Farmers see their future in fuel Web source: http://www.detnews.com/apps/pbcs.dll/article?AID=/20060524/AUTO01/605240325/1148 Biofuel could give new meaning to the term 'cash crop' for Midwest cornfield operators. Peter Slevin / Washington Post GOLDFIELD, Iowa -- The complex looks like a refinery and smells like a bakery. From a pipe at the back flows a clear liquid that could be confused with vodka, except it can power an automobile and, its backers hope, propel ordinary Iowans into biofuel heaven. The pungent liquid called ethanol, made from corn, has Iowa farmers giddy. Inspired by high oil prices and changing sentiment in Washington, thousands of investors are pouring tens of millions of dollars into new facilities, such as the $90 million plant here. "We'll be the Arabs of the Midwest," mused John Becker, manager of a farm cooperative. Ethanol prices are surging across the country as legislators add incentives to spur usage and fleet owners rejigger their fuel orders to cope with $3-a-gallon gasoline. The boom has meant profits for early investors, corn farmers, truckers and suppliers, even as financial analysts and government officials hurry to assess the fuel's staying power. With national capacity more than doubling in the past three years and set to grow an additional 50 percent by the end of 2007, the wave is moving fast: Detroit: Car makers are increasing their commitment. General Motors Corp. says it will make 400,000 more flex-fuel vehicles, which will join more than 5 million on the road. New York: Republican Gov. George Pataki this month announced construction of the state's first ethanol plant. California: Microsoft Chairman Bill Gates recently invested $84 million in Pacific Ethanol Inc. Illinois: Agribusiness giant Archer Daniels Midland Co. recently announced an expansion. Iowa takes the lead Iowa, the top corn-producing state, is the nation's ethanol leader: The state generates 25 percent of U.S. . In addition to 22 ethanol refineries in operation, the state has seven under construction and at least 20 are being planned. The boom here has largely been a grass-roots phenomenon, fueled by clusters of growers, bankers and small-town professionals. Aspiring biofuel plant owners have been delivering investment pitches statewide.
