Agricultural Economics Department


Date of this Version



Published by the Department of Agricultural Economics, University of Nebraska – Lincoln. Copyright 2009 Regents of the University of Nebraska.


The growth of the United States ethanol industry has been quite extensive, especially in Nebraska, where production has grown from 523 million gallons per year in 2005, to 1,115 million gallons per year in 2008 (Nebraska Energy Office, 2009). Rural areas are at an advantage for attracting ethanol plants, as prospective plants want to locate as close as possible to its chief resource - corn. In exchange for locating near its feedstock, ethanol plants offer higher prices in the competition for corn, which in turn has impacted farm income. Surprisingly, little research has been done with regards to an ethanol plant’s impact on farmland values.