will tell those ethanol plants that it's time to kick on the burners again and start producing," said Ibach.
However there is a bit of light on the horizon as the ethanol plants in Albion, Ravenna and York will resume operations shortly.
