IRFA Study Finds Biodiesel Increases IA Farmer Income by Nearly $1.5 Billion
Date Posted: February 14, 2013
Johnston, IA—A recently released study highlights biodiesel’s impact on commodity prices, and the results when extrapolated statewide show that biodiesel increases Iowa farmer income by nearly $1.5 billion.
The study, conducted by Cardno ENTRIX Economist John Urbanchuk, quantifies how biodiesel production boosts revenue for Iowa’s crop and livestock farmers.
This study was commissioned by the Iowa Renewable Fuels Association (IRFA), Iowa Soybean Association (ISA), Iowa Corn Growers Association (ICGA), and Iowa Biodiesel Board (IBB).
“Without a viable biodiesel industry, the entire Iowa agriculture sector would suffer reduced profitability and lost revenue,” stated Urbanchuk.
Based on 2011 crop and livestock production:
Commodity ... Price Increase Due to Biodiesel ... 2011 Commodity Numbers ... 2011 Totals (in millions)
Soybeans ... $1.04 ($/bu) ... 466 million bushels ... $ 484.6
Corn ... $0.33 ($/bu) ... 2.36 billion bushels ... $ 778.8
Cattle ... $15.75 ($/hd) ... 2.39 million head ... $ 37.6
Hogs ... $4.05 ($/hd) ... 38.7 million head ... $ 156.7
Total Impact Statewide ... $1.46 Billion
“The study’s focus was on individual farming operations, but when you take those numbers and apply them statewide it paints a powerful picture of the impact of biodiesel on agriculture in Iowa,” stated IRFA Communications Director T.J. Page.
“It’s easy to see how the biodiesel industry is able to add more than $391 million to Iowa’s GDP, while creating nearly 5,000 direct and indirect jobs in the state.”
Iowa farmers should visit MoreBforMe.com and sign up to request “More B for Me,” and be entered for a chance to win $1,000 towards the purchase of biodiesel just in time for spring planting.
To view the entire biodiesel study, click here.
For a fact sheet on the biodiesel study, click here.
To view the annual economic impact study, click here.
For more information, call 515-252-6249.