Ethanol Boom Fading

The ethanol boom in the most recent years may be coming to an end or at least fading. The spending in infrastructure from investors created a boom in construction for distilleries due to rising corn prices. The boom was a sparkle of hope for rural America who already received federal subsidies for growing corn.

Rural farmers were ecstatic about ethanol thinking it was a gold rush for biofuels. However, part of the problem was that the expansion happened too quickly. Distilleries were built too fast creating a market overload in the ethanol industry, partially because the means to distribute the ethanol has not kept up.

Biofuels are a great idea to wean America off of foreign oil, but not all cars can run off of ethanol. If ethanol were as widely available as diesel, and all auto manufacturers made their cars duel use for gasoline and ethanol, then perhaps it would have a fighting chance in the states. The next elected president will most likely be asked to help the the slumping ethanol industry. With the environment and energy independence as a top priority in the race, the next president may come to the rescue with federal aid, putting the burden on tax payers.