Economic Effects of Biofuel Production on States and Rural Communities
This study summarizes research on farm-, local-, regional-, and macro-level economic effects of ethanol production. Given current production levels, the ethanol production industry annually employees approximately 3,500 workers, pays out nearly $132 million in worker salaries, generates over $110 million in local taxes, and takes in some $2 billion in government incentive payments. Projections for a 60 million gallon per year ethanol plant indicate an annual increase in corn usage of 21 million bushels, a one-time capitalization of $75 million, an increase in local corn prices between $0.06/bushel and $0.12/bushel, a 54 direct and 210 indirect jobs created, and increase in local tax revenues of $1.2 million, a decrease in federal commodity program outlays of $30 million, and an increase in ethanol production incentives (federal only) of around $30.5 million.
Volume (Year): 38 (2006)
Issue (Month): 02 (August)
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- Swenson, David A., 2005. "Model Economic Analyses: An Economic Impact Assessment of an Ethanol Production Facility in Iowa," Staff General Research Papers Archive 12226, Iowa State University, Department of Economics.
- Gardner, Bruce L., 2003. "Fuel Ethanol Subsidies And Farm Price Support: Boon Or Boondoggle?," Working Papers 28599, University of Maryland, Department of Agricultural and Resource Economics.
- Outlaw, Joe L. & Anderson, David P. & Klose, Steven L. & Richardson, James W. & Herbst, Brian K. & Waller, Mark L. & Raulston, J. Marc & Sneary, Shannon L. & Gill, Robert Chope, II, 2003. "An Economic Examination of Potential Ethanol Production in Texas," Working Papers 42707, Texas A&M University, Agricultural and Food Policy Center.
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