JACKSON, Neb. (KCAU) –It’s a new day, and a new area of business is making big changes because of the coronavirus. Siouxland Ethanol announced recently they will be suspending production come April, They said it was a hard decision to make, but with the lack of demand, the company said it was a necessity.
“There is a lot of hope but it’s going to be hard. I mean, no one knows how long this is going to last and no one knows how destructive this is going to ultimately be to the market, and the different demand channels that corn finds it way to, so until we start figuring all of that out there is not a whole lot we can do,” said Taylor Nelson, a local farmer.
It’s low gas prices that are leading to the closure of Siouxland Ethanol next month, a tough decision that Siouxland Ethanol president Nick Bowdish said had to be made.
“Long term, we’re optimistic. We are a gritty bunch in agriculture. We will get through this too, and the way we get through it is working together,” said Bowdish.
Bowdish said the lack of demand means there is no place to currently send the ethanol they are making and no place to keep storing it. It’s impacting not just his company, but local farmers as well.
“Just in the next 90 days, that is 40,000 acres of corn that would normally be consumed in our plant that won’t be consumed so it is a significant impact here on agriculture,” said Bowdish.
It’s a loss for many farmers, but local farmer Taylor Nelson said although he is concerned, he needs to focus on now.
“We need to go put a crop in the ground come this spring, and so I think a lot of guys are just figuring out how they can move forward and how they can start working on that and not worry so much about the immediate moment where we are with the corn price,” said Nelson.
The president of Siouxland Ethanol said the best way the public can help the industry and farmers is when buying gas, to use ethanol blends higher than 10 percent.