Ethanol provides a vital value-added market for corn and other commodities, providing an economic boost to rural America.  Demand created by ethanol production increases the price a farmer receives for grain.  An increasing number of farmers are joining together in cooperatives to build ethanol production facilities - thereby directly taking advantage of the value-added market through ownership.

FACT: Ethanol production utilized the starch in 2.3 billion bushels of corn in 2007.

The industry processed 18% of the domestic corn crop into ethanol and valuable feed co-products.


Corn Utilized in Ethanol Production



Source: National Corn Growers Association/RFA


FACT: By increasing the demand for corn, and thus raising corn prices, ethanol helps to lower federal farm program costs.

In a January 2007 statement, the USDA Chief Economist stated that farm program payments were expected to be reduced by some $6 billion due to the higher value of a bushel of corn.

FACT: A modern dry-mill ethanol refinery produces approximately 2.8 gallons of ethanol and 17 pounds of highly valuable feed coproducts called distillers grains from one bushel of corn.

In 2007, ethanol biorefineries produced approximately 14.6 million metric tons of distillers grains.  The U.S. exports distillers dried grains with solubles mainly to Ireland, the UK, Europe, Mexico and Canada. Click here for more information on co-products.

FACT: Ethanol production does not reduce the amount of food available for human consumption.

Ethanol is produced from field corn fed to livestock, not sweet corn fed to humans. Importantly, ethanol production utilizes only the starch portion of the corn kernel, which is abundant and of low value. The remaining vitamins, minerals, protein and fiber are sold as high-value livestock feed.

An increasing amount of ethanol is produced from nontraditional feedstocks such as waste products from the beverage, food and forestry industries. In the very near future we will also produce ethanol from agricultural residues such as rice straw, sugar cane bagasse and corn stover, municipal solid waste, and energy crops such as switchgrass. Click here for more information.