U.S. ethanol production rose 2% in 2025 from 2024 and climbed 8% from the prior 5-year average, driven by high corn production, increased production efficiency and strong international demand.
Class I ethanol rail movements were up 1% from 2024 and up 10% from the 5-year average as a result of the production increases. Of total ethanol production, 68% shipped by rail from the Midwest.
Of Midwest-originated rail movements of fuel ethanol, 42% went to the East Coast district, 28% to the Gulf Coast district, 18% to the West Coast district, 2% to the Rocky Mountain district, 5% to Canada and 5% to elsewhere in the Midwest district.
Exports surge on blending mandates
At 2.18 billion gallons, 2025 ethanol exports were up 13% from 2024 and up 52% from the 5-year average, largely because of strong sales to countries with domestic ethanol blending mandates. Exports accounted for 15% of total demand for U.S. ethanol in 2025.
Sales to the top five buyers—Canada, the Netherlands, India, the United Kingdom and Colombia—accounted for 76% of total U.S. ethanol exports. From 2024 to 2025, ethanol-export volumes to three of the top five buyers rose: the Netherlands, up 160%; Canada, up 14%; and India, up 4%.
Canada accounted for 36% of total U.S. ethanol exports in 2025 at 792 million gallons, and the Netherlands accounted for 17%, up from just 7% in 2024.
A U.S.-UK trade agreement finalized in May 2025 eliminated the UK's 19% import tariff on U.S. ethanol through an annual 370-million-gallon import quota. Despite the agreement, U.S. exports to the UK were just over 177 million gallons in 2025, down 27% from 2024 but up 66% from the prior 5-year average.
Port of Houston dominates exports
The Port of Houston handled 52% of exports by volume in 2025, up 4 percentage points from 2024, because of rising volumes to India and the Netherlands. The Port of Detroit's share rose because of strong purchases by Canada, while the Port of New Orleans's share fell 4 percentage points because of lower exports to the UK.
U.S. ethanol exports are expected to reach a record-high $4.7 billion in fiscal year 2026, up 2% from the FY 2025 total. The U.S. Energy Information Administration expects U.S. ethanol exports to remain near record highs in 2026 at 150 million barrels per day, up from 140 million barrels per day in 2025.
