Ethanol Expansion Faces Scrutiny Over Emissions and Economic Impact
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By Anya Schmidt | WASHINGTON – 2025/06/14 12:06:26
A new report casts doubt on the benefits of expanding ethanol production, citing increased greenhouse gas emissions and a failure to deliver promised economic advantages to Midwestern communities. The report encompasses Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
According to the report,the expansion of ethanol production isn’t yielding the broad benefits touted by lawmakers and the industry. Instead, a concentration of wealth is occurring. “The benefits from biofuels remain concentrated in the hands of a few,” Leslie-Bole said.
The report further suggests that “as subsidies flow, so may the trend of farmland consolidation, increasing inaccessibility of farmland in the Midwest, and locking out emerging or low-resource farmers. This means the benefits of biofuels production are flowing to fewer people, while more are left bearing the costs.”
Proposed policies, including tax credits and support for biofuel-based aviation fuel, could exacerbate these issues, possibly leading to more land conversion and greenhouse gas emissions. Critics argue that this comes at a time when food demand is rising, and land should be prioritized for food production.
“President Donald Trump’s tax cut bill,passed by the house and currently being negotiated in the Senate,would not only extend tax credits for biofuels producers,it specifically excludes calculations of emissions from land conversion when determining what qualifies as a low-emission fuel.”
Major biofuels industry trade groups, including Growth Energy and the Renewable Fuels association, have not commented on the report’s findings.
though, an employee with the Clean Fuels Alliance america, stated that the report “vastly overstates the carbon emissions from crop-based fuels by comparing the farmed land to natural landscapes, which no longer exist.” The association represents biodiesel and enduring aviation fuel producers, not ethanol.
The Clean Fuels Alliance America also noted that “the impact of soy-based fuels in 2024 was more than $42 billion,providing over 100,000 jobs.”
They added, “Ten percent of the value of every bushel of soybeans is linked to biomass-based fuel.”
Economic Disparities and environmental Concerns
“The benefits from biofuels remain concentrated in the hands of a few,” Leslie-Bole said.
The report raises concerns about the distribution of benefits within the biofuels industry and the potential environmental consequences of further expansion.The debate highlights the complexities of balancing economic interests, environmental sustainability, and food security.
