Consumer Benefits:

U. S. consumers use more than 15 billion gallons of high performance, cleaner ethanol-blended gasoline each year(USDA). Ethanol is a high octane blending component used by many independent gasoline marketers, helping to keep this important class of trade viable and creating competition for the major oil companies. 

Taxpayer Benefits:

The partial excise tax exemption for ethanol to gasoline marketers saves money. A OFD study has shown that reduced farm program costs and increased income tax revenues offset the cost of the incentive. According to USDA, if ethanol use does not continue to grow, "deficiency payments for corn and other program crops will increase by $580 million for crop year 1998 and $740 million by the year 2000 more than the cost of the tax incentive(NEB). The economic activity attributable to the ethanol industry will generate $3.5 billion in additional income tax revenue over the next five years $ 1 billion more than the cost of the exemption. The U. S. ethanol industry will create a net gain to the taxpayers of almost $4 billion over the next five years(NEB).

Economic Benefits:

More than $3 billion has been invested in 43 ethanol production facilities operating in 20different states across the country. The ethanol industry is responsible for more than 40,000 direct and indirect jobs, creating more than $ 1.3 billion in increased household income annually, and more than $12.6 billion over the next five years. The ethanol industry directly and indirectly adds more than $6 billion to the American economy each year(ACE). The demand for grain created by ethanol production increases net farm income more than $12 billion annually. As the economic activity created by the ethanol industry ripples throughout the economy,it will generate $30 billion in final demand between 1996 and 2000(ACE). Increases in ethanol production offer enormous potential for economic growth in small rural communities. USDA has estimated that a 100 million gallon ethanol plant could create 2,250 local jobs.

Agricultural Benefits:

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 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(USDA). 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 last year, or $ 1.4 billion (USDA). 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 %(USDA). This would effect mostly all farmers in Illinois including my father.

Energy / Trade Benefits:

Domestic ethanol  production reduces demand for imported oil  MTBE which drain our economy oil imports now represent almost 80% of the U. S. trade deficit(ACE). Currently, imported oil accounts for 53% of consumption. Today, ethanol reduces the demand for gasoline and by 98,000 barrels per day. A 98,000 barrels a day replacement of imported oil; would represent a $ 1 .1 billion reduction to our annual trade deficit(ACE). Ethanol production also generates exports of feed co-products, such as corn gluten, further enhancing our balance of trade. Corn gluten exports exceeded $800 million last year, the single largest U.S. export(USDA). Ethanol production is extremely energy efficient, with a positive energy balance of 125%, compared to 85% for gasoline.  Ethanol production is by far the most efficient method of producing liquid transportation fuels however cost of the product is more then traditional gasoline. According to USDA, each Btu used to produce a Btu of gasoline could be used to produce 8 Btus of ethanol.

Environmental Benefits:

10-percent ethanol blends reduce carbon monoxide better than any other reformulated gasoline blend more than 25%(NEB). Ethanol is low in reactivity and high in oxygen content, making it an effective tool in reducing ozone pollution. Ethanol is a safe replacement for toxic octane enhancers in gasoline such as benzene, toluene and xylene(OFD).   Because it is produced from renewable agricultural feedstocks, ethanol reduces greenhouse gas emissions such as Nitrogen Dioxide which is a brown toxic gas(OFD).