Study: Biofuels could boost farm income by $13B (Research Triangle Park)

A joint study by researchers at RTI International in Research Triangle Park and at Texas A&M University have determined that new federal renewable-fuel mandates could lead to more than $13 billion in additional farm income but also produce higher costs for food.

The study, funded by the U.S. Environmental Protection Agency, analyzed the economic impact of the new fuel standards that the federal government has mandated be met by 2022. The standards require that at least 36 billion gallons of the transportation fuel sold in the United States come from renewable resources, such as ethanol and biofuels made from switchgrass, corn and other starches. The standards, which are referred to as RFS2, are designed to reduce the country’s dependence on foreign oil and to reduce greenhouse gas emissions.

Based on the calculations, food costs would increase by an average of $10 per person annually by 2022, according to the report.

Read the full report in the Triangle Business Journal.