Indiana’s Ethanol Industry Created by rrummel on 6/18/2014 2:54:19 PM
Big Dividends for Hoosier Ag Economy
ethanol industry continues to be a driving force to the Hoosier economy
according to a recent study by ABF Economics. The results of the study were
released June 13 at the Indiana Ethanol Forum in Indianapolis.
“Indiana is one
of the nation’s leading ethanol producers and the ethanol industry is a vibrant
component of the Indiana manufacturing sector,” said John Urbanchuk, managing
partner at ABF Economics. “The most significant impact of the ethanol industry
for Indiana is to provide a large, stable base of demand for corn that provides
an important source of market-based revenue, increases farmer net worth while
supporting jobs in all sectors of the Indiana economy.”
funded by the Indiana Corn Marketing Council, updates previous studies on the
economic impact of Indiana’s ethanol industry, which accounted for $538 million
in gross state product last year, and provides compelling evidence of Indiana’s
importance as an ethanol hub.
“Not only is
ethanol a key market and economic driver for Hoosier corn farmers, but this
study clearly illustrates the significant economic contributions Indiana’s
growing ethanol industry plays to the state and local communities in terms of job
creation, tax revenue and economic investment,” said David Howell, ICMC ethanol
chair and farmer from Middletown, Ind. “As Indiana’s ethanol industry continues
to grow, it is vital that we continue to assess the impact this key industry is
having on our state’s economy.”
The study –
Contribution of Ethanol to the Economy of Indiana – shows that in 2013
Indiana’s ethanol industry supported more than 4,100 full time jobs and
generated labor income of $232 million. State and local tax coffers also
received $42 million from Indiana’s ethanol industry.
production is not a labor-intensive industry, every direct job in ethanol
production supports six additional Indiana jobs,” said Urbanchuk. “The ethanol
industry also produces valuable co-products in the form of dried distiller’s
grain and distiller’s corn oil that directly benefit livestock and poultry
producers and the Indiana biodiesel industry.”
Indiana is the
nation’s sixth largest producer of ethanol, with the state’s 12 operating
ethanol plants boasting an annual operating capacity of more than one billion
gallons of ethanol. That’s about 7 percent of the total U.S. capacity.
Indiana’s ethanol production has increased more than 13-fold since 2000.
is such a key market for Indiana corn farmers, the Indiana Corn Marketing
Council has invested in this industry since Indiana’s new corn checkoff law
went into effect seven years ago,” said Ken Parrent, ICMC ethanol director. “We
are now able to look at the impact this industry is having across the state and
evaluate the return on that investment as far as economic impact and growth for
not only Hoosier farmers but for the Indiana economy as well.”
In addition to
funding this study, ICMC also has invested in research that has looked at the
next generation of ethanol technologies, specifically corn stover.
“Indiana’s corn farmers are committed to
growing our state’s
ethanol industry, which not only increases demand for our product but also
grows the Hoosier economy,” said Dennis Maple, ICMC president and farmer from
Greentown, Ind. “Our state’s
ethanol industry is good for farmers, good for consumers, good for the
environment and good for Indiana.”
ICMC has also
offered grants to fuel retailers to encourage new infrastructure to offer
mid-level ethanol blends for drivers of Flex Fuel Vehicles (FFVs). To date the
corn checkoff has helped fuel retailers add 14 flex fuel pumps across the state
that offer blends from E20 to E85.
A complete copy
of the study can be found at www.incorn.org/ethanol.