Nebraska Ethanol Industry Thrives with Strong Growth

By Scout Nelson

The Nebraska ethanol and co-products industry remains a vital contributor to the state's economy, according to a recent study by the University of Nebraska–Lincoln. The study, conducted by the university’s Department of Agricultural Economics and Bureau of Business Research in collaboration with the Nebraska Ethanol Board, highlights the economic impact of the industry from 2021 to 2023.

The study reveals that ethanol production in Nebraska has been steady, with production levels at 2.036 billion gallons in 2021, 2.018 billion gallons in 2022, and 2.008 billion gallons in 2023. Despite fluctuations in the broader economy, the ethanol industry’s output continued to thrive, contributing significantly to the state's economic stability. The total value of the industry’s output, including co-products, was $5.7 billion in 2021, $6.9 billion in 2022, and $6 billion in 2023.

The ethanol industry ranks as Nebraska’s third-largest agricultural sector, following corn and cattle, and surpasses soybean production. In terms of value, the ethanol output in Nebraska from 2021-2023 accounted for 68% of corn, 50% of cattle, and 169% of soybeans. This highlights the significant role of ethanol in Nebraska’s agricultural economy.

A notable finding of the study is the contribution of ethanol co-products, such as corn oil and corn syrup, which offset low ethanol prices during the study period. These co-products accounted for 45% of the ethanol industry's total value in 2022 and 2023.

The ethanol industry supports 1,800 full-time jobs across Nebraska, with job creation varying by plant. These jobs, with an average annual salary of about $80,000, are spread across small communities, often in towns with populations of fewer than 1,900 residents.

Overall, the ethanol industry continues to be a major economic driver in Nebraska, contributing billions of dollars and creating thousands of jobs. Its resilience during tough economic times, such as the COVID-19 pandemic and low ethanol prices, ensures that it will remain an essential part of Nebraska’s economy for years to come.

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