The U.S. House of Representatives Committee on Small Business held a hearing Thursday on the impact of renewable energy production on rural America.
Among those who testified was Renewable Fuels Association president Bob Dinneen, who told the committee that ethanol production is providing a dramatic economic stimulus in rural America.
“The production of ethanol has sparked new capital investment and economic development in rural communities across America,” said Dinneen. “Farmer-owned ethanol plants account for half of the U.S. fuel ethanol plants and almost 40 percent of industry capacity. In fact, the National Farmers Union recently released the findings of a study they commissioned by the University of Missouri on the concentration of agricultural markets. The study showed an increased concentration in every industry except ethanol production. The study also found that ethanol production is the only agricultural sector in which concentration has steadily decreased.”
Dinneen added that, ccording to RFA’s analysis, a 100 million gallon ethanol facility will generate $406 million for the local economy and increase the size of the state economy by $223 million.