A recent analysis has highlighted that the growth of ethanol production not only exacerbates greenhouse gas emissions but also fails to deliver the anticipated economic and social advantages to communities in the Midwest. The report categorizes the Midwest as comprising Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
According to Leslie-Bole, a key contributor to the report, “The benefits from biofuels remain concentrated in the hands of a few.” She points out that persistent subsidies could lead to a further trend of farmland consolidation, making it increasingly difficult for emerging and low-resource farmers to access land. Consequently, while a select few benefit from biofuel production, many others are left to shoulder the associated costs.
Proposed legislative measures at both state and federal levels, which include increased tax credits and support for biofuel-based aviation fuel, could lead to a rise in production. This might result in greater land conversion and a further spike in greenhouse gas emissions, thereby deepening the divide between rural communities and affluent agribusinesses at a time when the demand for food is surging. Critics argue that available land should prioritize food production instead.
The tax reform bill proposed by President Donald Trump, which has passed the House and is under negotiation in the Senate, aims to extend tax credits for biofuel producers. Notably, it would exclude emissions from land conversion in its criteria for defining low-emission fuels.
Key trade organizations within the biofuels sector, including Growth Energy and the Renewable Fuels Association, have not responded to inquiries from Inside Climate News seeking comments or interviews.
A representative from the Clean Fuels Alliance America, which advocates for producers of biodiesel and sustainable aviation fuel—distinct from ethanol—argued that the report significantly overestimates the carbon footprint of crop-based fuels by contrasting farmed land with natural landscapes that no longer exist.
Additionally, they reported that the soy-based fuels sector had a significant economic impact in 2024, generating over $42 billion and supporting more than 100,000 jobs. “Ten percent of the value of every bushel of soybeans is linked to biomass-based fuel,” they remarked.
