Study: Iowa biofuel production contributed over $5 billion to state economy in 2019

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A new study released today concludes that despite challenges last year, Iowa biofuel production continues to have a significant impact on Iowa’s economy, supporting over 48,000 jobs and more than $2.4 billion in household income. The study, authored by John Urbanchuk of ABF Economics and commissioned by the Iowa Renewable Fuels Association, also found that biofuels continue to account for over $5 billion of Iowa’s GDP, or about 3%. The study looked at the many challenges the industry faced in 2019, including the lapsed biodiesel tax credit and the reduced demand caused by Renewable Fuel Standard refinery exemptions. The study found Iowa biofuels production could have supported over 4,000 more jobs and $200 million more in household income in 2019 had the exemptions not been granted. Industry average ethanol margins fell an estimated 7.3% for 2019. Returns over operating costs averaged 17 cents per gallon in 2019, or 7 cents per gallon below 2018 levels.