A study released this week shows Iowa 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 was commissioned by the Iowa Renewable Fuels Association (IRFA) and conducted by John Urbanchuk of ABF Economics. The outcome showed ethanol and biodiesel production accounts for nearly $4 billion of the states’ Gross Domestic Product (GDP). It also supports an estimated 37,000 direct and indirect jobs and boosts Iowa household income by $1.8 million. All three of these metrics, however, are down 20 to 25 percent compared to 2019. “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,” says 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,” Shaw adds. He says they will continue working with Gov. Kim Reynolds as well as the Iowa legislature to improve policies and programs. In 2020, biodiesel production increased slightly, but the pandemic, trade disputes and the Renewable Fuel Standard (RFS) exemption abuse led to ethanol production decreasing by a half a billion gallons compared to the previous year. The full study can be viewed by following the link included below.
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Link to Renewable Fuels Iowa Economic Impact report: https://iowarfa.org/economicimpactstudy/
