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life in rural nebraska

New ethanol report touts future opportunity

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The GI Independent provides good coverage on a new study out on the future of the industry (note: the study was commissioned by the Renewable Fuels Association).  The report finds that the US is on pace to meet the 36 billion gallon renewable fuels mandate by 2022.  Some snippets on ethanol’s impact:

— Add nearly $1.23 trillion to real gross domestic product by 2022.
— Support as many as 1.18 million jobs in all sectors of the economy.
— Displace the equivalent of nearly 11 billion barrels of crude oil between 2009 and 2022.

— Increase federal tax revenues by nearly $223 billion between 2009 and 2022, while state and local tax revenues will increase $167.2 billion.

What remains to be seen is whether the volatility in the industry has calmed down or not.  Based on the nature of the markets even today, I’d say we have a little way to go.  Looking at the sales tax receipts in Valley County, the impact of ethanol has been significantly positive.  Hopefully this week or early next, we’ll have more info from the state on overall receipts after the bankruptcy.  State reports are delayed 2 months, so we’ll have an idea on December’s totals soon – and what the impact of the ethanol volitilty has been locally.

You can read November’s numbers in our report here.

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Written by Caleb

February 24, 2009 at 4:10 pm

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