The Nebraska ethanol and co-products industry plays a pivotal role in the state’s economy, contributing billions annually, as revealed by a recent study from the University of Nebraska-Lincoln. Conducted by the Department of Agricultural Economics alongside the Nebraska Ethanol Board, the study highlights the industry’s robust economic framework between 2021 and 2023, directly creating 1,800 jobs with an average salary near £80,000.
Steady ethanol production has persisted despite economic fluctuations, with figures reaching 1.847 billion gallons in 2020 and 2.036, 2.018, and 2.008 billion gallons in 2021, 2022, and 2023 respectively. The total output value was strikingly high, recorded as $5.699 billion in 2021, escalating to $6.932 billion in 2022, before slightly decreasing to $6.031 billion in 2023.
Ethanol remains Nebraska’s third-largest agricultural sector, trailing only corn and cattle but far exceeding soybeans. The industry’s value compared to other sectors showcases its significance, with ethanol output equating to 68% of corn and 50% of cattle’s value from 2021-2023. Co-products such as corn oil and syrup cushioned low ethanol prices, reflecting 45% of the ethanol value in the last two years.
In 2022, the ethanol industry’s economic impact stood at $8.18 billion, which is substantially greater than other state events like the College World Series, showcasing the industry’s extensive reach. Additionally, each ethanol plant created between 27 to 430 jobs, averaging around 75 per facility across rural towns. The study revealed that ethanol indirectly supports over 7,162 additional jobs and generates $1.255 billion of economic activity.
Overall, researchers are optimistic about the future of the ethanol sector, foreseeing its sustained contribution to Nebraska’s economy despite past challenges. As Tim Meyer states, “Ethanol will continue to be a large driver of economic impact for an extended period.” The full report provided by the university is accessible for deeper insights into these findings.
A recent study from the University of Nebraska–Lincoln reveals the Nebraska ethanol industry significantly boosts the state’s economy, generating billions in economic output and creating 1,800 jobs from 2021 to 2023. With stable production levels and a robust co-products market, ethanol remains the state’s third-largest agricultural sector. The industry’s economic impact is projected to be $8.18 billion in 2022, substantially overshadowing events like the College World Series.
In summary, the Nebraska ethanol industry not only anchors the state’s economy by generating billions and creating thousands of jobs but also showcases resilience amidst fluctuating market conditions. Its capacity to produce both ethanol and valuable co-products strengthens its critical role in Nebraska’s agricultural landscape. As the study indicates, the industry is set to remain a significant economic driver for years to come.
Original Source: news.unl.edu
