June is Dairy Month, and Nebraska Public Power District (NPPD) is proud to be part of the Grow Nebraska Dairy Team.
The Nebraska Department of Agriculture, the Nebraska Department of Economic Development (DED), the Alliance for the Future of Agriculture in Nebraska (A-FAN), Nebraska Extension, and the Nebraska State Dairy Association (NSDA) are all partners with NPPD in this endeavor to support the growth and expansion of new and existing dairy production and processing facilities in Nebraska.
For dairy processors in particular, Nebraska possesses the infrastructure, supply and workforce to be an ideal location for expansions. Nebraska is the only state that generates electricity entirely by publicly-owned power systems, and that power is among the most cost- effective and reliable in the nation. According to the Energy Information Administration and the Nebraska Department of Environment and Energy, Nebraska ranked in the top 15 states in price per kilowatt-hour, nearly 20% lower than the national average. This helps reduce costs and allows processors to take advantage of the other inherent benefits Nebraska has for the dairy industry.
Nearly two million pounds of milk are shipped out of the state every single day, and surveys have shown that more than 70% of Nebraska dairies with more than 500 cows are willing and interested in expanding their herds. Many dairies located in western Nebraska send their milk east along I-80, driving right past many premier sites that could house a processor. A dozen Nebraska communities are openly seeking dairy processing facilities, and nearly half of those have shovel-ready and available sites.
Nebraska’s established food processing industry helps provide a ready-made workforce for dairy processors. Companies with Nebraska-based processing facilities include Costco, Tyson, Hormel, JBS, Smithfield, Kellogg’s and Conagra, which means there is a pipeline of skilled labor. The Food Processing Center (FPC) dairy plant at the University of Nebraska-Lincoln, helps turn out some of the most work-ready food science graduates in America. A large reason these students come out ready to contribute from day one is their experience with the lab services the FPC provides to companies. With a litany of tests, including microbiology, food screens, pathogen testing and many others, the FPC helps Nebraska companies ensure they are bringing safe food products to the market while exposing students to the real questions and challenges they will face in their careers.
Dairy producers looking to expand their operations into Nebraska will find an agriculture-centered environment ripe for development. Fifty-one of the state’s 93 counties have gone through the process to be classified a Livestock Friendly County by the Nebraska Department of Agriculture, showing their desire and commitment to being a prime location for producers and processors alike. And these counties have the workforce to back up that commitment, with five of Nebraska’s 10 largest cities located within a Livestock Friendly County.
Nebraska is ranked in the top 10 states by Forbes in business cost, regulatory environment, and overall states for business. The ImagiNE tax incentive program provides wage and investment tax credit for qualifying projects. Some projects also can classify as Sales/Use and Property Tax Exempt. Visit imagine.nebraska.gov for the most current information regarding the ImagiNE program.
This business climate, when coupled with the sites, work force and natural resources available, means the dairy producers and processors alike can find a home in Nebraska.
If you are interested in learning more about NPPD’s role on the Grow Nebraska Dairy team, contact Economic Development Consultant Brian Vasa at bkvasa@nppd.com or call 308-284-8820.