Biofuel plants looking at bankruptcy

Reuters is reporting that "about 12 small to midsize biodiesel and ethanol plants have declared bankruptcy in recent months." The bankruptcies come as prices for corn and soy (primary feedstocks for corn ethanol and biodiesel plants) are hitting record highs. In addition, high costs of contruction, tight credit markets, and high costs for transportation are also factors. While smaller companies are hit the hardest, larger firms with "their diversification, efficiency plants, and access to cheap train transportation for distributing ethanol" are better protected from the recent surge in production costs.