Iowa continues to be a largely rural state dominated by agriculture and associated industries, and is the largest producer of corn in the US. Its strengths in the renewable energy sector are abundant land, specialisation in the intensive production of corn for energy, and a good wind resource, combined with its proximity to manufacturing centres and metropolitan areas with significant energy demand.
Looking into renewable energy policies in Iowa, the report provides four main findings: i) Renewable enrgy generates more development opportunities when connected with rural sectors (e.g. agriculture). ii) Rural areas can be at the cutting edge of innovation in renewable energy. iii) Producing renewable energy through agricultural biomass requires intermediate institutions able to lower transaction costs and co-ordinate collective action. This also reduces the cost of renewable energy. iv) While the production of energy crops has the advantage of reducing potential conflict between energy production and food production, it is currently economically unattractive for most farmers.
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