Ethanol industry facing falling prices

INDIANAPOLIS (AP) - Midwest ethanol producers are facing falling prices, a tight credit market and possible overbuilding -- which raises questions about whether the industry is in a temporary slump or a severe downturn.

The Indianapolis Star reports that problems have caused some ethanol producers to see shrinking profits and falling stock prices. Other companies have scrapped projects.

Mark Walters is the director of biofuels programs for the Indiana Corn Marketing Council. He says there's a little bit of a shakeout going on, but that's to be expected. He says the industry is just maturing.

Indiana now has 11 ethanol plants.