Economic contribution of Minnesota’s ethanol industry, 2024

Key findings

• Economic contribution: In 2024, Minnesota’s ethanol industry:
  • Generated an estimated $5.2 billion in economic activity in the state. Of this, $1.2 billion was labor income or income in the pockets of Minnesota residents.
  • Supported employment for 18,434 people.
  • Contributed $2.1 billion to Minnesota’s gross domestic product (GDP).
• Benefiting industries: Ethanol production highly benefited wholesale trade (for example, local farmers’ cooperatives), crop production, and real estate.
• Tax contribution: Generated an estimated $157.6 million in state and local tax collections. This includes property, sales, and income taxes, along with other taxes and fees.
• Ethanol production: Minnesota ethanol plants produced 1,401.3 million gallons of ethanol in 2024, a 3.5 percent increase from 2023. For comparison, average weekly Midwest ethanol production was 996,000 barrels per day, up 2.8 percent from the prior year (U.S. Energy Information Administration).
• Revenues and expenditures: On average, Minnesota’s ethanol plants posted net returns of $0.41 per gallon of ethanol, an increase from $0.31 per gallon the previous year.
  • Overall, revenues per gallon declined to $2.41.
  • Prices for ethanol, and its two co-products of dried distillers’ Grain (DDGS) and corn oil, were generally lower in 2024 than in 2023 (U.S. Department of Agriculture).
• Ethanol’s co-products — Ethanol plants produce fuel (ethanol), protein for animal feed (DDGS), and distillers’ corn oil.
  • Minnesota’s 2024 DDGS supply of 4.13 million tons could support more than 2 million head of cattle, 2.5 million pigs, and 61.9 million turkeys and chickens.
  • An estimated 463.8 million pounds of corn oil. If all of Minnesota’s 2024 distillers’ corn oil had been used in biodiesel production, it would have generated 60.2 million gallons of biodiesel. This represents 70 percent of Minnesota's 85.5 million gallons of biodiesel production capacity.

About this report

In 2024, 18 plants produced ethanol in Minnesota. Ethanol production in the state stems from long-standing, private-public partnerships aimed at adding value to Minnesota-grown corn. To demonstrate the economic value of ethanol production, the Minnesota Bio-Fuels Association partnered with University of Minnesota Extension on an economic contribution study. 

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