Iowa Biodiesel Board

Economic Impacts of Biodiesel in Iowa Bookmark and Share

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 about 305 million gallons of biodiesel in 2017, according to the National Biodiesel Board. That represents about 75 percent of the state's production capacity. 

A study by ABF Economics of 2017 biodiesel production levels shows an increase in economic activity generated by biodiesel production.


  • 3,785 - The number of full-time equivalent jobs in all sectors of the Iowa economy supported by the increase in economic activity generated by biodiesel
  • $456 million – the biodiesel industry’s contribution to Iowa’s GDP 
  • $278 million – amount of household income in Iowa as a result of biodiesel


Studies show biodiesel makes farming more profitable. Informa Economics found biodiesel contributes about 63 cents per bushel of soybeans. But importantly, most of this comes from more value for the soybean oil, which has the effect of:

  • Lowering the price of meal for livestock producers by $21- $42 per metric ton
  • Helping livestock production become more profitable
  • Increasing our available food supply and reducing food prices

View a fact sheet on biodiesel's impact on the livestock industry


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