Ethanol Fuels Iowa Economy
Posted: January 27, 2010
Renewable fuels are the backbone of Iowa’s economy, according to a report released this week by the Iowa Renewable Fuels Association.
The report by economist John Urbanchuk with LECG, says that even as Iowa struggles to emerge from this economic downturn, the production of biodiesel and ethanol is boosting the agriculture sector of Iowa’s economy.
“2009 was a year of recovery for the renewable fuels industry,” said Urbanchuk. “While all of the Iowa ethanol plants idled in 2008 were brought back on line, the biodiesel industry was particularly hard hit during 2009 and the industry outlook is clouded by the failure of Congress to reauthorize the biodiesel excise tax credit that expired on December 31.”
According to the report, “Contribution of the Biofuels Industry to the Economy of Iowa,” Urbanchuk found that ethanol and biodiesel producers are part of a manufacturing sector that adds substantial value to agricultural commodities produced in Iowa and makes a significant contribution to the state’s economy.
* Accounts for nearly $11.5 billion, or about 8 percent, to Iowa GDP
* Generates $2.3 billion of household income for Iowa households
* Supports more than 70,000 jobs through the entire Iowa economy
* Boosts state tax revenue by $532 million.
Bob Parkhurst Said,
January 28, 2010 @ 12:35 am
Renewable fuels are the backbone of Iowa’s economy…
Huh? I’d say the backbone of Iowa’s economy is corn, the feedstock from which those 39 stills make ethanol. That corn is the foundation and backbone of the economy, not what they make from it, whether it’s hogs, HFCS, or ethanol.
Ethanol may add value and is a valuable adjunct, but it’s not the backbone. The framework on which Iowa’s economy is built is the vast fields of corn you see as you drive I-80.