By Jamie Martin
The U.S. ethanol industry made significant economic contributions in 2024, with record-breaking production levels driving job growth and rural development.
According to the Renewable Fuels Association (RFA), the sector directly created 56,000 jobs and indirectly supported 258,000 more across various industries.
The industry's total economic impact included $28.3 billion in household income and a $53 billion boost to the nation's GDP. Additionally, ethanol production generated over $10 billion in tax revenues at different government levels.
Despite operating margins being 40% lower than in 2023, producers remained profitable, averaging returns of $0.26 per gallon.
RFA President and CEO Geoff Cooper praised the industry's efforts, stating, "Our nation’s ethanol producers worked overtime in 2024 to set a new production record and ensure American families could enjoy the benefits of a cleaner, lower-cost domestically produced fuel option."
Ethanol exports also saw remarkable growth, reaching a record 1.91 billion gallons, with exports alone accounting for 11% of the industry's employment. Domestic consumption increased slightly, reflecting the sector’s steady demand. The industry spent $30 billion on raw materials, including $23 billion in corn purchases, reinforcing its essential role in supporting farmers.
The RFA report outlined ethanol’s role in strengthening energy security, reducing emissions, and bolstering rural economies.
With increasing adoption of mid- and high-level ethanol blends and future applications like sustainable aviation fuel, the industry is poised for continued expansion.
Photo Credit: shutterstock-dickgage
Categories: National