Jacobson: Ethanol Production Critical to Nebraska Ag

July 15, 2022

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by Mike Jacobson (North Platt Telegraph) ... In 2021, approximately 31% of Nebraska’s corn crop was utilized in ethanol plants. Nebraska ranks as the nation’s second largest ethanol producer. The state’s 24 ethanol plants have a total production capacity of more than 2 billion gallons annually. Combined, these plants use more than 750 million bushels of corn per year and produce more than 6 million tons of distillers grains, a high-protein livestock feed. The distillers grains are fed, either wet or dry, to beef cattle, dairy cattle and even fish. Additionally, oil from the process may also be used as livestock feed or further processed and refined to be made into biodiesel.

A new opportunity coming soon to ethanol plants and some landowners across various parts of Nebraska is carbon capture and sequestration (CCS). The federal government is offering a significant tax incentive to decrease the amount of carbon dioxide released into the atmosphere and the symbiosis of ethanol production and the geology beneath Nebraska and surrounding states may reap immense rewards, both economically and ecologically. Additionally, the ethanol produced from plants that participate in a CCS program will be even more competitive in markets with low carbon fuel standards such as California and Oregon.

One cannot deny that ethanol production is a catalyst of symbiosis within Nebraska’s economy. In addition to helping keep stronger prices for corn, ethanol production provides good jobs, contributes to both the food and fuel supply, and importantly, diminishes our reliance on foreign oil. Ethanol, made from Nebraska corn, has become a critical component of Nebraska agriculture.

The past two years, the Nebraska Legislature has supported the ethanol industry through legislation. LB 595 made the ethanol industry equal to other manufacturers in the state for sales taxes assessed on inputs essential to the process. Additionally, LB 650 created the opportunity to geologically sequester carbon in Nebraska. LB 596 was amended into LB 1261 and passed this year, creating a tax incentive for retailers to sell more higher blends of ethanol. As your senator and a lifelong farmer, I am eager to continue supporting Nebraska’s agricultural industries and look for more opportunities to keep Nebraska and its products competitive in the domestic and global marketplace. READ MORE

Study shows Nebraska’s ethanol industry continues to expand: OVERALL ECONOMIC IMPACT OF INDUSTRY IN STATE IS OVER $4.5 BILLION (Nebraska Today)