BioFuels Journal

Nebraska Corn Board: Ethanol Provides Not Only Clean Fuel, But Also Jobs, Taxes, and Economic Activity for Rural Communities

Linclon, NE—Ethanol means more to Nebraska and the United States as a whole than reducing the dependence on foreign oil or making a clean burning, renewable fuel available to everyone.

“It’s about small town diners, grocery stores, schools, libraries and churches,” said Don Hutchens, executive director of the Nebraska Corn Board.

“Ethanol, by being produced across rural Nebraska and rural America, benefits all of these community-based businesses and groups.

"It does this by generating economic activity and taxes, which touches nearly every business, school and organization in town.”

According to an economic analysis, the 12 operating ethanol plants in Nebraska in 2006 generated $18.0 million in tax revenues, added more than $1.3 billion in economic output and contributed nearly $100 million in household income.

As of Aug. 1 this year, there were 22 ethanol plants operating in the state – with the capacity to produce 1.6 billion gallons per year, which is more than double the amount produced two years ago.

“That also means the economic impact of the ethanol industry today is considerably higher than in 2006,” said Todd Sneller, administrator of the Nebraska Ethanol Board.

A 2008 study by LECG LLC reported that an average 100 million gallon ethanol plant directly employs 50 people and supports hundreds of additional jobs locally and across the country.

The plant also buys more than $100 million in goods and services, mostly from the local area, and increases household income some $77 million.

“Ethanol has brought thousands of jobs to mostly rural Nebraska, which creates wealth that flows into rural communities,” Sneller said.

“Nebraska ethanol production is more than a $4 billion industry – and it’s getting bigger each year.”

Sneller estimated that by the end of next year, four expansion projects at existing plants and five new projects under construction will add 816 million gallons of capacity, bringing the state’s total ethanol capacity to some 2.4 billion gallons.

Hutchens said the rural development aspect to ethanol should not be overlooked. “Ethanol production is well-suited to smaller communities, places that some people haven’t heard of,” he said.

“Yet we all benefit because of the clean-burning fuel the ethanol plants produce.

"They add to our fuel supply and reduce oil imports, which saves us all money at the pump.”

Studies from analysts at Merrill Lynch to researchers at Iowa State University, have found that ethanol reduces gas prices.

“Depending on the study, those savings are 40-50 cents per gallon, which comes from ethanol adding to our overall fuel supply.

"Take away ethanol and gas prices would soar,” Hutchens said.

“So not only are ethanol plants an important component of rural economic activity, but they provide an economic boost across the country.”

To celebrate ethanol – and all renewable fuels – and what they contribute to Nebraska and the country as a whole, Nebraska Governor Dave Heineman will declare September Renewable Fuels Month at Husker Harvest Days.

The declaration is scheduled for Sept. 10; for more information, contact the Nebraska Corn Board.

For more information, call 800-632-6761.