Renewable Fuels Impact on the Iowa Economy

Contribution of the Renewable Fuels Industry to the Economy of Iowa

By John Urbanchuk, Managing Partner, ABF Economics

February 15, 2022

 Prepared for the Iowa Renewable Fuels Association

Producing a record 4.4 billion gallons of ethanol and 340 million gallons of biodiesel in 2021, Iowa continues to be the nation’s leader in biofuels production and biofuels continue to have a significant impact on Iowa’s economy. The renewable fuels industry recovered substantively in 2021 both in Iowa and the rest of the U.S. Despite the development and spread of new COVID variants during 2021 the economy largely reopened, and consumers responded accordingly.

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Biofuels Positive Impact on Iowa Economy Remains Strong

Based on its size and scope, in 2021 the renewable fuels industry had the following impacts on Iowa’s economy:

  • Accounted for over $5 billion of Iowa GDP;
  • Generated $2.6 billion of income for Iowa households; and
  • Supported nearly 46,000 jobs through the entire Iowa economy.
GDPIncomeEmployment
(Mil 2021$)(Mil 2021$)(Jobs)
  Ethanol*$3,967$2,19939,401
  Biodiesel$1,223$4506,513
Total$5,190$2,64845,913

*Includes agriculture, investment in R&D, and exports