Heartland Institute report claims RFS damages economies in the corn belt

In Utah, researchers from Utah States University and Strata Policy have released a report for the Heartland Institute that examines the history and impact of government subsidies for the corn ethanol industry on the U.S. economy as a whole and also on specific “corn belt” counties. They are primarily concerned with the impact of the Renewable Fuel Standard (RFS) following its implementation in 2005. By looking at both local and national economies before and after implementation of the RFS they found that not only is the RFS bad for the overall U.S. economy, but also for the very counties expected to benefit most. Understanding the true costs and benefits of ethanol subsidies like the RFS will allow policy makers to better evaluate the structure and necessity of these policies moving forward.