VALUE-ADDED CORNER
Husker Ag LLC
Plainview, Neb.
Type of Business:
Husker Ag LLC, Plainview, Neb., is
a majority producer-controlled ethanol
venture.
Business Objective:
The traditional operating procedure
of ethanol plants for processing dried
distillers grains (DDG) is to mechanically
dry this byproduct (or co-product)
from a 70-percent moisture content
down to 10 percent, and then market it
as livestock feed. This drying process
consumes large amounts of natural gas.
Husker Ag will market its DDG coproduct
as a “modified” product containing
about 55 percent moisture,
thereby reducing the amount of natural
gas consumed and netting a substantial
annual decrease in energy costs. Air
emissions will also be reduced.
Annual Sales:
As a fuel-grade ethanol production
plant, Husker Ag LLC processes 8.5
million bushels of corn annually into
more than 20 million gallons of fuelgrade
ethyl alcohol (ethanol). A secondary
product produced is dried distillers
grains, which are the corn components
that remain after the starch is
converted to ethanol.
Ethanol production is presently in
excess of 25 million gallons per year, an
output which exceeds the facility’s estimated
projections. Co-product revenues
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 producers. Employment
has increased from 30 to 32 employees,
thanks to the development of the new
co-product.
How USDA Helped:
Husker Ag received a $226,850
Value-Added Producer Grant (VAPG)
from USDA Rural Development, which
was matched by Husker Ag. The money
is being used for working capital to further
the development of the valueadded
processes for area corn.
Leader’s comment:
“The USDA Rural Development
grant will allow us to employ a co-products
merchandiser and to supplement
the salaries of the plant maintenance
manager and plant lab manager to proceed
with our distillers grain production,”
says Seth Harder, general manager
for Husker Ag. “This will benefit
area feedlots and member-producers.
Additionally, these funds will help to
purchase corn inventory for production
purposes.
“Feedlots will benefit from the coproduct
produced, as it is an excellent
source of protein and energy for livestock,”
he continues. “The plant will
have the capacity to produce 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 only a wholesale commodity
price for their corn which, in turn, was
shipped out of the immediate area.
Currently, Husker Ag pays an average of
5-to-10 cents per 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 own corn vs. having it
trucked for them, saving on trucking
costs and increasing their income.
Major Challenge/
Opportunity Facing Co-op:
“The biggest challenge facing co-ops
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;
Fred Knievel, board chairman.
Husker Ag LLC
54048 Highway 20
Plainview, Neb. 86879
Phone: (402) 582-4446
E-mail: hapllc@huskerag.com
