In 2006, the ethanol industry supported the creation of 160,231 jobs in all sectors of the economy, boosting U.S. household income by $6.7 billion. Ethanol industry operations and spending for new construction added $2.7 billion of tax revenue for the Federal government and $2.3 billion for state and local governments. And the combination of spending for annual plant operations and capital spending for new plants under construction added more than $41.1 billion to gross output in the U.S. economy. By increasing the demand for corn, and thus raising corn prices, ethanol helps to lower federal farm program costs. As quoted by the Renewable Fuels Association's 2007 Industry Outlook, "A University of Tennessee study predicted that by producing 25 percent of our nation's transportation fuel from American agricultural products, 'cumulative savings in government payments of $15 billion could occur.' This does not include potential savings in fixed/direct or Conservation Reserve Program (CRP) payments." The benefits to the local community are significant. In fact, plants like the ones planned by NexGen Biofuels will provide the following benefits: A 100 MGY plant will require 36.4 million bushels of corn annually. Feedstocks account for about two-thirds of annual operational spending. If all grain is sourced locally (within a 100-mile radius), a 100 MGY plant will generate $406 million annually for the local economy. When viewed at the State level, a 100 MGY plant will increase GSP (Gross State Output) by $223 million. That is, the State economy will be larger as a result of the operations of the ethanol plant. New jobs are created as a consequence of increased economic activity caused by ethanol production. The increase in gross output (final demand) resulting from ongoing production of a 100 MGY plant will generate nearly 1,600 new jobs within the local economy. Increased economic activity and new jobs results in higher levels of income. The ongoing annual operations of a 100 MGY plant will increase household income by more than $50 million in the local economy. (Source: Renewable Fuels Association www.ethanolrfa.org)