FOR IMMEDIATE RELEASE
January 31, 2008

Renewable Fuels Power Iowa Economy
New Study Outlines Dramatic Increases in Job Creation and Household Income
as Renewable Fuels Industry Grows

JOHNSTON, IA – The Iowa Renewable Fuels Association (IRFA) today released a new study detailing the dramatic impact the growing renewable fuels industry has on Iowa’s economy.  Biodiesel and ethanol production and construction of new biorefineries is a major force in driving Iowa’s economy forward, especially in rural communities.

“2007 was a year of remarkable challenges and opportunities for the biofuels industry,” said economist John Urbanchuk, a director with LECG, LLC. “Iowa leads the Nation in biofuels output accounting for 31 percent of U.S. ethanol and 20 percent of biodiesel production capacity.”

According to the report, “Contribution of the Biofuels Industry to the Economy of Iowa,” Urbanchuk found that ethanol and biodiesel producers are part of a manufacturing sector that adds substantial value to agricultural commodities produced in Iowa and makes a significant contribution to the Iowa economy. Based on the size of the Iowa renewable fuels industry at year-end 2007, ethanol and biodiesel:

• Add $12.7 billion, or about 10 percent, to Iowa GDP

• Generate $2.9 billion of household income for Iowa households

• Support the creation or retention of more than 96,000 jobs through the entire Iowa economy, and

• Generate nearly $790 million in state tax revenue.

            
“Corn and soybean prices are up,” said IRFA Executive Director Monte Shaw. “Land values are up. Household income is up. State tax revenue is up. The common denominator is renewable fuels. John Urbanchuk’s report paints a dramatic picture of the far-reaching positive impacts of producing biodiesel and ethanol in Iowa. But the best news is that we’re just getting started. The new 36-billon gallon federal renewable fuels standard will drive the industry forward and Iowa will remain front and center.”

For the complete report, click here.