“We have an interest in fourteen plants,” Forsythe commented. “We don’t own any of the plants outright. We have anywhere from ten to close to fifty percent interest in those plants. We don’t want to be the only owner because there’s an issue on the supply of corn. If you don’t have the farmers invested in it, there’s no obligation on their part to bring the corn to you.
“Most of the plants are structured as co-operatives,” he explained. “For example, we own about forty-eight percent of a plant in Palatine, Illinois, but there are four hundred investors in addition to us in that plant, and each of them has to commit X number of bushels for every share they buy. That way, you’re assured a supply of corn. The big guys like Cargill can go out and build plants on their own because they’ve got grain elevators all around the United States so they’ve got a supply of corn.
“But we will continue to invest as long as the plants are structured properly with the right contractor and the right technology. I see for the foreseeable future that we’re going to continue to invest in these plants because this is going to be good business for a long time. We’ve also invested in our first bio-diesel plant in Freeport, Illinois this year. We’ve established a relationship with a firm out of Iowa that is building bio-diesel plants. Again, if it’s structured well and in the right location we’ll invest in those as well.
“There are very few dollars looking at any other fuel at this point,” Forsythe added. “I think over the next five to ten years ethanol will be the big player. It’s going to be huge. For the foreseeable future, ethanol is where you want to be. There is considerably more money being spent on ethanol plant construction and expanding the infrastructure to deliver the product than any other alternative fuel. Actually, there isn’t anything else even close.”
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