MCGA News Release - Missouri's Investment In Ethanol Pays Huge Dividends 02-07-06

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News Release

FOR IMMEDIATE RELEASE: February 7, 2006

CONTACT: Becky Grisham, Missouri Corn Growers Association, (573) 893-4181

MISSOURI'S INVESTMENT IN ETHANOL PAYS HUGE DIVIDENDS
Independent Study Reinforces Value of Farmer-Owned Industry

(JEFFERSON CITY, Mo.)—Missouri's ethanol industry injects $390 million annually into the state's economy according to a study released today by the University of Missouri-Columbia. Missouri Corn Grower Association (MCGA) grower-leaders joined industry and government experts to hear the results of the statewide ethanol impact study at a press conference held at the Missouri State Capitol.

"This research once again reinforces the tremendous economic benefits that Missouri's farmer-owned ethanol plants convey to our communities and businesses throughout the state," says Gary Marshall, MCGA chief executive officer. "It is gratifying to be able to place a significant value on an industry that has been moving Missouri corn up the value chain while at the same time increasing the vitality of our rural communities."

In addition to the overall economic boost, the study found Missouri's four ethanol plants in Macon, Craig, Malta Bend and Laddonia, Mo., generate the following direct and indirect benefits:

create 2,784 jobs statewide,

produce 437,025 tons of distillers dried grains (DDGs),

generate $31 million in tax revenues each year,

utilize 55 million bushels of corn,

increase value-added income by $178 million.

Also included in the economic analysis was a look at the one-time construction impact experienced when the ethanol industry reaches 350 million gallons. According to the study, the direct and indirect economic boost is estimated to create 13,015 U.S. jobs, $794 million in value-added income and $1.5 billion in total output across the nation.

"It is amazing to see how far this industry has come and the impact it is having on the bottom line of our state," says Terry Hilgedick, farmer from Hartsburg, Mo., and MCGA president. "According to this study, when Missouri ethanol production reaches 350 million gallons, just the day-to-day operations will result in the creation of 5,613 jobs, $63 million in tax revenues and a total net increase of $726 million to Missouri's economy each and every year. This is value-added agriculture at its best."

The in-depth study evaluated direct and indirect benefits of ethanol production in Missouri using actual financial results from the plants and a sophisticated input-output statistical model called IMPLAN. IMPLAN is a standard model used by public and private entities to estimate the additional jobs and economic benefits created by new businesses. For this study, economists used IMPLAN to examine the impact of plant construction and operational revenue generated by ethanol facilities.

To learn more about ethanol and the Missouri Corn Growers Association, call 1-800-827-4181 or visit Missouri Corn Online at www.mocorn.org.

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Executive Summary: Employment and Economic Benefits of Ethanol Production in Missouri (PDF)