Iogen needs straw for ethanol plant

[fjlip]

Iogen reps are signing up straw for a proposed ethanol plant in Melfort. Anyone else sign up acres? They need 300,000 tonnes per year, paying $15-$20/ tonne. They prefer wheat straw. Is this contract farmer friendly? It has lots of conditions. Web site is www.iogen.ca

[skhadenuf]

Is it Melfort or is the plant at P.A. the old pulp mill site?

[fjlip]

That's right, it's PA. Went to website after I posted. The straw purchase agreement only states proposed in Sk.

[brian99]

$15 doesn't cover baling and hauling, let alone the fertilizer replacement cost of the lost nutrient

[johndeere1]

$20 a tonne would be about $10 a bale. Then you probably have to pay the trucking? A farmer would go broke pretty quick in my opinion.

[Gerald_sk]

This is the second round. They stop in last week. I told them
the straw was too valuable. Maybe the last time about
10 years ago I was interested, but plant genetics and straw
management has made straw a non-issue.

[Wheatking]

When they came around our area the deal was as certain dollar amount/tonne(can't remember off the to of my head) and they would do all the baling and hauling(big squares). If I recall correctly it paid for the fertilizer removed and a little bit more. I think at the time they where planning on putting it in birch hills.

Not really sure what to think of the idea, wheat is probably the one of the smaller crops in the area, would probably have better luck getting acres with barley.