Friday, February 1, 2008

Ethanol Plants Adding Economic Benefits

Ethanol Across America Food vs Fuel EconomyAccording to a new report released by the Ethanol Across America Education Campaign, U.S. ethanol production facilities are generating hundreds of millions of dollars to local, state, and federal governments through direct and indirect economic generation.

The Economic Impacts of Ethanol Production, the latest in the ongoing series of the Ethanol Across America Issue Brief Reports, chronicles the impacts of these facilities through case studies and examination of existing studies. With 26 states now hosts to ethanol facilities, the total of state income taxes and property taxes was more than $2.2 billion in 2006 and is estimated to approach $3 billion by 2008.
“These are substantial sums that result directly from these facilities,” said U.S. Senator Ben Nelson (D-NE), Co-Chairman of the Ethanol Across America campaign. “When indirect and induced jobs are considered, along with capital spending and investment, the ethanol industry is adding more than $40 billion of gross output to the U.S. economy. These are monies that are being returned to our local communities and providing improved public services” said Senator Nelson.
The report looked at the impact of ethanol facilities at the local level and cited numerous case studies where the benefits have been quantifiable. In addition to the direct benefits of tax generation, the report looks at the ripple effect of these facilities, including the role ethanol has played in reducing gasoline prices. The displacement of imported oil alone is adding billions of dollars to the buying power of U.S. consumers and is estimated to reduce the U.S. trade deficit by $13 Billion annually.

The increased value received by farmers for corn is estimated by the U.S. Department of Agriculture to reduce federal farm subsidies by nearly $1 billion over the next seven years.
”We are keeping U.S. dollars at home—plain and simple” said U.S. Senator Tim Johnson (D-SD), another member of the Ethanol Across American Advisory Board. “We are increasing net farm receipts, reducing federal farm subsidies, and lowering gasoline prices by expanding the overall fuel supply. And, we are doing this with little if any impact on food prices.”
The report looks at the success story of ethanol in states such as Iowa, South Dakota, Missouri and Nebraska. Economists examined the local impacts of a prospective 100 MGPY plant in a typical community in Nebraska and found that among the many financial benefits from such a facility, the local income in the host community, including the jobs created and property income, is nearly $10 million per year. The total annual value of outputs from such a project is just under $200 million per year, which includes the ethanol and the distillers feed grains produced.
“No matter how we look at these numbers, the story continues to be a positive one,” said Senator Nelson. “We are revitalizing rural America and producing feed, food, and fuel. We look forward to more of these benefits as we enter into the next phase of ethanol development.”
Source: Clean Fuels Development Coalition, Ethanol Across America

Subscribe to updates by Email

AddThis Social Bookmark Button

Food and Fuel

Good and Balanced Food and Fuel News!

No comments: