Agricultural Economic Report No. (AER-607) 25 pp

March 1989

Economics of Ethanol Production in the United States

Expansion of the U.S. ethanol industry hinges largely on extension of the Federal fuel excise tax exemption and corn prices. This report examines production costs and the relative competitiveness of the ethanol industry. The report evaluates structural characteristics of the industry, including economies of scale and the relative economics of the two primary manufacturers, wet- and dry-mill plants.

Keywords: ethanol, liquid fuel, production costs, production technology, future technology

In this publication...