Billion-Dollar Impact Of Ethanol In Missouri

Missouri ethanol production capacity is expected to reach 500 million gallons in 2008, adding an estimated $1.17 billion to the state’s economy annually, according to a study released by University of Missouri economists.

The study, conducted by MU agricultural economists Vern Pierce, Joe Horner and Ryan Milhollin, accounts for all direct, indirect and induced economic effects of constructing and operating the state’s ethanol production facilities. The new study updates a report released in February 2006.

Currently, Missouri ethanol plants produce about 160 million gallons annually with an estimated economic impact of $522 million to the state and an additional $43 million generated in federal, state and local taxes. When annual ethanol production reaches 500 million gallons, an estimated 177 million bushels of corn would be used to produce the fuel, increasing the value of the state’s corn crop at the farm level by $76 million.