USDA: Bioproducts ‘support US rural economy’ with $393bn contribution

A new report by the US Department of Agriculture (USDA) shows that in 2014, the biobased products industry contributed $393 billion (€350bn) and 4.2 million jobs to US economy.

The Economic Impact Analysis of the US Biobased Products Industry also indicates that the sector grew from 2013 to 2014, creating or supporting an additional 220,000 jobs and $24 billion over that period.

This report is the second of its kind by USDA, and it analyses revenue and jobs created by the biobased products industry at the national and state level in 2014.

Agriculture Secretary Tom Vilsack, who has identified the biobased economy as one of the four pillars that support US rural economy, said he was “thrilled” to see the biosector is “not just holding strong, but growing”.

"As this sector is strengthening, so is the economy in rural America, where this year the unemployment rate dropped below 6% for the first time since 2007. USDA is proud to see such strong returns on our investment into the biobased products industry," Vilsack said.

In addition to their contribution to the rural economy, innovative biobased materials also have key environmental benefits, including reducing the use of fossil fuels and reduced associated greenhouse gas (GHG) emissions.

The production and use of biobased products replacing petroleum-based products had the potential to reduce GHG emissions up to 10 million tonnes of CO₂ equivalents in 2014.

The increased use of biobased products currently displaces about 300 million gallons of petroleum per year, the equivalent to taking 200,000 cars off the road.