Kevin Herlotz (202) 720-4623
Jim Brownlee (202) 720-2091

USDA APPROVES $12.5 MILLION GUARANTEED LOAN FOR CONSTRUCTION OF IOWA ETHANOL FACILITY

     WASHINGTON, June 22, 2001 – USDA Secretary Ann M. Veneman today announced the approval of a $12.5 million loan guarantee for the construction of an 18 million gallon per year ethanol production facility, to be built in Galva, Iowa.

     The construction of this ethanol fuel facility is important to helping increase ethanol capacity and in developing renewable energy resources,” said Veneman. “Upon completion, this project will open new markets for our farmers, bring new forms of energy to the American consumer, and help to meet the growing demand for alternative energy sources.

     In May of 2001, President Bush unveiled his national energy policy, which included a greater reliance on alternative and renewable energy sources, including the use of biofuels and biomass energy sources.

     The loan recipient, Quad County Corn Processors’ Cooperative, has 416 members who have contributed some $8.5 million in equity capital toward the construction project. Members will provide, through a corn delivery agreement, a predetermined number of bushels of corn per year to the cooperative.

     The Galva plant will require 6.8 million bushels of corn annually. Private consulting firms, Iowa State University and Stearns Bank, the primary lender, conducted extensive feasibility research.

     Construction of the Galva plant is expected to be completed by January 2002 and will create 16 new jobs.

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