|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 12 biodiesel plants produced 184 million gallons of biodiesel in 2012, accounting for about 17 percent of all U.S. biodiesel.
A study* of 2012 biodiesel production levels shows an increase in economic activity generated by biodiesel production supported almost 5,000 permanent jobs. The industry’s contribution to the state GDP is almost $400 million.
STIMULATING LOCAL ECONOMIES
In 2012, Iowa biodiesel production was an estimated 184 million gallons. The spending associated with biodiesel production also circulates throughout the entire Iowa economy.
BY THE NUMBERS:
- 4,982 - The number of full time equivalent jobs in all sector of the Iowa economy supported by the increase in economic activity generated by biodiesel
- $391 million – the biodiesel industry’s contribution to Iowa’s GDP
- $236.8 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
*LECG, LLC: John M. Urbanchuk. “Importance of the Renewable Fuels Industry to the Economy of Iowa,” prepared for the Iowa Renewable Fuels Association, January 2013.