Agriculture’s Contribution to Nebraska Economy

Production agriculture and food-related industries are responsible for 44% of Nebraska’s economic output, tying Iowa as the most agriculturally dependent state in the U.S. The agriculture and food sectors in Nebraska also contribute around 546,000 jobs and $38.19 billion in wages. The estimates come from the Feeding the Economy Report released by the American Farm Bureau Federation in March. Nationwide, the agriculture and food sectors support nearly 49 million jobs, or roughly 30% of total U.S. employment.

The Feeding the Economy Report captures the contributions of all facets of agriculture and food production and distribution. First, it includes direct economic activity related to farms, ranches, and food-related industries, including manufacturing, wholesaling and retail where agricultural products are processed, distributed, and sold. Second, it captures the industries that supply inputs, like equipment manufacturers, fertilizer producers, transportation providers, and financial services. Finally, it analyzes how wages earned throughout the supply chain are spent in local economies, supporting restaurants, health care, housing, and other services. Capturing all these impacts, the study found food and agriculture are responsible for 20% of the country’s economic output.

Figure 1. Food & Agriculture Share of the Economy

The study is another in a long line of analyses which highlight the importance of agriculture to Nebraska. Abygail Peterson, economist for Nebraska Farm Bureau, capture agriculture’s role well when she said, “With nearly half a million jobs impacted by agriculture, this industry is vital to so many families and communities.” As such, it is important to see the sector continue to grow and prosper. Doing so will boost Nebraska’s economic growth and prosperity.