A new economic contribution study shows Iowa biofuels production has begun to reflect stagnant corn demand throughout the agriculture economy as the multiplying effects of corn and soybean purchases have been reduced due to lower commodity prices.
Decision Innovation Solutions (DIS) conducted the study, commissioned by the Iowa Renewable Fuels Association (IRFA). The study found: “Even though a variety of factors converged in 2024 that created stresses for the biofuels industry in Iowa and lowered the economic contributions of the industry to the Iowa economy compared to prior years, Iowa’s renewable fuels industry set another record for fuel production.” Specifically, biofuels production contributes the following to Iowa:
Accounts for $5.7 billion, or about 2%, of Iowa GDP
Generates $2.6 billion of income for Iowa households; and
Over 34,000 jobs throughout the entire Iowa economy
“Renewable fuels production continues to be a core part of Iowa’s economy,” said IRFA Executive Director Monte Shaw. “Yet, as farmers continue to produce more and domestic demand has leveled off, we saw commodity prices fall. That means the indirect impacts of converting corn and soybeans into renewable fuels also fell. Simply put, Iowa farmers need growing markets. The best way to open new ethanol markets around the world is with carbon capture and sequestration (CCS). That is the most cost-effective and impactful tool we can provide our farmers and producers.”
In 2024, Iowa ethanol plants produced 4.6 billion gallons of ethanol and continues to lead the nation in ethanol production. Iowa biodiesel facilities produced 353 million gallons, up from 350 million gallons in 2023.