Ethanol Production Impacts U.S. Economy

In his annual report, economist John Urbanchuk detailed the significant economic impact of ethanol production. He says, during 2009, production, construction of new capacity, and R&D supported nearly 400,000 jobs in all sectors of the economy.  It also put an additional $16 billion into the pockets of American consumers. Also, during 2009, the ethanol industry impact on spending for annual operations, ethanol transportation, capital spending for new plants under construction, and R&D spending added $53.3 billion to the nation's Gross Domestic Product.

A significant entry in the annual report is that the production of 10.6 billion gallons of ethanol means that the U.S. needed to import 364 million fewer barrels of oil in 2009 to manufacture gasoline, or roughly the equivalent of 5% of total U.S. crude oil imports. The value of the crude oil displaced by ethanol amounted to $21.3 billion.

Renewable Fuels Association President Bob Dinneen points out that unlike other sectors of the economy, this industry added production, helped Americans keep their jobs, and continued to provide an unparalleled value-added market for farmers across the country.