As you read this newsletter the 2025 harvest is nearly complete. Overall corn yields were good but variable. With excess water and hail this summer the low end was less than 100 bushels per acre to the high end of 260 bushels per acre. The crop came in dryer with average test weight. Good quality corn is very good for our ethanol production. With the above average corn crop across the country, it is great to have CVEC. Without CVEC, think of what the price of corn would be. CVEC is good for farmers, employees, our communities and all us shareholders.
CVEC had a good year. The first half of the year showed lower margins but the last half has been good margins. With our great management and diversification along with our outside investments we had a profitable 2025.
In paying dividends this fall, management and the Board will look at several factors of which some include cash on hand, K-1 tax statement estimates, near term projects, audit results, budget projections for next year as well as where we see the industry going. The final decision will be made at the November board meeting.
As we look to the future there are a lot of opportunities for our industry. It is great that CVEC is diversified with fuel, industrial and organic grade alcohol, corn oil, and distiller grains. We are now starting to generate additional revenue from projects like corn kernel fiber. Finding ways to lower our Carbon Index (CI) score is a big deal to capture tax credits and revenue from 45Z, etc. There are additional markets paying more for lower CI scores as well. We are also looking atprojects to lower our energy cost and CI through new boilers and adding steam turbines. Solar is still on the table but the right programs and prices need to come together to move forward. We are also focused on expanding gallons at our site in Benson. More information to come at the annual meeting on Thursday, January 22, 2026 at McKinney’s in Benson.
Thanks to our Team at CVEC, the plant has run very well this year. We have one of the best management teams, staff and board in the country.