Journal Article

The impact of the ethanol boom on rural America


Abstract: Since 2005, surging U.S. ethanol production has helped reshape the rural economy. Ethanol production has increased nonfarm activity in many rural communities. Moreover, increased ethanol production contributed to rising crop prices, increased net returns, and a jump in cropland values both nationally and regionally. However, rising crop prices cut livestock revenues by boosting feed costs. As a result, while ethanol proponents tout the benefits emerging from the ethanol industry, opponents rail against its adverse side effects. Although the expanding ethanol industry has made a sizable impact on the rural economy, that impact has not been as large as initially estimated.

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Regional Economic Development

Publication Date: 2009

Issue: Apr

Pages: 65-73