News at Mid-Missouri Energy of Malta Bend, Missouri, 660-595-0144

October 22, 2007 - MME Mourns Passing of GM Billy Gwaltney
August 18, 2006 - Corn Harvest Underway
March 13, 2006 - Mid-Missouri Energy Announces Stock Split and Expansion at Malta Bend
July 14, 2004 - Mid-Missouri Energy Hires Billy Gwaltney as General Manager
March 22, 2004 - Mo. Ag Director Peter Hofherr Addresses Mid-Missouri Energy Annual Meeting
December 19, 2003 - Mid-Missouri Energy Closes on Financing and Commits for Gas Supply
September 26, 2003 - Mid-Missouri Energy's Groundbreaking Draws National Leaders to Malta Bend
September 25, 2003 - Mid-Missouri Energy to Break Ground Saturday, October 4, for Ethanol Plant
August 4, 2003 - Mid-Missouri Energy Makes Report at American Coalition on Ethanol Conference

June 19, 2003 - Mid-Missouri Energy Growth Approaches 700 Producers
April 14, 2003 - Mid-Missouri Energy Names Malta Bend for Ethanol Site
April 7, 2003 - Mid-Missouri Energy Breaks All Records in Equity Drive and Extends Offering Period
January 23, 2003 - Mid-Missouri Energy, Inc. Ethanol Project To Begin Equity Drive
December 12, 2002 - Mid-Missouri Energy Opens Office in Carrollton and Brings in Project Coordinator
September 5, 2002 - Farmer Steering Committee for Ethanol Merges With Mid Missouri Energy!
July 17, 2002 - West Central Missouri Farmer-Owned Ethanol Plant Moving Forward!
June 20, 2002 - Phase A Report Scheduled
June 7, 2002 - $198,000 Grant Approved!
May 17, 2002 - Missouri Legislature Supports Ethanol
April 15, 2002 - Feasibility Study Begins

Groundbreaking Photos | Grand Opening Photos | Photo Archives

2006 Corn Harvest Officially Underway
August 18, 2006

The 2006 corn harvest officially began August 16 for Don and Mike Arth whose farming operation, Arth Farms, is located in the Missouri River bottoms between Grand Pass and Waverly. According to Don and Mike, their fields were planted the first week of April with Garst seed using 15- inch row spacing. (MME General Manager Billy Gwaltney reports Don is being challenged with corner turns using the new row spacing.)

Click on photos to see a closer view...

Above left, Don, Mid-Missouri Energy board of directors vice president, is shown standing next to the new John Deere 9660STS that’s being broken in with this year’s harvest.

President Ryland Utlaut has announced plans to double the ethanol production at Mid-Missouri Energy located in Malta Bend, Missouri. “This has been a big decision, and a heavier one than it was to build this plant in the first place,” Utlaut stated. According to Utlaut the board reached this decision only after careful consideration of options available.

The board was swayed by the strong demand for ethanol and an abundant supply of corn in the area. The expanded plant will enjoy some improved efficiencies and productivity. “Our nation and our state are behind ethanol; auto manufacturers are behind ethanol; it’s a great time to be in the business,” Utlaut continued. “We have an opportunity to be a leader in reducing our nation’s dependence from foreign oil here in mid Missouri, and we believe this will benefit our owners, our communities, our state and our nation.” Utlaut praised the excellent personnel running the existing plant and the fact that Fagen’s original design was done with expansion in mind. With only 7 months of operation under their belt when the first fiscal year ended on September 30, the investors enjoyed over 30 percent dividends.

Along with the expansion decision the board of directors also announced a 5 to 1 stock split for the coop’s 726 owners. The overwhelming success of the company and expansion discussions, as Utlaut explained, led the board to determine the current value of the original equity of the company, resulting in the decision for a stock split. Members will be notified of details of their stock split as well as the equity structure for the expansion. The expansion, estimated to cost $50 million will be funded by internal equity of the company.

Mid-Missouri Energy, a farmer-owned corn processing ethanol production facility, started operations in February, 2005. The 40 million gallon per year facility has consistently operated at a 46 to 49 million gallon per year rate without problems. Upon expansion the plant is expected to perform comfortably around 96 million gallon per year providing a use for 34 million bushels of corn. The additional corn usage is expected to add eight cents per bushel to the area corn price. The expansion will cause Mid-Missouri Energy to add five to six employees to the current 37.

Mid-Missouri Energy has announced the hiring of Billy Gwaltney as General Manager. Mr. Gwaltney, a chemical engineering graduate of University of Missouri at Rolla, comes to MME with 20 years experience in the corn milling business with Cargill, Inc., having served most recently as Operations Manager for their Feed Products Group at nine plants in North America. As General Manager, Gwaltney will serve as the Chief Executive Officer, reporting to the Board of Directors, managing, directing and coordinating all activities of the 729 member producer cooperative. Originally from Missouri, Gwaltney calls it “coming home”. “I am excited and eager to join Mid-Missouri Energy and look forward to putting together a team that can obtain optimum efficiency and economical operations to ultimately provide profit and return to our members,” Gwaltney said. “This project will breathe new vitality into our rural communities and I want to be part of that,” he continued. “I have a lot of work in front of me, but I love a challenge.” Gwaltney will officially join MME in August, moving from Iowa with his wife Becky, daughter, Sarah, and son, William.
“We are very impressed by the management and motivational skills Mr. Gwaltney will bring to our cooperative” said MME President Ryland Utlaut.

“Plant construction is about 50% complete and our Board of Directors felt it was time for the General Manager to come on board, get involved with the project in order to be ready for production this winter,” Utlaut continued. MME will hire about 35 employees by late fall to winter so that training can take place before plant startup. Startup is anticipated for late January to early March. According to Patty Kinder, Project Manager, construction continues to be slightly ahead of schedule. MME’s gas line construction is underway, the office building at the site has started, and the rail spur construction is getting started. “There is a lot going on in addition to construction related issues to have us ready for the additional staffing,” Kinder continued, “it will be good to have our leader in place pulling the pieces together.” Gwaltney joins current staff members, Patty Kinder and Linda Green, temporarily officed in Carrollton.

MME’s ethanol plant will tap the abundant supply of corn produced in the region as it will use nearly 15 million bushels of the approximate 70 plus million bushels produced in the area, adding value to the farmers’ corn crop and reducing our nation’s dependence on foreign oil.

Over 300 members and friends of Mid-Missouri Energy attended their Annual Meeting at the Malta Bend School in Malta Bend, Mo. Saturday. Described as a good friend to Mid-Missouri Energy by President Ryland Utlaut, Mo. Agriculture Director Peter Hofherr addressed the audience saying “Agricultural Entrepreneur-ism is flourishing in Missouri.” Hofherr’s visit revealed an announcement by Governor Holden that Mid-Missouri Energy has been awarded a Community Development Block Grant of $350,000 to assist with the gas line necessary for the ethanol plant. The application was sponsored by the City of Marshall. Hofherr reported that, shortly after Hofherr became Director, the Governor had asked the Department of Agriculture and Department of Economic Development to work closer together. This grant award is a direct result of that request and these groups working closely to address rural development. Hofherr also spoke of the urgent need to fully fund the Ethanol Incentive Program for Missouri. “With Mid-Missouri Energy coming on-line soon Governor Holden has asked me to look at and get a plan to find a permanent source of revenue to fund the Ethanol Incentives,” Hofherr said. He is seeking input from Missouri Corn Growers as well. Hofherr went on to ask MME members to contact their representatives and senators to come up with funding. “Ethanol is a bright spot in Missouri Agriculture because 729 producers have stepped up to take a chance, and we, in Jefferson City, want to do our part to support that. It is good for our economy and our nation,” Hofherr concluded.

David Kolsrud, MME member from Luverne, Mn., and equity coordinator, briefly updated members on news within the ethanol industry. He told the group MTBE (methyl tertiary butyl ether) issues are slowing down the progress of the energy bill. Ethanol with a current $1.80 rack price and three dollar corn make investors very happy right now, Kolsrud commented. Also present was Matt Sederstrom, Project Developer and Jim Theodore, Construction Manager, from Fagen, Inc. They reported the construction slightly ahead of schedule. Theodore reported signs are now erected at the site to remind all visitors it is imperative that they report to the Fagen office at the site. Safety procedures are very strict and do not allow “free roaming” at the site.

In other business before the MME members, the corn delivery and pool concept was discussed and the 15 board members were elected. In future years five members will be elected to three-year terms each year. Members also approved compensating board members for meetings attended prior to financial close at such a time as the budget allows.

Mid-Missouri Energy Closes on Financing for 100% Farmer Owned Ethanol Plant in Saline County and Commits to Marshall Municipal Utilities for Gas Supply
Friday, December 19, 2003

“Area farmers have done something amazing and remarkable in mid-Missouri”, President Ryland Utlaut said at Friday’s MME loan closing, held at Wood & Huston Bank in Marshall. “In only 10 and one-half months this Mid-Missouri Board of farmers has taken us from telling our story to anyone who would listen at some 100+ meetings to a fully funded project, financing documents signed, and construction underway.” Several Mid-Missouri Energy board members attended the document signing event with the AgStar Financial Services Vice-President Mark Schmidt, Fagen, Inc. owner, Ron Fagen, and their attorney, as well as Wood & Huston officials. Utlaut explained that while the primary lender for this project is led by AgStar based in Minnesota, local banks were given the opportunity to participate in assuming whatever portion of the debt package they desired to help supplement the 40+% equity provided by farmer investors. Schmidt praised MME for the quality of their project and stated AgStar looks forward to a long and prosperous relationship. Utlaut praised Wood & Huston who took the lead in rounding up local banking interest in several counties and then served as the lead lender for the local loan participation portion. “We simply could not have accomplished all of the many pieces of this tremendous project without the excellent board I have had the privilege to work with and the fantastic support from the lending institutions. Several banks in nearby counties have stepped up to participate with this project,” Utlaut continued, “and for that we are very,very grateful.”

At the conclusion of the lending and legal documents being signed, it was announced that Mid-Missouri Energy, after reviewing options for procuring gas, has determined that they will work with Marshall Municipal Utilities in securing gas service to their plant. Some months back, MMU Superintendent Paul Jensen made a proposal to MME for gas service. Looking for ways to help secure an increased gas supply for the City of Marshall’s future growth, Jensen saw MME as a way to help that happen. The two groups have negotiated to a place that MME signed a Letter of Understanding with MMU to commit to using gas transported from Panhandle Eastern and MMU. MME’s plan is to have a pipeline designed and built from Marshall to their plant to be located in Malta Bend. Utlaut and Jensen agreed their agreement will create a win-win for both parties.

Reporting as to the progress at the site, MME Project Coordinator Patty Kinder seemed pleased that the dirt work is complete, geo piers are well underway to stabilize soil for heavy structures and a concrete pour is scheduled for next week for one of many tanks at the site. Fagen has a double-wide trailer at the site for a temporary on site office. Construction is scheduled to be complete in March of 2005 and use nearly 15 million bushels of corn from the area.

News received by Mid-Missouri Energy confirms U.S. Senator “Kit” Bond and U.S. Senator Jim Talent will attend the Groundbreaking Ceremony at the Malta Bend site on Saturday, October 4. Representing U.S. Representative “Ike” Skelton will be his legislative director, Dana O’Brien. Joining the national leaders will be several Missouri officials as well. At this writing those include Peter Hofherr, Director, Mo. Department of Agriculture, Missouri State Representative John Quinn, Missouri State Representative Jim Seigfreid, Missouri State Senator David Klindt, Tony Stafford, Executive Director, Mo. Agricultural Small Business and Development Authority and Gary Marshall, CEO, Mo. Corn Growers Association.

“This is wonderful news,” MME President Ryland Utlaut said, “we are highly honored to attract so much national attention for mid Missouri farmers.” Utlaut encourages MME’s 720 plus investors and other interested individuals to attend and help celebrate this milestone. The complimentary lunch will get underway at 11:30 a.m. with the groundbreaking ceremony starting at 12:30 p.m. at the construction site west of Malta Bend.

As Missouri’s third farmer-owned ethanol plant, Mid-Missouri Energy will process 15 million bushels of corn annually to produce 40 million gallons of ethanol, a clean-burning fuel for automobiles. The plant will create nearly 1,800 additional Missouri jobs, and increase Missouri economic activity by over $169 million. Ethanol produced by Mid-Missouri Energy will help lessen our dependence on foreign oil and clean the air in Missouri metropolitan areas.

Mid-Missouri Energy, a farmer owned cooperative, has announced their Groundbreaking Ceremony for a 40 million gallon per year corn processing ethanol plant. The big event will take place at the construction site approximately one mile west of Malta Bend, Mo., on U.S. Highway 65 on Saturday, October 4, from 11:30 a.m. to 1:30 p.m. MME has announced the completion of the land purchase. Although the official ceremony marking this new phase of the project is scheduled for Saturday, dirt moving equipment is at the site and site work is underway.

Several ethanol industry dignitaries and elected officials plan to attend this official beginning of the third ethanol plant in Missouri. Ceremonies will get underway at 12:30 p.m. complete with shovels. Patty Kinder, Project Coordinator for the cooperative, encourages their 720 plus investors and others interested in the project to attend the special event and enjoy the lunch to be served at the site. “We started out as a group of farmer/producers in a true grassroots effort and we are still that, just a whole lot more of us,” MME President Ryland Utlaut said.

The mid Missouri effort for ethanol formed in early 2002, operating as a farmer steering committee from the three counties of Carroll, Lafayette and Saline, then as Mid-Missouri Energy. Early on, the site prospects seemed to be set on Carroll County, but when the dust cleared the Malta Bend community came out on top. The plant will provide 35 quality jobs for the area. The site preparation and construction period alone will provide a significant boost to the economy of the region. Utlaut reports the cooperative has awarded the dirt contract to Boedeker Construction from Malta Bend. Fagen, Inc., of Granite Falls, Mn., will do the design/build of the plant. ICM, Inc., of Colwich, Kan., will be the process engineer. The project will cost about $60 million. Plant start-up is anticipated to be March/April 2005.

Ryland Utlaut, President of Mid-Missouri Energy, Inc. gave a report on the development of the ethanol project slated for Malta Bend, Missouri, to the 1000+ attending the recent annual meeting and conference of the American Coalition on Ethanol (ACE) in Sioux Falls, South Dakota. In Utlaut’s remarks he stated MME was a group of 15 farmers six months ago and today is 700 members strong with over $20 million raised in equity.

South Dakota Senator Tom Daschle gave a keynote presentation at the conference on Thursday. Then, Missouri’s Senator Jim Talent delivered a keynote on Friday morning which turned out to be timely as he was able to deliver news of the Senate’s passage of the energy bill the previous evening. This was great news to the ethanol industry as it contains provisions to ban use of MTBE, eliminate the reformulated gasoline oxygen standard, enhance clean air rules, and establish a minimum renewable fuels standard that grows to 5 billion gallons by 2012. The Energy Bill will now go to Conference. Senator Talent said he believes there is an excellent chance it will reach the President’s desk this year.

ACE is a non-profit membership organization that focuses on market development and legislative policy as well as research and promotion. ACE also publishes Ethanol Today magazine. MME board members Ron Linneman, Patty Kinder and Ed Dysart also attended the conference.

In other Mid-Missouri Energy news, Project Coordinator Patty Kinder reported they have closed the equity drive for their ethanol project July 29 and have set a national record for producer investment in an initial offering. Engineering for the rail design is also underway. A traffic study is being conducted to assess Highway 65 turn lanes. Construction for the project is expected to get underway this fall.

Mid-Missouri Energy, Inc. reports excellent progress in several areas that bring them closer to the reality of a corn processing ethanol production facility at Malta Bend, Missouri. MME President Ryland Utlaut reports that his board has decided to extend the offering until July 29. This provision was set out in their original offering document as an option. “We are very gratified to have reached over $19.5 million in equity for our project,” Utlaut said. “Four months ago we were a group of 15 farmers and now we represent nearly 700 producers who have invested.” New investments or additional unit purchases by members can come in until July 29, but that will be it. “This is the last extension,” Utlaut explained, “We cannot extend this offering beyond that date.” During this time MME will continue discussions with lenders with regard to financing the debt portion of the project and assess options available for MME, according to Utlaut. Encouraged with responses from local banks and national lenders, Utlaut said the banks have been very positive to our project.

Several activities are progressing simultaneously for MME according to Project Coordinator Patty Kinder. “We have executed a land purchase agreement and set the date for closing on the land in Malta Bend,” Kinder reports. Soil borings, an archeological survey, Phase I environmental assessment and application for permits with Mo.DNR have been completed as well, according to Kinder.

Mid-Missouri Energy board members traveled to Sioux Falls, South Dakota, to take part in the 19th International Fuel Ethanol Workshop & Tradeshow this week. Conceived as a service by its founder, BBI International, the International Fuel Ethanol Workshop & Trade Show is designed to provide the ethanol industry with the latest information on technology and services for improving production, product yields and operations of an ethanol facility using grain, sugarcane, cellulosic materials and many other biomass feedstocks.. Attending from Mid-Missouri Energy, Inc. included Ryland Utlaut of Alma, Don Arth, Grand Pass, Patty Kinder, Carrollton, Ron Gibson, Norborne, David Swearingin, Carrollton, Brian Miles, Marshall, Mark Casner, Carrollton, Dale Griffith, DeWitt, Jim Wheeler, Norborne and Marvin Oerke, Butler. Project Coordinator Patty Kinder reports that visiting with those in the ethanol industry, the group found that many are aware and knowledgeable of MME’s progress.

Mid-Missouri Energy has announced the Malta Bend site has been selected for their 40 million gallon per year ethanol plant, pending final negotiations. This decision comes just weeks after naming Carrollton as the preferred site followed by Malta Bend and Marshall. “The site committee’s recommendation of the Malta Bend site was unanimously upheld by the board,” says MME President Ryland Utlaut. “It’s not set in stone, but it looks like Malta Bend is where we will build the plant.”

Fagen, Inc., MME’s choice for construction of the plant, has said the Malta Bend site would be an easier location to build because it would require less site preparation. “That was Fagen’s preference, but they said they would build the plant wherever we instructed. Our board is the one who makes that decision,” Utlaut said. “It would be quicker at the Malta Bend site, where we are dealing with only one property owner,” Utlaut added. “It’s just simpler.” The Malta Bend site requires less site preparation and does not require an access road, as the Carrollton site does. Opposition to the site in Carroll County by a neighbor stood to hold up construction. The only alternative offered by the landowner was to buy his land, a cost not acceptable by the MME’s board.
“People have said we are going to build the plant in Carrollton because 10 of the board members are from Carroll County and five are from south of the river,” Utlaut said. “We have been accused of being political, but it was not a political decision.” Utlaut commended the entire board for their dedication and ability to work through the many issues without becoming political.

MME’s initial offering raised $16.75 million in equity. Their extended offering period will allow investors to sign up until May 31, 2003. Mid-Missouri Energy office is open at 11 North Folger Monday through Friday from 8 a.m. to 5 p.m.

Mid-Missouri Energy has announced they are extending their Equity Offering 60 days from its scheduled close of March 31, 2003. This decision comes after the tally of producers investing in the project reached between $16.5 and $17.0 million. “We are ecstatic over these results,” Ryland Utlaut, MME President reports. “We are told that $15.3 million is the most any ethanol project in the nation has raised in their initial equity drive. For us to have surpassed that record is nothing short of amazing,” Utlaut continued. The $12 million mark was needed in order to be 51% farmer-owned, the requirement of Missouri’s state incentives for ethanol production. MME Treasurer Ron Linneman recalls the board thinking $12 million was a tremendous challenge when they started. “To think that producers have responded well beyond the $12 million mark really speaks to the potential out there,” Ron Linneman said.

Utlaut explained that this success causes Mid-Missouri Energy’s board to believe it is possible to make this ethanol project a 100% farmer-owned plant. The board has expressed the desire throughout the equity drive to be 100% farmer-owned because they believe that is in the best interest of farmers. Their decision to extend the offering 60 days will allow new investors to come in and for existing investors to increase their stock purchases. “We must comply with the Blue Sky Law in other states with regard to the sale of equity,” Project Coordinator Patty Kinder reports. “Extending our offering will also allow time to meet requirements of various states from which we have received producer interest,” Kinder continued.

Mid-Missouri Energy previously announced Carrollton as their preferred site for the 40 million gallon per year ethanol plant, followed by Malta Bend and Marshall, respectively. The proposed plant would tap the abundant supply of corn produced in the region as it would use nearly 15 million bushels of the approximate 70 plus million bushels produced in the area. This extended offering period during which investors can sign up will end May 31, 2003. Mid-Missouri Energy office is open at 11 North Folger Monday thru Friday from 8 a.m. to 5 p.m.

Area farmers organized as Mid Missouri Energy, Inc., (MME) a Missouri Cooperative Association, continue to progress and have announced they will begin their equity funding drive on Monday, February 3, with a kick-off meeting in Carrollton, Mo., 7:00 p.m. at the Rupe Center, located just off Harvest Hills Drive north of US 65 and 24 Highways. Governor Holden, Mo. Department of Agriculture Director and several government officials have been invited, and a number of ethanol industry officials are slated to attend. This kick-off meeting will set the stage for a series of 62 meetings over six weeks in communities in a 70 mile radius of the four core counties of Carroll, Chariton, Lafayette and Saline. These will be public meetings with the complete project explained, including Offering information for interested investors.

In recent days organizers for the project have met with area elevators to discuss ways they can work with the ethanol plant to source corn. The plant will grind nearly 15 million bushels of corn per year. Although the plant will look to its members first for that corn, there are opportunities for elevators to be involved. Meetings have also been held with banks in the region to explain the project and provide the financial information that will help banks put together programs to assist producers considering investment in the ethanol project. Mid-Missouri Energy President, Ryland Utlaut, reports “several financial institutions have responded to our request to come and listen to the details of our project. We have been very pleased to hear that a number of these banks are taking that information and planning to offer some kind of program for qualified borrowers.”

The first equity meeting in Carrollton on February 3, 7:00 p.m., will be followed by additional meetings during that week to include:

While preparation for the equity drive takes place, Project Coordinator Patty Kinder reports the site evaluation process continues. MME’s Site Committee has met with representatives from railroads of potential sites. They are still in negotiations in several areas related to site selection. “A project this large is very complex. There are several factors that are critical needs of a site. Some things seem small when you get back and look at the total project. But all those small things soon become a big deal and affect the profitability at a particular site,” Kinder said. “This board is committed to locating the plant where the profit can be maximized. Without that we cannot expect to be successful in the equity drive.” Kinder continues, “I think many of us thought we would be through that part by now. We are closer, but not there yet.”

Ryland Utlaut, Chairman of Mid-Missouri Energy (MME), announces the opening of their new office at 11 North Folger in Carrollton as well as the naming of Patty Kinder as Project Coordinator for their group. “This was a big step for Mid-Missouri Energy, but needed because of the excellent progress made in recent months”, Utlaut said. According to Utlaut, the group had reached the point they needed full time office effort in seeing to the details of the project.

As Project Coordinator, Kinder will serve as the day to day contact between the Board of Directors and the various contractors assisting MME. Contractors are already involved for site selection, raising equity, site development issues, design/build, insurance, CPA work and legal work.“We have all realized this project is bigger than one county,” Ryland Utlaut, Chairman of Mid Missouri Energy, said.“It just makes sense for us to work together rather than separately,” he added.Following the merger, the group elected the following officers: Utlaut as Chairman, Don Arth as Vice-Chairman, Patty Kinder as Secretary and Ron Linneman as Treasurer.Other members of the reorganized Mid Missouri Energy include Dale Griffith, Ed Dysart, Joe Brockmeier, Art Kipping, Mark Casner, Lester Rolf, Jim Wheeler, Ron Gibson, Brian Miles, Dennis Hensiek, and David Swearingin.

MME Board member David Swearingin made room in the upstairs of his First Financial Group, Inc. and Carrollton Internet Service building for MME’s office. The new office allows space for MME’s Board of Directors meetings. Those meetings are lasting anywhere from 2 to 10 hours in duration. Committees for site, corn delivery, finance, public relations and legal are also meeting often. Utlaut had nothing but praise for the Board of Directors commenting about their will power and understanding for the tremendous time commitment required by such a project. “I appreciate the contribution the group is making to potentially benefit many, many lives,” Utlaut said. “We continue to have lengthy work sessions that are productive because these men and women have demonstrated the ability to work together.”

Acknowledging the generosity of Carrollton Area Economic Development by their allowing Kinder to work with the farmers, Utlaut feels the assistance has been monumental in getting the project off the ground. “Of course they wanted the plant to be located in Carroll County, and that may happen, we simply do not know at this time,” Utlaut continued. “The Carrollton community has been most gracious and we appreciate all the hours and resources made available to us,” Utlaut said. “We really did not set out to steel Ms. Kinder from the Carrollton Chamber, but we are pleased with her work, her interest in the project and desire to help us as Project Coordinator.”

Where will the plant be? Utlaut says they are getting closer. The board is still waiting for site evaluations from the firm who did their feasibility study. A big part of the evaluation will also come from the people at Fagen, Inc., MME’s design/build team from Minnesota. MME is also utilizing services from a Nebraska firm who gathers gas and electric information and assists with those negotiations. Those groups are still gathering and compiling their information.

Aside from the site work, another side to the work being done centers around preparing for the equity drive. The board is working closely with attorneys and accountants out of Minnesota, experienced with ethanol projects, to make necessary decisions regarding the business plan and offering document. Structure of producer investments and corn delivery policies are important details to work through. Board members have found that other successful ethanol plants around the country provide a wealth of information from which to draw.

Once funded, the plant is expected to take 14 months to build. Mid-Missouri Energy will consume over 14 million bushels of corn per year in order to produce 40 million gallons of ethanol and 130,000 tons of dried distiller grains per year. MME plans to initiate their equity drive in late January and hold several public meetings in several west central Missouri communities to tell their story and make available the necessary information to producers who may want to invest.

The Farmers Steering Committee for Ethanol has merged with the already formed new generation cooperative, Mid Missouri Energy. This action took place Wednesday night as both groups met and Mid Missouri Energy officially invited the farmers to become members of Mid Missouri Energy and continue working together for a corn processing ethanol facility in west central Missouri.

The action was no surprise as both groups have continued to meet informally for several months after realizing they had the same goals. “We have all realized this project is bigger than one county,” Ryland Utlaut, Chairman of Mid Missouri Energy, said. “It just makes sense for us to work together rather than separately,” he added. Following the merger, the group elected the following officers: Utlaut as Chairman, Don Arth as Vice-Chairman, Patty Kinder as Secretary and Ron Linneman as Treasurer. Other members of the reorganized Mid Missouri Energy include Dale Griffith, Ed Dysart, Joe Brockmeier, Art Kipping, Mark Casner, Lester Rolf, Jim Wheeler, Ron Gibson, Brian Miles, Dennis Hensiek, and David Swearingin.

Currently underway is Phase B of a Feasibility Study being conducted by SJH & Co., Inc., a consulting firm in Boston , Massachusetts . Phase B includes evaluation of sites. Art Kipping and Don Arth chair a site committee and have received site proposals from several communities within the four county corn production hub, Saline, Lafayette, Carroll and Chariton. Specific sites included in the evaluation process include a site near Slater on Highway 240, a site near Marshall on Highway 20, a site outside Lexington near the river and U. S. Highway 24, a site near Norborne and five sites east of Carrollton on U. S. Highway 24. Don Arth explained the group wants to be assured that the site selected will be the most profitable location for an ethanol plant. Interviewing of design/build firms has been taking place as well. As soon as the group reaches the decision for design/build, those engineers will work with SJH consultants in the site reviews.

Harvest is beginning for area farmers, but activity with the ethanol project will continue to progress. Farmers plan to have their business plan and prospectus completed by December so they can be in their equity drive during the winter months.

The Farmers Steering Committee for Ethanol gathered Tuesday night in Carrollton to hear the results of Phase A of a feasibility study conducted by SJH, Inc. out of Boston, Mass. Phase A of the study took an in-depth look at advantages and risks of an ethanol plant in west central Missouri. Jeff Kapell, consultant for SJH, Inc. traveled to Carrollton to present his findings. "The ethanol market and corn production in this region clearly support your group moving forward," Kapell reported.
"Based on those results the farmers concluded the rewards for a farmer-owned ethanol plant are so great, it just makes sense to forge ahead," Committee Chairman Linneman added, stating the decision was unanimous. Lafayette County corn producer, Ryland Utlaut, said "There is tremendous opportunity for the farmer-owner, and I am pleased the farmers decided to take advantage of that."

The committee started meetings early this year and have created considerable interest in a nine to twelve county area for a farmer-owned ethanol plant. Carrollton Area Economic Development Director Patty Kinder has helped coordinate their efforts and been a point of contact for the farmers. The committee was made up of Carroll County farmers for the most part but soon included farmers involved with Mid-Missouri Energy, a group representing six counties, which formed last year to pursue ethanol. Together the two groups have continued to meet and Tuesday night came to a crossroads. "We had a ‘Go, No Go' decision to make," Linneman said, "and I think they made the right decision." The group received a grant award of $198,000 through the Mo. Dept. Of Agriculture's Value-Added program last month for the project. The next steps include moving to Phase B of the feasibility study which will involve evaluation of sites, legal structure, and reviewing process engineers and design/build firms.

Jeff Kapell, consultant for SJH & Co., has scheduled a meeting with The Farmer Steering Committee for Ethanol on July 16, 2002 to present the results of Phase A of the Feasibility Study. Phase A looks at the marketing and competitive advantages and risks of a corn processing ethanol production facility in west central Missouri. Pending a positive report form this phase, the feasibility study will continue with an in-depth site evaluation that is expected to take most of July and August.

The Farmer Steering Committee for Ethanol has been awarded a grant in the amount of $198,000 from the Missouri Agriculture and Small Business Authority. A more formal announcement by Missouri Governor Holden will be forthcoming later this month. The maximum grant through this program is $200,000. The program is designed for agricultural value-added projects. The grant will be used for costs associated with a feasibility and marketing study, business plan, and legal work that lead to a prospectus. The grant funds are conditional upon the successful completion of each step along the way and decisions to continue moving forward.

One component of the grant application was the requirement to submit applications for tax credits with the grant application that total at least half of the amount we were seeking, $100,000 in this case. Responded was quite high and we were very pleased to submit applications for tax credits totaling $200,000. Applicants included: Bank Midwest, $100,000; Carroll County Trust Company, $25,000; Bank 21, $20,000; First National Bank in Carrollton, $20,000; Home Savings & Loan of Norborne, $20,000; Jim Gibson, $5,000; Citizens Bank of Norborne, $5,000; and The Lathrop Bank, $5,000. These proved to be very positive for the grant and we certainly appreciate those responding to the invitation to participate in the project this way and show support.

“We are thrilled,” said Carrollton Area Economic Development Director Patty Kinder. “This is good news, and certainly helps us move forward with this project.” There were 40 applications made for the grant monies. Only 15 were funded at a total of $1.3 million combined.

The final version of Mo. H.B. 1348 included a provision requiring ethanol plants to be at least 51 percent farmer-owned to receive the state ethanol program payments. The Farmer Steering Committee hopes it will prevent venture capitalists from building ethanol plants in Missouri without corn farmer involvement.

Feasibility Study Begins
Phase A of Feasibility Now Underway for West Central Missouri Ethanol Plant
April 15, 2002

The Farmer Steering Committee has already started the initial phase of the feasibility study using farmer donations. This initial phase is expected to be completed in late June or July. This first phase looks at the marketing and competitive advantages and risks of a corn processing ethanol production facility in west central Missouri. Jeff Kapell, consultant, for SJH & Co., Inc. is coordinating the study. Several areas will be carefully examined to determine any competitive advantage for an ethanol production in this particular area of Missouri.

“Who would market our ethanol? Who would market our DDG’s? What happens to supply and demand of corn in this area? Could an area blending station use some of our ethanol? These are the kinds of information needed.” Ron Linneman, Chairman for the Farmer Committee said. “Along with that,” Linneman adds, “what are the risks? What does the possibility of another ethanol plant nearby do to our ability to be successful? There is a whole lot of information critical to our ability to make good decisions with this project, and we want to have it all laid out for us.”

The feasibility study will be followed by an in-depth site evaluation that is expected to take most of July and August. Specific sites in the area will be looked at. “ We have two or three sites in Carroll County to propose, and sites proposals are also expected from other areas within the “hot spot” of corn production,” Kinder said. “The farmers want to know that the site selected is the most profitable place for that plant to be located,” she added.

The committee is hoping to get through all the initial studies by the end of the year. “That’s fairly aggressive, but it’s possible,” Kinder said. This would allow the winter months for fundraising.

Scheduling:
Office Hours: 8-5 M-F
Corn Receiving: 7:30-3:30 M-F
DDG Load Out: 7:30-4 M-F