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The impact of the ethanol boom on rural America

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  • Jason Henderson

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.

Suggested Citation

  • Jason Henderson, 2009. "The impact of the ethanol boom on rural America," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Apr, pages 65-73.
    • Handle: RePEc:fip:fedlrd:y:2009:i:apr:p:65-73:n:v.5no.1
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    File URL: http://research.stlouisfed.org/publications/red/2009/01/Henderson.pdf
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