2024 Iowa Renewable Fuels Economic Contribution Study Shows Impact of Stagnant Corn Demand Hitting Agriculture Economy

(Iowa Renewable Fuels Association) Access to New Markets to Grow Demand Require Carbon Capture and Sequestration -- According to a new economic contribution study released today (May 6, 2025), Iowa biofuels production has begun to reflect stagnant corn demand throughout the agriculture economy. The direct impacts of biofuels still remain strong, but the multiplying effects of corn and soybean purchases have been reduced as commodity prices fell.

Decision Innovation Solutions (DIS) conducted the study, commissioned by the Iowa Renewable Fuels Association (IRFA). The study found: “Even though a variety of factors converged in 2024 that created stresses for the biofuels industry in Iowa and lowered the economic contributions of the industry to the Iowa economy compared to prior years, Iowa’s renewable fuels industry set another record for fuel production.” Specifically, biofuels production contributes the following to Iowa:

“Renewable fuels production continues to be a core part of Iowa’s economy,” said IRFA Executive Director Monte Shaw. “Yet, as farmers continue to produce more and domestic demand has leveled off, we saw commodity prices fall. That means the indirect impacts of converting corn and soybeans into renewable fuels also fell. Simply put, Iowa farmers need growing markets. The best way to open new ethanol markets around the world is with carbon capture and sequestration (CCS). That is the most cost-effective and impactful tool we can provide our farmers and producers.”

In 2024, Iowa ethanol plants produced 4.6 billion gallons of ethanol and continues to lead the nation in ethanol production. Iowa biodiesel facilities produced 353 million gallons, up from 350 million gallons in 2023.

“Over the last couple of years, we have been warning of the coming economic storm in agriculture,” said Shaw. “In fact, as corn and soybean prices fell, American farmers lost $90 billion in net income over the last two years. Production has been steady in Iowa, but the impact of $7 corn is just bigger than $3.50 corn. Today’s study highlights why Iowa legislators need to stand up for Iowa farmers and renewable fuels producers’ ability to gain access to the massive ultra-low carbon markets before things get worse for farmers and our state economy.”

The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 42 ethanol refineries capable of producing 4.7 billion gallons annually – including 34 million gallons of annual cellulosic ethanol production capacity – and 10 biodiesel facilities with the capacity to produce 416 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org. READ MORE