The latest economic impact analysis from the Renewable Fuels Association shows the ethanol industry’s contribution to the U.S. economy remained “robust” last year, as record-setting production offset the impact of lower commodity prices.
“2024 was another very good year following on the heels of 2023,” said RFA Chief Economist Scott Richman. “In terms of helping out in terms of what was a somewhat challenging year for growers, ethanol came through again.”
In 2024, the industry directly supported 56,000 U.S. jobs, along with an additional 258,000 indirect and induced jobs across all sectors of the economy. The industry created $28.3 billion in household income, contributed $53 billion to the nation’s gross domestic product, and generated more than $10 billion in tax revenues at the federal, state and local levels. Returns over operating costs averaged an estimated $0.26 per gallon, 40 percent lower than the average operating margin in 2023.
Richman says the report is especially significant this year as the increasing access to E15 ethanol blended gasoline nationwide, year-round is being seriously considered as a way to help the farm economy. “How much we contribute to the economy of rural America is vital right now,” said Richman.
In this interview, Richman also talks about record ethanol exports in 2024 and what might happen with the export market with President Trump’s intention to place reciprocal tariffs on Brazilian ethanol in reaction to Brazil’s 18 percent tariff on U.S. ethanol.
RFA economist Scott Richman (12:15)
