IRFA: Biofuels continue to have positive impact on Iowa's economy

February 2, 2021

BY Iowa Renewable Fuels Association

A new study released today finds biofuels continue to have a significant positive impact on Iowa’s economy, but recent market challenges reduced the job and household income impacts of ethanol and biodiesel production in the state.

The study, authored by John Urbanchuk of ABF Economics and commissioned by the Iowa Renewable Fuels Association (IRFA), found the production of ethanol and biodiesel accounts for nearly $4 billion in state GDP, supports 37,000 direct and indirect jobs, and boosts Iowa household income by $1.8 billion. All three metrics are down 20 to 25 percent compared to 2019. 

Advertisement

“Biofuels still provide a major boost to Iowa’s economy, but quite frankly, the report is a wake-up call to redouble our efforts at the state level,” said IRFA Executive Director Monte Shaw. “Midwestern states like Iowa must be aggressive to drive local demand for biofuels in a meaningful way, thereby providing a sturdy market foundation, even as we supply the rest of the United States and markets around the world. IRFA will continue to work with Gov. Kim Reynolds and the Iowa Legislature to improve our biofuels policies and programs.”

In 2020 Iowa biodiesel production increased slightly, but the COVID-19 pandemic, trade disputes, and Renewable Fuel Standard exemption abuse led to ethanol production decreasing by half a billion gallons compared to the previous year.

“The renewable fuels industry continues to make a significant contribution to the Iowa economy in terms of job creation, household earnings, and state and local tax revenue,” stated Urbanchuk. “Further, policy and regulatory actions taken by Iowa, and other Midwestern states, to boost the use of biofuels locally will provide a buffer from the uncertainty of federal policy and export demand. By creating a larger and more stable local demand situation, Iowa can greatly enlarge the latent economic benefits of biofuels production represented by the more than 800 million gallons of unutilized ethanol production capacity and 50 million gallons of unutilized biodiesel production capacity. Putting this existing manufacturing infrastructure to work would greatly increase the GDP, household income and job benefits related to Iowa biofuels production.”

Advertisement

To view the full study, click here.

 

 

Related Stories

The USDA significantly increased its estimate for 2025-’26 soybean oil use in biofuel production in its latest World Agricultural Supply and Demand Estimates report, released July 11. The outlook for soybean production was revised down.

Read More

The U.S. Energy Information Administration maintained its forecast for 2025 and 2026 biodiesel, renewable diesel and sustainable aviation fuel (SAF) production in its latest Short-Term Energy Outlook, released July 8.

Read More

XCF Global Inc. on July 10 shared its strategic plan to invest close to $1 billion in developing a network of SAF production facilities, expanding its U.S. footprint, and advancing its international growth strategy.

Read More

U.S. fuel ethanol capacity fell slightly in April, while biodiesel and renewable diesel capacity held steady, according to data released by the U.S. EIA on June 30. Feedstock consumption was down when compared to the previous month.

Read More

XCF Global Inc. on July 8 provided a production update on its flagship New Rise Reno facility, underscoring that the plant has successfully produced SAF, renewable diesel, and renewable naphtha during its initial ramp-up.

Read More

Upcoming Events

Sign up for our e-newsletter!

Advertisement

Advertisement