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For years Ohio has been a top consumer of ethanol, and with plans for several production facilities underway, the state appears well-positioned to become a significant supplier of the corn-based fuel.

"We're still pretty optimistic and excited that we're going to see some of these plants break ground this year," said Dwayne Siekman, executive director of the Ohio Corn Growers Association.

Siekman cited four corn-based ethanol facilities that may soon be operating in the state.

Harrison Ethanol in Cadiz will produce 20 million gallons of ethanol annually integrated with a 2,000 head dairy and 10,000 head cattle lot. It is estimated the facility will create 107 new jobs for Harrison County.

Greater Ohio Ethanol in Lima will produce over 50 million gallons of ethanol per year. The company plans to pay a premium on high-fermentable hybrids, which are optimal for ethanol production.

Coshocton Ethanol will produce 50 million gallons of ethanol per year. The company estimates it will use 19 million bushels of Ohio corn annually

Demeter Enterprises, a partnership of Cargill, AS Alliance Holdings and Fagen, recently announced plans for a 100 million gallon-per-year ethanol plant in Fayette County. The company estimates it will use 35 million bushels of corn and produce 315,000 tons of dried distillers grain (DDS) annually.

Siekman said with the high corn yields Ohio has experienced the last few years, the state will be able to support the new ethanol industry.

"The obstacles aren't there," he said. "It's just a matter of time."

But the amount of growth in the industry that the state can sustain is not clear.

"If you ask six experts, you'll probably get seven different answers," said Matt Roberts, an Ohio State University agricultural economist.

Roberts estimated that Ohio could easily support three to four ethanol facilities, but said that couldn't be quantified until production begins. He said an important factor will be whether it’s cheaper to ship ethanol from states with a lower corn basis, or for Ohio plants to produce the fuel using higher-priced, locally-grown corn.

"What's the bigger picture? More farm income driven by higher prices," he said.

Roberts estimated the new facilities would increase the local corn basis by an average of 10 cents.

"At the same time for any livestock producers who can use the DDS, it will allow them to reduce their net costs of feed," he said.

Constance Jackson, OFBF vice president of agricultural ecology, said the ethanol industry will help stabilize Ohio corn prices. She said although states such as Iowa and Nebraska can produce lower-priced corn, Ohio has an advantage in its location.

"Ohio is in an ideal position to supply the eastern United States with ethanol," she said.