The Nebraska ethanol industry remains a vital economic force, contributing billions to the state’s economy, according to a recent study by the University of Nebraska-Lincoln. Conducted by the Department of Agricultural Economics and Bureau of Business Research alongside the Nebraska Ethanol Board, it highlights the industry’s stability as it directly creates 1,800 jobs with an impressive annual salary average of about $80,000 from 2021 to 2023, showcasing its positive ripple effect across the state.
Ethanol production levels in Nebraska have remained robust, generating 2.036 billion gallons in 2021, followed closely by 2.018 billion in 2022 and 2.008 billion in 2023, despite broader economic fluctuations. In terms of economic output, the industry realised $5.699 billion in 2021, $6.932 billion in 2022, and $6.031 billion in 2023, underscoring its essential role as the third-largest agricultural sector in the state after corn and cattle.
The production of ethanol co-products, such as corn oil, syrup, and distillers grains, effectively mitigated low prices for ethanol, contributing a significant 45% to the co-products’ production value during 2022 and 2023. Professor Eric Thompson noted, “For every dollar of ethanol produced or sold, 45 cents of co-products were produced and sold,” emphasising the industry’s importance in Nebraska’s agricultural landscape.
In 2022, the ethanol industry’s economic impact soared to $8.18 billion, dwarfed only by Nebraska’s GDP of $167.5 billion. This impact is astoundingly over 50 times that of the College World Series, indicating the ethanol industry’s commanding economic presence. Additionally, ethanol production translated into an equivalent of 1,800 full-time jobs across the state, highlighting its role as a job generator in areas that are often small and rural.
The modelling technique used in the study revealed that the ethanol industry initiates an additional 7,162 jobs and contributes $1.255 billion in economic activity to Nebraska in 2022. Researcher Tim Meyer stated, “Given the industry’s ability to rebound after a period of low ethanol prices… it is our opinion ethanol will continue to be a large driver of economic impact for an extended period of time,” reaffirming the industry’s long-term significance to Nebraska’s economy.
The full report can be accessed via the Department of Agricultural Economics’ website for those eager to dive deeper into its findings.
A recent study from the University of Nebraska-Lincoln reveals the Nebraska ethanol industry’s significant economic contributions, generating billions and creating jobs despite economic fluctuations. It produced 2.036 billion gallons in 2021 and maintained strong output levels through 2023. The industry is the state’s third-largest agricultural sector and is vital for local economies, with research projecting ongoing growth and stability.
The Nebraska ethanol industry remains a powerhouse in the state’s economy, showcasing resilience and growth despite external challenges. With its substantial contributions to job creation, economic output, and the agricultural sector, ethanol production is firmly etching its impact on Nebraska’s economic landscape. The findings of the study underscore the importance of this industry in providing stable employment and supporting local communities across the state.
Original Source: www.thefencepost.com
