A study finds record ethanol and biodiesel production in Iowa in 2016 had a significant impact on the state’s economy. The report says renewable fuels supported more than 42-thousand Iowa jobs and generated 2-point-3-billion dollars in household income for Iowans. Study author John Urbanchuk says because the fuels are produced in the state, impacts on the state economy are even more important.
“What makes the industry so important to Iowa is that virtually all of the feed stock that’s used by that industry is produced in the state,” Urbanchuk says. “The economic impact, all the dollars spent on that stuff, circulate back through the Iowa economy. That’s a bit more important for Iowa than it is for some of the other states.”
He says the amount of ethanol that was exported to other countries also helped the state’s economy. “We looked at the volume of export on the U.S. side and figured Iowa’s share of production roughly represents that of the trade and calculated what the impact, coming from trade is,” Urbanchuk says, “and that is not inconsequential. It points out the fact that foreign trade is not only a fairly large component but a growing component of economic activity for Iowa as well.”
Urbanchuk says while ethanol production expanded in Iowa in 2016, biodiesel expansion was even greater. “We saw a very small increase in total U.S. ethanol capacity in 2016,” he says. “Iowa’s capacity also expanded in terms of production capacity and that helped them a little bit as well.”
Iowa’s 43 ethanol plants produced a combined record of 4.1-billion gallons of ethanol last year. The study was by conducted by A-B-F Economics and was commissioned by the Iowa Renewable Fuels Association.
(Radio Iowa)