The Iowa Renewable Fuels Association (IRFA) has released a new study that shows biofuels are responsible for over $5 billion of Iowa’s GDP, or roughly three percent.
The study, authored by John Urbanchuk of ABF Economics and commissioned by IRFA, also found that biofuels account for over 48,000 Iowa jobs and more than $2.5 billion in Iowa household income.
“The results of this study serve as a great reminder to our state and federal representatives that biofuels continue to be a smart and profitable investment for Iowa,” said IRFA Executive Director Monte Shaw. “However, actions being taken on the federal level, such as the continued use of small-refinery exemptions (SREs) by the EPA that undermine the Renewable Fuel Standard (RFS), can jeopardize the future of Iowa biofuel producers and the many economic benefits they provide for Iowa.”
While the study found the “importance of the biofuels industry to agriculture and rural economies is particularly notable,” the report also found that “policy stability is essential to maximize these benefits. Uncertainty surrounding issues like SREs, tax credit extensions, trade with China, year-around E15 sales, and the RFS reset will impede the ability of the industry to provide these societal benefits.”