|Economic Impacts of Biodiesel in Iowa|
Biodiesel producers are a vital part of a manufacturing sector that adds substantial value to agricultural commodities produced in Iowa, and makes a significant contribution to the Iowa economy. Iowa’s biodiesel plants produced 227 million gallons of biodiesel in 2014.
A study* of 2014 biodiesel production levels shows an increase in economic activity generated by biodiesel production.
BY THE NUMBERS:
- 4,376- The number of full-time equivalent jobs in all sectors of the Iowa economy supported by the increase in economic activity generated by biodiesel
- $471 million – the biodiesel industry’s contribution to Iowa’s GDP
- $286 million – amount of household income in Iowa as a result of biodiesel
FARM ECONOMY IMPACT
Another study** released in 2013 shows that biodiesel increases Iowa farmer income by nearly $1.5 billion. The study, conducted by Cardno ENTRIX Economist John Urbanchuk, found that without the Iowa biodiesel industry in 2012:
- Iowa soybean prices would have been 8.3 percent lower
- Iowa corn prices would have been 5.4 percent lower
- Iowa beef cattle and hog prices would have been 1 percent lower
*ABF Economics: John M. Urbanchuk. “Importance of the Renewable Fuels Industry to the Economy of Iowa,” prepared for the Iowa Renewable Fuels Association, January 2015.
**Cardno Entrix: John M. Urbanchuk. “Impact of Biodiesel on the Iowa Agriculture Economy,” Prepared for the Iowa Biodiesel Board,
the Iowa Renewable Fuels Association, the Iowa Soybean Association and the Iowa Corn Growers Association, January 2013.