| Economic Impacts of Biodiesel in Iowa |
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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.
A study of 2009 biodiesel production levels shows an increase in economic activity generated by biodiesel production supported 2,900 permanent jobs. The industry’s contribution to the state GDP is about $470 million.
STIMULATING LOCAL ECONOMIES
In 2009, Iowa biodiesel production was an estimated 85 million gallons. The economic activity this generated was substantial. The spending associated with biodiesel production also circulates throughout the entire Iowa economy.
BY THE NUMBERS:
- 2,900 – number of permanent jobs in Iowa due to biodiesel production
- $22 million – tax revenue the biodiesel industry generates for Iowa
- $470 million – the biodiesel industry’s contribution to Iowa’s GDP
- $103 million – what the biodiesel industry puts into the pockets of Iowa consumers annually
FARM ECONOMY IMPACT
Higher soybean oil prices lead to higher soybean prices for farmers. Economic analyses show that during the past four marketing years, biodiesel demand for soybean oil has resulted in approximately $2.5 billion of additional net returns to the national soybean production sector.
- That means a soybean farmer in Iowa with 700 acres of soybeans earned an additional $8,000 in net profit in 2008 due to biodiesel’s impact.
