The biobased products industry contributed $393 billion and 4.2 million jobs to America's economy in 2014, according to USDA report released Monday. The report indicates the sector grew from 2013 to 2014, creating or supporting an additional 220,000 jobs and $24 billion over that period.

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The biobased products industry contributed $393 billion and 4.2 million jobs to America's economy in 2014, according to USDA report released Monday. (Photo: totophotos/Thinkstock)

"When USDA released the first-ever Economic Impact Analysis of the U.S. Biobased Products Industry last year, we were thrilled to see what a positive impact this sector was having on our economy, and this updated analysis shows that the sector is not just holding strong, but growing," said Agriculture Secretary Tom Vilsack. "America has an appetite for everyday products-including plastic bottles, textiles, cleanings supplies and more-made from renewable sources, and that demand is fueling millions of jobs, bringing manufacturing back to our rural communities, and reducing our nation's carbon footprint. As this sector is strengthening, so is the economy in rural America, where this year the unemployment rate dropped below 6% for the first time since 2007. USDA is proud to see such strong returns on our investment into the biobased products industry."

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. 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.

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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.

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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.

Source: USDA