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By Matthew Wilde, Waterloo-Cedar Falls Courier, Iowa Knight Ridder/Tribune Business News
Jan. 31--IOWA FALLS, Iowa -- Raising corn that's highly fermentable and loaded with starch can be financially beneficial to farmers and ethanol plants.
Northeast Iowa is experiencing a boom in the ethanol industry. Hawkeye Renewables, a privately owned company based in Iowa Falls, recently opened a 45-million gallon plant in the community and started construction on a facility more than twice as big near Fairbank. Pine Lake Corn Processors near Steamboat Rock is expected to start producing 20 million gallons a year of the corn-based fuel additive in March.
The three plants will consume about 54 million bushels of corn a year.
This is about two-thirds of the total production of Hardin, Fayette and Buchanan counties, where the plants are located.
While the addition of three new substantial corn buyers will increase competition and prices, ethanol producers say farmers can rake in more dough by planting the right kind of corn.
Plants may be willing to pay premiums for corn that maximizes ethanol production. This means hybrids with a high starch content, the primary ingredient of ethanol. Being highly fermentable --- the process of turning corn starch into ethanol --- is also a plus