The Impact of Agriculture on Nebraska

Nebraska is built upon agriculture. It is no surprise that this number one industry in the state has a huge economic impact. Figure 1 below from American Farm Bureau shows how much of each state’s economy comes from the agriculture and food industry. This map is based off data from the Feeding the Economy Report. Nationwide food and agriculture are responsible for 20% of U.S.economic impact and over 48 million jobs.

Nebraska and Iowa hold first place for largest percentage share of a state’s economy at 44%. This is a huge percentage. This means when agriculture is impacted nearly half of Nebraska’s economy is impacted. The report goes on to detail jobs, wages and taxes from agriculture that make up that 44%. The report estimates that around 545,929 jobs and $38.19 billion in wages are from food and agriculture in Nebraska. These figures include direct economic impact, supplier economic impact and induced economic impact.  Business taxes contribute over $21.9 billion dollars into Nebraska’s economy. Of these taxes roughly almost $13 billion is in federal taxes and almost $9 billion is in state taxes.

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When crop prices are low or producers’ margins are tight, state growth may slow down. But when agriculture is supported and profit margins are widening growth and innovation are guaranteed. These figures are incredibly important when determining how to build a better future as a state. With nearly half a million jobs impacted by agriculture, this industry is vital to so many families and communities. Supporting this industry and allowing ample room for growth is necessary for Nebraska’s families, growth, and prosperity.

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