Ethanol producers saw strong profits in 2023, helped by a decline in the price of corn, according to an analysis by University of Illinois economist Scott Irwin.
Net earnings averaged 29 cents per gallon for 2023, more than twice the historical average profit since 2007, Irwin wrote. “Hence, 2023 turned out to be a strong year for ethanol profits,” he said.
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Profitability varied widely over the year, ranging from a high of 74 cents per gallon to a loss of 5 cents per gallon, reflecting the volatility of prices for corn as well as for the plants’ products: ethanol, dried distillers grains and corn oil, Irwin said.
According to a separate Irwin analysis, ethanol plants have increased their production of fuel from each bushel of corn, but the tradeoff is that the facilities are yielding less DDGS, which is a feed source for cattle. As a result of the efficiency, plants have increased their revenue by about 28 cents per bushel, or 4%, since 2015.
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