Consider pros and cons of corn ethanol

Nebraska has 21 ethanol plants in operation and another six plants under construction. This increased production of ethanol has raised many questions about the overall cost-benefit ratio of this industry.

Many controversial factors affect the production of ethanol, including fossil fuel use, environmental concerns, water use and job creation in communities near ethanol plants. To accurately assess the costs and benefits associated with ethanol, all these factors need to be evaluated.

Much of the controversy about ethanol production in the past has been created by conflicting studies that support both sides of the ethanol energy debate.

Most recent studies have determined that ethanol produces a net energy gain. A life-cycle energy analysis in 2007, which examined corn input costs and fossil fuel use, showed ethanol produces a 30 percent positive net energy increase over the amount of fossil fuels used during production.

The environmental costs and benefits are more difficult to measure. One concern is that large numbers of Conservation Reserve Program acres will be put into corn production, and this along with the added corn acres will increase the amount of fertilizer and pesticides used in the environment, increasing nutrient runoff and reducing habitat for wildlife.

Although some CRP acres were put into production in 2007 and more look to come out in the future as contracts expire, some CRP acres will not be farmed because they are highly erodible or not suitable for corn production. Improved farming methods, such as no till and heartier corn hybrids, increase the chances that acres taken out of CRP will be farmed with less erosion and fewer chemicals.

Water also is a concern when considering where ethanol can be produced. It is estimated that it takes three to six gallons of water to produce one gallon of ethanol, so a sustainable water supply is needed for ethanol production.

Whether the economic benefits of an ethanol plant make good use of water is up to the observer. Since water isn't valued like energy, it is difficult to put into context.

Before an ethanol plant is built, the local Natural Resource District must issue a permit. The NRD examines whether the proposed site has sufficient water for ethanol production. There must be enough water available to provide for the plant without adversely affecting the supply to nearby populations.

If ample water is available a permit usually is granted because of the economic benefits ethanol brings to an area.

Ethanol plants can benefit a community by directly employing between 30 and 40 on-site workers, as well as stimulating other local industries like grain haulers, distillers grain haulers and local contractors. A community also benefits from property taxes, the influx of jobs during the construction phase, a partnership with ethanol plants for city infrastructure and another local market for corn. Each person and community has to decide whether these benefits outweigh the costs.

The costs of ethanol production in Nebraska include water use,the total fertilizer and pesticide use, and movement of land out of CRP acreage.

These costs bring up valid concerns about water and the environment. Recognizing these concerns is important when looking at the reality of ethanol production as an industry.

Although studies are showing a net energy increase with ethanol, it is important to look at all the factors that go into the process when determining benefits of this industry to a community.

Tom Drudik is a Hall County Extension specialist in agriculture.