Indiana’s Ethanol Industry

Indiana’s Ethanol Industry
Created by rrummel on 6/18/2014 2:54:19 PM

Big Dividends for Hoosier Ag Economy

Indiana’sethanol industry continues to be a driving force to the Hoosier economyaccording to a recent study by ABF Economics. The results of the study werereleased June 13 at the Indiana Ethanol Forum in Indianapolis.

“Indiana is oneof the nation’s leading ethanol producers and the ethanol industry is a vibrantcomponent of the Indiana manufacturing sector,” said John Urbanchuk, managingpartner at ABF Economics. “The most significant impact of the ethanol industryfor Indiana is to provide a large, stable base of demand for corn that providesan important source of market-based revenue, increases farmer net worth whilesupporting jobs in all sectors of the Indiana economy.”

The report,funded by the Indiana Corn Marketing Council, updates previous studies on theeconomic impact of Indiana’s ethanol industry, which accounted for $538 millionin gross state product last year, and provides compelling evidence of Indiana’simportance as an ethanol hub.  

“Not only isethanol a key market and economic driver for Hoosier corn farmers, but thisstudy clearly illustrates the significant economic contributions Indiana’sgrowing ethanol industry plays to the state and local communities in terms of jobcreation, tax revenue and economic investment,” said David Howell, ICMC ethanolchair and farmer from Middletown, Ind. “As Indiana’s ethanol industry continuesto grow, it is vital that we continue to assess the impact this key industry ishaving on our state’s economy.”

The study –Contribution of Ethanol to the Economy of Indiana – shows that in 2013Indiana’s ethanol industry supported more than 4,100 full time jobs andgenerated labor income of $232 million. State and local tax coffers alsoreceived $42 million from Indiana’s ethanol industry.

“While ethanolproduction is not a labor-intensive industry, every direct job in ethanolproduction supports six additional Indiana jobs,” said Urbanchuk. “The ethanolindustry also produces valuable co-products in the form of dried distiller’sgrain and distiller’s corn oil that directly benefit livestock and poultryproducers and the Indiana biodiesel industry.”

Indiana is thenation’s sixth largest producer of ethanol, with the state’s 12 operatingethanol plants boasting an annual operating capacity of more than one billiongallons 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.

“Because ethanolis such a key market for Indiana corn farmers, the Indiana Corn MarketingCouncil has invested in this industry since Indiana’s new corn checkoff lawwent into effect seven years ago,” said Ken Parrent, ICMC ethanol director. “Weare now able to look at the impact this industry is having across the state andevaluate the return on that investment as far as economic impact and growth fornot only Hoosier farmers but for the Indiana economy as well.”

In addition tofunding this study, ICMC also has invested in research that has looked at thenext generation of ethanol technologies, specifically corn stover.

“Indianas corn farmers are committed togrowing our statesethanol industry, which not only increases demand for our product but alsogrows the Hoosier economy,” said Dennis Maple, ICMC president and farmer fromGreentown, Ind. “Our statesethanol industry is good for farmers, good for consumers, good for theenvironment and good for Indiana.”

ICMC has alsooffered grants to fuel retailers to encourage new infrastructure to offermid-level ethanol blends for drivers of Flex Fuel Vehicles (FFVs). To date thecorn checkoff has helped fuel retailers add 14 flex fuel pumps across the statethat offer blends from E20 to E85.

A complete copyof the study can be found at

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