Economy

Ever since its founding more than a century ago, Nebraska has been primarily an agricultural state. In recent decades, however, significant gains have been made by other sectors of the economy, most notably by service industries, manufacturing, and wholesale and retail trade. To a large extent, many of the newer economic activities are based on agriculture, through sales and services to farms and the processing and marketing of farm products. Service industries make up the biggest part of Nebraska's gross domestic product; insurance and telemarketing are major service industries in the state.

Nebraska is one of the principal grain- and livestock-producing areas of the world. The state is endowed with deep, rich soils, a generally favorable climate despite occasional droughts, vast grazing lands, and an abundance of underground water that can be used for irrigation. In irrigated acreage Nebraska is one of the leading states in the nation.

About 95 per cent of the state's total area is in farmland, about equally divided between cropland and grazing land. Farms and ranches are generally large, averaging 856 acres (347 hectares).

Livestock provides well over half of all farm cash receipts. Of greatest value are beef cattle, which are raised in large numbers on eastern diversified farms as well as on western ranches. In feedlot operations and in the marketing of cattle, Nebraska is one of the nation's leading states. It is also a major state in the production and marketing of hogs, virtually all of which are raised in the eastern part of the state, where feed grains are produced in abundance.

Corn, grown primarily in eastern Nebraska, is the state's chief crop, both in quantity and in value. Wheat, grown mainly in the southwestern corner of the state and in most of the panhandle, ranks second. Other major crops include grain sorghum, hay, soybeans, sugar beets, oats, and dry beans.

The largest part of Nebraska's domestice product comes from service industries, the majority of which are in the Lincoln and Omaha areas. Service industry groups include community, business, and personal services, and finance, insurance, and real estate. Also among Nebraska's service industry groups are trade, restaurants, and hotels, and government.

The manufacturing sector of Nebraska's economy is dominated by the processing of agricultural products and the making of farm machinery. There is little diversification.

Food processing is the leading industry. Of primary importance is meat packing, which centers mainly in the Omaha area. Other processing industries include the making of flour, cereals, beet sugar, dairy products, vegetable oils, and animal feeds. Other manufacturing activities include the making of farm machinery, chemicals, metal products, printed materials, electrical machinery, and railway equipment.

The greatest concentration of manufacturing is in the Omaha area, where more than a third of the state's manufacturing establishments are located. Lincoln is also a significant center.

Nebraska's most valuable mineral resource is petroleum, which was discovered in the 1950's in southwestern Nebraska. Sand and gravel and stone are next in importance. Small amounts of natural gas, lime, clays, natural gas liquids, and gemstones are also produced.

During pioneer days Nebraska provided a corridor westward by way of the broad Platte Valley. It provided a route for the Oregon and Mormon trails, the Overland Stage Route, the Pony Express, and the first transcontinental railway and telegraph lines. Today, the entire state is well served by various modes of transportation. The Platte Valley remains the most heavily used route.

Rail and highway systems are best developed in eastern Nebraska, reflecting the greater population density and economic development in that part of the state. Nebraska's only Interstate highway is I-80, which crosses the southern part of the state.

Omaha and Lincoln are the chief centers of commercial aviation. The Missouri River is the only navigable waterway.