Key findings
- Economic contribution: In 2025, Minnesota’s ethanol industry:
- Generated an estimated $4.9 billion in economic activity in the state. Of this, $975 million was labor income.
- Supported employment for 16,573 people.
- Contributed nearly $2 billion to Minnesota’s gross domestic product (GDP).
- Of the $4.9 billion in economic activity generated, $2.6 billion stemmed directly from ethanol plants. Other businesses throughout the state realized the remaining $2.3 billion in activity.
- Benefiting industries: Ethanol production highly benefited wholesale trade, crop production, and real estate.
- Tax contribution: Generated an estimated $152.9 million in state and local taxes.
- Ethanol’s co-products — In 2025, Minnesota’s ethanol plants produced an estimated 4 million tons of DDGS. Due to its fiber and protein content, DDGS is often fed to livestock for nutrition and to enhance production.
- Minnesota’s 2025 DDGS supply could support approximately 1.8 million head of cattle, 3.5 million pigs, and 60.2 million turkeys and chickens. For context, Minnesota farms have 2.1 million head of cattle, 8.9 million pigs, and 39 million head of turkeys.
- Distillers’ corn oil is the other major co-product made by ethanol plants. In 2025, Minnesota’s ethanol plants produced an estimated 485.6 million pounds of corn oil. The corn oil is primarily used for biodiesel production but is also blended into poultry and swine feed.
If all of Minnesota’s 2025 distillers’ corn oil had been used in biodiesel production, it would have generated 63 million gallons of biodiesel. This represents 77 percent of Minnesota 82 million gallons of biodiesel production capacity.
Ethanol industry in the United States
Following the disruptions of the COVID-19 pandemic, the United States ethanol industry has seen continued production growth. U.S. ethanol production hit 16.4 billion gallons in 2025, representing the fifth year in a row that production increased.
Nationally, ethanol exports set records in 2025. Ethanol producers in the United States exported more than 2.18 billion gallons in 2025, a 13 percent increase compared to 2024. Meanwhile, export markets for DDGS remained strong, but total exports decreased by 4 percent in 2025. Looking forward to 2026, the United States Energy Information Administration expects ethanol production to increase.
About this report
Ethanol production has deep roots in Minnesota. It has provided a critical economic development opportunity for farmers and communities, along with an avenue to add value to a widely grown local crop: corn. Public-private partnerships have helped grow and sustain the industry. To understand the economic value of ethanol production, the Minnesota Bio-Fuels Association partnered with University of Minnesota Extension to conduct an economic contribution study.
Reviewed in 2026