Tuesday, October 4th 2016
--A new report released today by the U.S. Department of Agriculture (USDA) shows that in 2014, the biobased products industry contributed $393 billion and 4.2 million jobs to America's recovering economy. The report also indicates that the sector grew from 2013 to 2014, creating or supporting an additional 220,000 jobs and $24 billion over that period. Agriculture Secretary Vilsack, who has identified the biobased economy as one of the four pillars that support our country's rural economy, released the report at a luncheon today at the National Press Club in Washington, D.C. This report is the second Economic Impact Analysis of the U.S. Biobased Products Industry released by USDA, and it analyzes revenue and jobs created by the biobased products industry at the national and state level in 2014. USDA released the first report of this kind last year, which analyzed the same information based on 2013 data. The new report shows that the industry directly supported 1.53 million jobs in 2014, with each job in the industry responsible for generating 1.76 jobs in other sectors. In 2013, the industry was found to contribute $369 billion and four million jobs to the U.S. economy. In addition to their contribution to the rural economy, innovative biobased materials also have key environmental benefits including the reduction of 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 metric tons of CO2 equivalents in 2014. These materials are increasingly being used as substitutes for petroleum-based materials, which have been used extensively for many years. An example of this petroleum displacement by a biobased material is the use of natural fibers in packing and insulating materials as an alternative to synthetic foams, such as Styrofoam. 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. Today, USDA's BioPreferred Program, which was created by the 2002 Farm Bill and reauthorized and expanded as part of the 2014 Farm Bill, has an online catalog of more than 15,000 products, of which 2,700 have been certified to carry the USDA Biobased Product label. The USDA BioPreferred Program's purpose is to spur economic development, create new jobs and provide new markets for farm commodities.