A look at a U.S. county map of population change from 2000 to 2005 reveals that most non-metro - or rural - counties grew at a slower rate than the national average. Half of all these places lost population. In Nebraska, 84 percent (56 out of 67) of the counties of under 10,000 residents lost population. Kansas lost 28,392 in non-metro population, Iowa 21,697, Illinois 18,673 and North Dakota 17,866. Almost all the farm communities in the Midwest experienced similar population stagnation or loss. According to Bob Dinneen, president of the Renewable Fuels Association, ethanol is now revitalizing many of these rural communities - and not just in the Midwest.

There are already about 100 U.S. ethanol plants in operation, up from 50 in 1999, and 78 more are under construction, reports Dinneen. They range from Texas and California to New York and Florida. They use corn, sorghum, soybeans and other crops to produce ethanol. Development of practical cellulosic ethanol production plants (from switch grass, corn stalks, municipal solid waste and other sources) is underway. “I’ve had the privilege of going out to grand openings of several ethanol plants,” says Dinneen. “Standing in front of 1,000 farmers who have invested in these plants; the excitement is palpable.” These farmers benefit in three ways: They get profits from the ethanol sales, higher prices for crops and the acreage they own becomes more valuable. In Iowa, land prices have risen about 60 percent during the 2000’s, according to a report from Iowa State economist Mike Duffy. Compare that with Iowa single-family house prices, which have risen only about 4.5 percent a year over that period, according to the Office of Federal Housing Enterprise Oversight figures.

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