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 $2.6 billion of income for Iowa households; and
- Supported nearly 46,000 jobs through the entire Iowa economy.
| GDP | Income | Employment | |
| (Mil 2021$) | (Mil 2021$) | (Jobs) | |
| Ethanol* | $3,967 | $2,199 | 39,401 |
| Biodiesel | $1,223 | $450 | 6,513 |
| Total | $5,190 | $2,648 | 45,913 |
*Includes agriculture, investment in R&D, and exports