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FAIRMONT, Minn. (AP) BioFuel Energy started production at a southern Minnesota ethanol plant this week, even as another company decided to delay operations at its new plants.

BioFuel Energy Corporation's plant in Fairmont is running at 50 percent capacity, just as management had planned. The plant will grind 50,000 bushels of Corn a day for the next couple of weeks before expanding to full capacity.

VeraSun Energy Corp. said earlier this week that it would delay the opening of its new ethanol plants in the southern Minnesota town of Welcome and one in northern Iowa.

A VeraSun spokesman said the move was prompted by market conditions, including the high price of corn, the key ingredient in ethanol.

The manager of the BioFuels plant says the company bought the majority of its corn several months ago, when the price was lower.

On the Net: BioFuel Energy Corp.: http://www.bfenergy.com/ VeraSun Energy Corp.: http://www.verasun.com/ Information from: Sentinel, http://www.fairmontsentinel.com (Copyright 2008 by The Associated Press. All Rights Reserved.) APNP 06-20-08 1144CDT | save this article / add to your favorites list