Ethanol Production Incentive

The Ethanol Production Incentive provides qualified ethanol producers with quarterly payments based on production volume during times when ethanol prices are unusually low or corn prices are unusually high. The incentive amount is based on the average North Dakota wholesale ethanol price for the preceding quarter and the average North Dakota corn price for the preceding quarter. Qualified facilities include ethanol production facilities constructed after July 31, 2003. Ethanol production facilities in operation before July 1, 1995, are eligible to receive incentive payments if their production increases by 10 million gallons or by 50% of production capacity, whichever is less, during any 12-month period.

The total cumulative incentive available to all eligible producers in any single year is $1.6 million. A single eligible facility may not receive payments for longer than 10 years or more than $10 million in incentive payments over the life of the facility. For more information, see the North Dakota Department of Commerce Ethanol Production Incentive website.

(Reference North Dakota Century Code 17-02)