By Cole Lauterbach/Illinois Radio Network

SPRINGFIELD – With U.S. ethanol exports increasing by 26 percent between 2015 and 2016, Illinois corn farmers might see an economic boost this year. 

Exports play a crucial role in the U.S. agriculture industry. Products sold overseas help the U.S. balance of trade and adds money and potential growth to the U.S. economy, according to Mike Doherty, a senior economist with the Illinois Farm Bureau. 

The growth in ethanol exports last year helped increase profits and returns on investments for ethanol plants in Illinois and brought optimism back to the Illinois corn market. Such exports are an example of the market’s ability to offer a competitive product in the international marketplace, Doherty said. 

“When those ethanol exports increased, that increased the demand by ethanol plants for buying Illinois corn,” Doherty said. 

Brazil, Canada, China, India, the Philippines and Mexico receive the bulk of U.S. ethanol exports, according to Doherty. 

“What it contributes to the U.S. and Illinois economy — the value of those exports to all the countries combined – was a little over $2 billion, which is the third highest on record,” according to Doherty. 

With such a strong showing in ethanol exports last year and in January of this year, corn farmers in Illinois might expand their corn acreage, he said. 

“Illinois farmers will respond to the price signals that are part of the global marketplace for corn and for soybeans,” Doherty said. 

The United States is a major exporter of ethanol, but we also import ethanol from places like Brazil that have ethanol made from sugarcane, according to Doherty. Last year we imported 34 million gallons of ethanol while exporting 1.05 billion gallons, Doherty said. 

“The 34 million gallons we imported, that’s only about a quarter of one of our many ethanol plants’ annual output,” Doherty said. 

Overall, ethanol exports are expected to remain strong this year, according to Doherty.