Nebraska ethanol and co-product industry remains an important and stable force that contributes billions of dollars to the state economy, according to a new study by the University of Nebraska-Linkan.
The study analyzes the economic impact of the industry from 2021-2023 and was organized by the Department of Agriculture Economics and Bureau of Business Research in partnership with the Nebraska Ethanol Board. This suggests that the economic production of the industry compares the state’s overall economic production, other AG areas and non-AG economic drivers. The positive impact of the Nebraska ethanol and co-product industry spreads across the state, directly between 2021 and 2023 creates 1,800 jobs at an average annual salary of about $ 80,000.
The study found that the production of ethanol in Nebraska has remained stable despite rapid rash in the general economy. In 2020, overall ethanol production was 1.847 billion gallons. In 2021, 2022 and 2023, ethanol production was a total of 2.036 billion, 2.018 billion and 2.008 billion gallons respectively. With the value of added co-products, the total value of industry production was in each year of study: $ 5.699 billion (2021), $ 6.932 billion (2022) and $ 6.031 billion (2023).
The ethanol industry continues to rank as the third largest agricultural sector in the state, leaving only corn and cattle behind in terms of agricultural production, and is far ahead of soybean production. Overall, since 2021â2023, the value of ethanol production in Nebraska was equal to 68% corn, 50% cattle and 169% soybean.
The production of co-products of ethanol helped offset low ethanol prices during the period included in the study. In addition to the growing markets for distillers grains over the years, products such as corn oil, corn syrup and hand sanitizer contributed to the total co-product production that was 45% of the ethanol value in both 2022 and 2023.
Eric Thompson, Carl H. “For each dollar ethanol, 45 cents were produced and sold,” Nelson Professor and Chairman of Economics and Director of Bureau of Business Research, Eric Thompson. “Evidence suggests that the value of the ethanol industry Nebraska is an important part of the enhanced agricultural sector.”
The new ethanol industry for this year’s study was compared to the overall Nebraska economy. In 2022, the economic impact responsible for the ethanol industry was $ 8.18 billion. The same year, Nebraska’s annual GDP was $ 167.5 billion. To keep it in perspective, the report compares the ethanol industry with the overall economic impact of the college world series, which was $ 88 million in 2019, growing up to $ 115 million in 2024. The overall economic impact of the ethanol industry exceeds 50 times the total 2024 of the college world series.
Ethanol and co-product production between 2021 and 2023 were directly responsible for equal to 1,800 full-time jobs. These jobs were spread across the state, on an average in 75 jobs per plant. During this period, the minimum number of jobs made directly by an ethanol plant was 27, with a maximum of 430. For reference, half of the plants included in the study are in cities with less than 1,900 inhabitants.
According to modeling technology, studies used to determine indirect economic activity, ethanol industry in 2022 is responsible for creating 7,162 additional jobs across the state and another $ 1.255 billion economic activity.
It is not surprising that ethanol plants are general economic activity driver in the state, Tim Mayor, Associate Professor of Practice in the Department of Agriculture Economics and one of the researchers on studies.
The Mayor said, “Given the ability of the low ethanol prices and the ability of the industry after the production complications during Kovid -19, it is our opinion that ethanol will remain a major driver of economic impact for the extended period of time,” the mayor said. “It provides stable employment and provides billions of dollars and overall Nebrasca for small communities across the state.”
Full report of study is available Department of Agriculture Economics,
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