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Rapid expansion of the biofuel industry provides exciting opportunities for economic growth and development in rural Nebraska. Realizing the full benefits of this opportunity and ensuring its long‐term viability depends on continued access to adequate supplies of water, electrical energy, and biofuel feedstock crops at reasonable cost. For example, about 70 percent of all corn and 50 percent of soybeans produced in Nebraska comes from irrigated land, and electrical energy for pumping irrigation water represents a major component of peak‐load energy demand in the state. Reducing this peak‐load electrical demand and consumption is essential for reducing the need for new generating capacity or peak‐load energy purchases, thus avoiding increased costs for power. Similarly, increasing water use efficiency of irrigated crops reduces energy demand for irrigation and decreases water withdrawals to produce adequate feedstock supply, which conserves water resources.