Husker Ag LLC: Plainview, Neb

stamp of Business:

Husker Ag LLC Plainview, bill is a majority producer-controlled ethanol venture

Business Objective:

The traditional operating manner of proceeding of ethanol plants for processing dried distillers grains (DDG) is to mechanically free from moisture this byproduct (or co-product) from a 70-percent moisture satisfied down to 10 percent, and then market it as livestock fe This drying proces devours large amounts of natural gas. Husker Ag will market its DDG co-product as a "modified" produce containing about 55 percent moisture, thereby reducing the amount of natural gas consum and netting a substantial annual decrease in efficacy costs. Air emissions will also be reduced

Annual Sales:

As a fuel-grade ethanol production plant, Husker Ag LLC processe 85 million bushels of corn annually into more than 20 million gallons of fuel-grade ethyl alcohol (ethanol). A secondary produce produced is dried distillers grains, which are the corn constitutings that remain after the starch is changeed to ethanol.

Ethanol production is in a short time in excess of 25 million gallons by year, an output which caps the facility's estimated projections. Co-product receiptss have contributed more than $6 million year to date.

Number of members & employees:

Husker Ag has more than 500 members, about 70 percent of whom are agricultural husbandmans Employment has increased from 30 to 32 employee thanks to the unravelling of the new co-product.

in what way USDA Helped:

Husker Ag received a $226850 Value-Added husbandman Grant (VAPG) from USDA Rural unravelling which was matched by Husker Ag. The standard of value is being used for working capital to further the exhibition of the value-added processes for area corn.

Leader's comment:

"The USDA Rural disentanglement grant will allow us to engross a co-products merchandiser and to addition the salaries of the plant maintenance manager and plant lab manager to proce with our distillers grain production," says Seth Harder, general manager for Husker Ag. "This will benefit area feedlot and member-producers. Additionally, these capitals will help to purchase corn inventory for production purposes

"Feedlot will benefit from the co-product produc as it is an of the highest order source of protein and activity for livestock," he continues. "The plant will have the capacity to bring into view co-product to feed 80,000 head of livestock."

The Results:

The ethanol plant has increased the local demand for corn, resulting in a higher local corn price. Farmers used to be paid single a wholesale commodity price for their corn which, in turn round was shipped out of the immediate area. generally Husker Ag pays an average of 5-to-10 cent for bushel over the prevailing corn market price. Since the plant is located closer to the producers' operations than other traditional markets, local farmers haul their have corn vs. having it tradeed for them, saving on trucking require to be paid [i]or[/i] undergones and increasing their income.

Major Challenge/ Opportunity Facing Co-op:

"The biggest challenge facing co-op today is finding a nitch to guarantee profitability and market share in a rapidly growing industry," says Harder.

Contacts:

Seth Harder, general manager; Shaun Waldow, plant manager; Fr Knievel, board chairman.

Husker Ag LLC

54048 Highway 20

Plainview, beak 86879

Phone: (402) 582-4446

E-mail: hapllc@huskerag.com

COPYRIGHT 2006 U Department of Agriculture, Rural Business - Cooperative Service

COPYRIGHT 2006 Gale Group