Economic Effects of Biofuel Production on States and Rural Communities

Joe Parcell () and Patrick C. Westhoff

Journal of Agricultural and Applied Economics, 2006, vol. 38, issue 2, 11

Abstract: This study summarizes research on farm-, local-, regional-, and macro-level economic effects of ethanol production. Given current production levels, the ethanol production industry annually employees approximately 3,500 workers, pays out nearly $132 million in worker salaries, generates over $110 million in local taxes, and takes in some $2 billion in government incentive payments. Projections for a 60 million gallon per year ethanol plant indicate an annual increase in corn usage of 21 million bushels, a one-time capitalization of $75 million, an increase in local corn prices between $0.06/bushel and $0.12/bushel, a 54 direct and 210 indirect jobs created, and increase in local tax revenues of $1.2 million, a decrease in federal commodity program outlays of $30 million, and an increase in ethanol production incentives (federal only) of around $30.5 million.

Keywords: Community/Rural/Urban Development; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (9)

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Journal Article: Economic Effects of Biofuel Production on States and Rural Communities (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:joaaec:43774

DOI: 10.22004/ag.econ.43774

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