South Dakota’s leadership in production and adoption of agricultural biofuels

Abstract

South Dakota is first in the percentage of corn used and fourth in total ethanol production in the US. Its ethanol plants produced more than 550 million gallons of fuel in 2006 and is expected to develop the capacity to produce 843 million gallons. To encourage ethanol use, South Dakota has reduced state taxes on ethanol-blended gasoline at the pump. While reducing the need for imported oil, this development revitalizes the rural economy.