Ethanol Impacts

This study estimates the overall economic impact of the Nebraska ethanol industry in 2020. The study builds on previous reports using a quantitative measure (IMPLAN) as well as a fundamental economic analysis to assess the harder-to-measure outcomes of the industry.

Nebraska's ethanol industry remains important in Nebraska producing 1.85 billion gallons in 2020, resulting in a value of ethanol and coproducts production of $3.433 billion, trailing only corn and cattle. Although the Nebraska ethanol industry has experienced weakened ethanol prices, it has shown resilience through continued expansion in total capacity and diversification of co-products. Nebraska ethanol production peaked in 2019 at 2.253 billion gallons. Due to the COVID-19 pandemic, output fell to 1.847 billion gallons in 2020. Overall, the economic impact of the ethanol industry is estimated at $4.41 billion.

This report is produced in partnership with the Nebraska Ethanol Board and the Department of Agricultural Economics. The authors gratefully acknowledge the funding support of the Nebraska Ethanol Board and their assistance in data collection as well as the assistance from Renewable Fuels Nebraska in data collection.

Highlights

Output, Employment, Labor Income, Indirect Business Taxes (2020)

• Ethanol Production – 1,847 million gallons

• Value of Ethanol Production – $2,252 million

• Total Value – $3,433 million

• Employees – 1,758 full-time equivalents (FTEs)

• Labor Income – $146 million

• Indirect Business Taxes – $13 million

Overall Economic Impact (2020)

• Employment – 8,000 jobs

• Total Labor Income – $496 million

• Total Output – $4,410 million

Economic Impact from Cumulative Investments

• Employment – 678 job-years

• Total Labor Income – $40.9 million

• Total Output – $102.8 million