Animal agriculture provides tremendous economic benefits for Nebraska
COLUMBUS, NE — In 2006, the value of output for Nebraska’s animal
agriculture sector, consisting of livestock and poultry production, was
estimated at more than $7.5 billion, according to Drs. Donis Petersan
and Ken Lemke, economists with the Nebraska Public Power District.
Annually, animal agriculture accounts for billions of dollars in output
value, wages, net farm income, value added (wealth creation) and tax
revenues — and contributes to the economic health of all parts of the
state.
The importance of animal agriculture becomes even more
apparent when one considers its total impacts on Nebraska’s
economy, including direct and secondary economic effects, they said.
For
example, the animal agriculture sector purchases most of the inputs
used in production from other parts of the local economy — everything
from grain, feed and feed supplements to farm equipment and items at
farm supply stores. Plus dollars go to veterinarians, financial and
insurance services and electric utilities and other energy providers,
as well as numerous other local businesses.
“Because this sector
purchases the greatest share of its input requirements locally, it has
very substantial indirect and total impacts on local economies
throughout Nebraska, both in the metropolitan areas and throughout the
other communities and the rural areas of the state,” Petersan said.
“When the total economic impacts associated with the animal agriculture
sector are accounted for, including direct and secondary economic
effects, the value of economic output associated with this sector is
estimated to be $13.2 billion.”
Lemke added that the total
(direct and secondary) employment associated with the animal
agriculture sector is estimated to be more than 76,600 jobs, mostly in
rural communities and rural areas.
This review of the animal
agriculture sector demonstrates that Nebraska’s livestock production
has an enormous impact on Nebraska’s economy in terms of job creation,
wealth creation and total economic activity, the economists said.
Not
included in the economists’ figures are the forward linkages to the
value-added meat and food processing industry, which is the largest
segment of Nebraska manufacturing activity.
“With such a
tremendously positive reverberating impact on the state’s economy, it
makes sense to support responsible growth of the animal agriculture
sector in Nebraska,” Petersan and Lemke said. “The Alliance for the
Future of Agriculture in Nebraska is important because it helps make it
happen.”
A-FAN is a non-profit agriculture promotion, education
and producer assistance organization. It was formed in 2006 by Nebraska
producer organizations to support the expansion of responsible
livestock production across the state. Farmers, ranchers and
communities interested in learning more about the services provided by
A-FAN are encouraged to visit www.A-FAN.org or call toll free
1.888.580.AFAN (1.888.580.2326).
NPPD's mission is to safely
generate and deliver low-cost reliable energy and provide outstanding
customer service. Working in partnership with the state's rural public
power districts, cooperatives and municipalities, NPPD helps serve an
estimated 1 million Nebraskans with retail or wholesale electric power
and energy-related products and services.
NOTE: To view Donis Petersan’s and Ken Lemke’s commentary about the livestock industry’s economic impact on the state of Nebraska, click here.
Media: For more information, contact Ken Lemke at 402.563.5535 or Roger Berry of A-FAN at 402.710.1110 or 888.580.2326