US ethanol exports — fueled by Nebraska — hit record in 2024, but tariffs pose concern

LINCOLN, Neb. (KLKN) — With the possibility of trade wars on the horizon, it could impact several industries, including ethanol, which just had a record year.

According to the Renewable Fuels Association, the value of the U.S ethanol industry’s exports rose to a peak of $7.5 billion in 2024, fueled by a record 1.91 billion gallons exported.

Nebraska is one of the biggest contributors to those exports.

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Representatives of both the Nebraska Farm Bureau and the Nebraska Ethanol Board said Friday that although we’re the No. 2 ethanol-producing state, we actually don’t use much of it.

We send it elsewhere, but if a trade war were to happen, that could change.

“You can see why the ag sector gets a little nervous and gets a little anxious as we start talking about tariffs and trade,” said Mark McHargue, president of the farm bureau. “That might limit our ability to both sell and buy goods from our some of our neighbors and around the world.”

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Last year, the U.S. shipped ethanol to more than 50 countries.

Mexico is the top destination, so a trade war with that country could have a big impact on Nebraska’s economy.

“As we know, when those markets are open to us as the major exporter, that of course trickles down straight to that farmer, that agricultural producer, who needs it, especially at a time like this,” said Reid Wagner, the executive director of the ethanol board.

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President Donald Trump this week paused his plans for tariffs on Mexico for 30 days, so the ethanol board will use that time to reassess.

“I always like to just to make sure that people know that these trade relationships, especially for a place like Nebraska with a global presence and a global impact, is just so important,” Wagner said.