Date: July 8, 2008

To:  Eyota MinnErgy Ethanol Task Force

From:  Olmsted County Concerned Citizens (OC3)

The information provided by the EDA Director Steve Grunseth provides anecdotal information about the impact of the corn ethanol plants in Preston and Claremont from the perspective of local officials and realtors.  A brief review of 2000 census data and 2006 demographic estimates from the Minnesota State Demographer for towns with ethanol plants show another story; populations of small towns with corn-ethanol plants decline in population.  Contrary to the EDA suggestions that growth would occur in Eyota the census data leads to a conclusion that corn-ethanol is not so good for local population growth.

If we first look at Eyota the official 2000 census showed a population of 1,644 people and the July 2006 estimate showed 1,738 people, an increase of 5.7% in six years.  Eyota’s growth appears to be from new home building for residents who commute to Rochester for employment.  The strong growth is evidence of a strong economic base and the desirability of Eyota as a hometown.

If we look at the same data from the 16 communities that have corn-ethanol plants we find only 9 towns had corn- ethanol refineries operational from before the 2000 census to the present.  The table below shows eight of the nine corn-ethanol towns suffered a decline in population while one town gained 4 residents for a gain of 0.1%.

This analysis shows that of the three corn-ethanol towns of similar size, Preston, Winnebago and Winthrop the 2000-2006 population loss averaged 5.8%.

This raises the question of Eyota’s relative success and begs the question of why Eyota should add a risk factor like a new corn-ethanol plant?