Despite the challenges of 2019, Iowa biofuel production continued to have a significant impact on Iowa’s economy, supporting over 48,000 jobs and more than $2.4 billion in household income, according to the latest study commissioned by the Iowa Renewable Fuels Association (IRFA).
The study, authored by John Urbanchuk of ABF Economics, also found that biofuels continue to account for over $5 billion of Iowa’s GDP, or about three percent.
The study looked at the many challenges the industry faced in 2019, including the lapsed biodiesel tax credit and the demand destruction caused by excessive Renewable Fuel Standard (RFS) 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.
“We are encouraged to see that despite the hard times and policy uncertainty Iowa producers faced in 2019, the economic benefits are still strong. It is, however, disheartening to know how much greater the benefits could have been to Iowa had EPA not granted over a billion gallons worth of demand-destroying RFS exemptions,” said IRFA Executive Director Monte Shaw.
Looking forward, the study concludes that growth of the biofuels sector “through new technologies and feedstocks” will only serve to enhance the economic impact of the industry, but “policy stability is essential to maximize these benefits. Uncertainty surrounding issues like RFS refinery exemptions, tax credit extensions, and trade with China, will impede the ability of the industry to provide these societal benefits.”