For the U.S. ethanol production industry, 2016 represented the fourth consecutive year of positive ethanol production profits. Surging ethanol export demand was largely responsible for the upswing in profits.
But changing trade policies under the new Trump Administration have put a damper on profits in recent weeks. Uncertainty in the market will not benefit the ethanol industry.
In 2016, net profits average $0.12 per gallon, about $0.05 higher than in 2015, with cumulative net profit for the year at $13 million.
Read more about this analysis of the ethanol industry at Farm Doc Daily.