Nebraska Economy: Agriculture, Insurance, and the Strip

Nebraska is a smaller state economy, usually ranked in the lower-middle of U.S. states by GDP — the dollar value of everything a place makes and sells in a year. The Nebraska economy is built on agriculture, food processing, insurance, and freight rail, with a major financial services cluster in Omaha and a deep farm and ranch base across the rest of the state.

This is a plain-English tour. For the national picture, see The State of the U.S. Economy and the Economy hub.

How big is the Nebraska economy?

For example, recent state GDP for Nebraska has run around $170 billion, according to the Bureau of Economic Analysis. Population is roughly 2.0 million, per the U.S. Census Bureau. Omaha, Lincoln, and a string of smaller agricultural hubs along Interstate 80 anchor the regional economies.

The biggest industries

Nebraska's industry mix is unusually concentrated in agriculture and finance for a state of its size. The main pillars are:

• Agriculture — Nebraska is consistently a top-five state for cattle, corn, and soybeans, and the largest cash receipts come from beef cattle. The state is one of the few where livestock revenue exceeds crop revenue.
• Food processing — Tyson, Cargill, JBS, and Smithfield all operate large beef and pork processing plants in cities like Grand Island, Lexington, and Crete.
• Insurance and finance — Mutual of Omaha, Berkshire Hathaway (headquartered in Omaha), and a deep base of insurance back offices make finance a surprisingly large part of the Omaha economy.
• Freight rail and logistics — Union Pacific is headquartered in Omaha, and the BNSF mainline runs across the state; Nebraska is one of the most rail-dependent state economies.
• Manufacturing — irrigation equipment (Valmont, Lindsay), construction equipment, and food machinery are all important.
• Healthcare and education — the University of Nebraska Medical Center in Omaha and large university and hospital systems are major employers.

Jobs and wages

Nebraska labor data is published by the Nebraska Department of Labor, with national-level numbers from the Bureau of Labor Statistics. For example, the Nebraska unemployment rate is consistently among the lowest in the country, often a full point below the national average, with Omaha and Lincoln especially tight.

The Nebraska minimum wage is being phased up to $15.00 per hour by 2026 under a 2022 voter-approved law, well above the federal floor of $7.25. Many large employers already pay above that on their own.

Taxes in Nebraska

Nebraska has a graduated state income tax, with the legislature gradually lowering top rates. Most retirement income, including Social Security, is now exempt.

The state sales tax rate is 5.5%, with local add-ons that push the combined rate to about 6.5–7.5% in most cities. State tax forms and rules live at the Nebraska Department of Revenue. You can read more about how sales tax works in our glossary.

Cost of living

Cost of living in Nebraska is below the national average across most of the state. Omaha and Lincoln are both consistently ranked among the most affordable mid-sized metros in the country. The federal government tracks region-specific Consumer Price Index data through the BLS Midwest region, and HUD publishes Fair Market Rents for every county at HUD User.

Omaha and the financial cluster

Omaha punches well above its weight in finance. Berkshire Hathaway, one of the largest holding companies in the world, sits downtown; Mutual of Omaha is one of the largest U.S. insurers; and Union Pacific runs the western half of the U.S. freight rail network from headquarters there. Add a deep base of payment processing and insurance back offices, and Omaha has a financial services footprint more typical of much larger cities.

The Strip and the cattle belt

The "Strip" — the densely irrigated corridor of cropland and feedlots running across central Nebraska — is one of the most productive agricultural regions on Earth. Center-pivot irrigation, much of it pioneered by Valmont and Lindsay, taps the Ogallala Aquifer to grow corn that feeds millions of head of cattle. Beef processing plants line the corridor, and the meatpacking industry remains one of the largest private-sector employers in the state.

Lincoln and the university base

Lincoln, the state capital, is anchored by the University of Nebraska, state government, and a steady tech and software base. The metro is one of the most stable in the country, with low unemployment in almost every economic cycle.

How does the Nebraska economy fit into the national picture?

Nebraska is one of the most agriculture- and trade-exposed economies in the country. Beef, corn, and soybean exports are heavily affected by global trade policy and weather, while the state's strong insurance and rail base helps smooth out commodity cycles.

A note on the numbers

Numbers in this article change every quarter — always check the latest from BEA, BLS, and the Nebraska Department of Revenue for the most current data.