And, while the economic activity created by the ethanol industry rippled throughout the economy, it generated $30 billion in final demand between 1996 and 2000. .
Increases in ethanol production offer enormous potential for economic growth in small rural communities. The industry creates more than 55,000 jobs nationally in ethanol production and related industry and services. The USDA has estimated that a 100 million gallon ethanol plant could create 2,250 local jobs. Farmers benefit because ethanol production provides consistent demand for surplus corn and improves corn prices. Many states have economic incentives as well to encourage the development of the ethanol industry. Some offer state tax incentives for ethanol blends, or financial incentives, or a combination of both. Each dollar's worth of up-stream and on-farm economic activity (attributable to ethanol production) generates $3.20 in downstream economic stimulus. Industrial corn use, which includes ethanol and sweetener production, is now the second largest consumer of corn in America. Each $1 of up-stream and on-farm economic activity generates $3.20 in downstream.
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Economic stimulus attributable to ethanol processing, compared to just $0.31 when corn is exported. Ethanol production consumed 535 million bushels of corn in 1994 (5.3% of the record 10 billion bushel corn crop). About 667 million bushels of corn were used for ethanol in 2001. The demand for corn created by the ethanol industry increases crop values -- accounting for approximately $0.14 of the value of every bushel of corn sold, or $ 1.4 billion. If the market for ethanol did not exist, corn stocks would rise and net income to American corn farmers would be reduced by $6 billion over the next five years, or about 11 %. Many farmers now own and operate ethanol plants, allowing them to add value to their own corn. Domestic ethanol production reduces demand for imported oil and imported MTBE which drains our economy (oil and MTBE imports now represent almost 35% of the U.
