|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 230 million gallons of biodiesel in 2013.
A study* of 2013 biodiesel production levels shows an increase in economic activity generated by biodiesel production supported more than 7,000 permanent jobs.
The spending associated with biodiesel production also circulates throughout the entire Iowa economy.
BY THE NUMBERS:
- 7,100 - The number of full time equivalent jobs in all sector of the Iowa economy supported by the increase in economic activity generated by biodiesel
- $520 million – the biodiesel industry’s contribution to Iowa’s GDP
- $313 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 2014.
**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.