ERSKINE, Minn. (AP) Agassiz Energy has announced a delay in plans to build a 115 million dollar ethanol plant near Erskine, Minnesota because of the high cost of Corn and lower prices for ethanol.

Agassiz Energy says it has suspended its 55.8 million dollar equity campaign and postponed its application process with the Securities and Exchange Commission.

President Don Sargeant says with current market conditions the company can't make any money on the ethanol plant. He said About 40 ethanol projects around the country are facing the same reality.

Earlier this week, an ethanol plant in Grafton announced it was halting operations until corn and ethanol prices improve.

Sargeant says money already invested in the Erskine plant will be returned.

He says company officials and investors are counting on pending energy and Farm Bills in Congress to increase renewable fuels incentives and improve market conditions.

(Copyright 2007 by The Associated Press. All Rights Reserved.) APNP 10-13-07 1140CDT | save this article / add to your favorites list