Agriculture in the Nebraska Panhandle

EXTENSION
Know how. Know now.
EC864
Agriculture in the
NEBRASKA PANHANDLE
Jessica J. Johnson, Extension Educator-Agricultural Economics
Gary W. Hergert, Interim Director and Crop Nutrient Specialist
Dipak K. Santra, Alternative Crops Breeding Specialist
Alexander D. Pavlista, Crop Physiologist and Potato Specialist
All at the University of Nebraska–Lincoln Panhandle Research and Extension Center
Characteristics and Trends
of Panhandle Agriculture
Agriculture in the Nebraska Panhandle is a diverse composition of livestock and
crop production. The University of Nebraska–Lincoln Panhandle District consists
of 16 counties in western and north central Nebraska (Figure 1) covering 22,000
square miles and representing about 30 percent of Nebraska’s land area. The
numbers provide a profile of agriculture in this district.
© The Board of Regents of the University of Nebraska. All rights reserved.
30% - Wheat
2% - Sugarbeets
27% - Other Hay
1% - Sunflower
22% - Corn
1% - Alternative Dryland Crops
7% - Alfalfa
<1% - Alternative Irrigated Crops
5% - Dry Beans
<1% - Potato
5% - Proso Millet
Figure 1: Percentage of total crop acreage for each major commodity
in the Panhandle District.
• According to the 2007 Census of Agriculture there are 5,779 farms in this 16-county
district, generating nearly $1.5 billion in market value. Almost 70 percent of the market
value is derived from livestock sales, with the remaining 30 percent from crop sales. • Farms vary greatly in economic size: 22 percent accumulate less than $1,000 in sales,
while 9 percent have sales valued at $500,000 or more. • The average farm size is 2,860 acres.
• The average age of a Panhandle farmer is 58. Eighty-seven percent of producers are male,
99 percent are white, and 61 percent consider
farming their primary occupation. • The average net cash return per farm is $55,774. The District received $41.6 million in government
payments in 2007, with individual farms receiving
an average of $9,803.
• The Conservation Reserve Program (CRP) has
been a significant government program in several
Panhandle counties. Almost 340,000 Panhandle
acres are enrolled in CRP, providing over $13.8
million to contract holders in 2011. Cheyenne and
Kimball counties represent over 40 percent of the
total Panhandle District CRP acres.
Figure 2: The UNL Panhandle District consists of 16 counties
covering 22,000 square miles.
© The Board of Regents of the University of Nebraska. All rights reserved.
Agricultural Resources
The Panhandle’s land and water resources are key to the region’s agricultural
productivity. Land ranges in elevation from over 5,400 feet in the southwest
corner to 3,600 feet along the North Platte River. Seventy-four percent of
the farmland in the district is used for pasture, 24 percent for cropland, and
2 percent for other uses. Temperature and precipitation vary greatly from
north to south and as elevation changes. Average annual precipitation in the
Panhandle ranges from 12 inches in the northern region to over 17 inches in
the southeast corner.
© The Board of Regents of the University of Nebraska. All rights reserved.
LAND VALUES. Farmland values in Nebraska have
been increasing at a rapid rate since the early 2000s. In
2013 the UNL land survey estimated the average value
of farmland in western Nebraska (Banner, Box Butte,
Cheyenne, Dawes, Deuel, Garden, Kimball, Morrill, Scotts
Bluff, Sheridan and Sioux counties) at $715 per acre and
in north central Nebraska (Blaine, Cherry, Grant, Hooker,
and Thomas counties) at $1,055 per acre. The value of
land can be largely attributed to its productivity; land
classes with higher potential profit have greater values. Non-tillable grazing lands have the lowest value, ranging
from $370 per acre in the northwest to $500 per acre
in the north. Center pivot-irrigated land has the highest
value, ranging from $3,115 per acre in the northwest to
$5,225 per acre in the north. The return on investment for
cropland in the northwest is traditionally higher than any
other region in the state. In 2013 irrigated cropland there
returned 4.4 percent and dryland cropland returned 3.5
percent.
source for irrigation can be surface water, ground water
or a combination of both. Irrigated crops include corn,
alfalfa, dry beans, sugarbeets, and potato. Alternative
irrigated crops include less than 10,000 combined acres of
chicory, sunflower, canola, camelina, pea, and grass seed.
DRYLAND PRODUCTION. Over 2.6 million acres or
approximately 77 percent of cropland in the Panhandle
District is planted to dryland crops. Given the semi-arid
climate, most dryland areas practice a two- or three-year
rotation, allowing for a fallow period. The predominant
dryland areas are in the southern tier of Panhandle
counties; however, significant acres are also in Box
Butte and Cherry counties. Winter wheat, proso millet,
sunflower, annual forages, and corn are primary crops
produced in dryland regions. Dryland alternative crops
currently include peas, safflower, and amaranth; winter
canola is a potential new alternative crop for dryland
production. Among these new alternative crops, pea and
safflower seem to be increasing in Panhandle acreage.
These alternative dryland crops account for a combined
total of 20,000 to 30,000 acres.
Irrigation water allocations are also used for water
management in the Upper Niobrara White, North Platte,
and South Platte NRDs. Allocations range from 12 inches
per year to 14 inches per year depending on location.
Throughout the region there continues to be a conversion
from furrow irrigation to center pivot irrigation. The South
Platte NRD estimates that in 2010, over 90 percent of
irrigation was delivered through a sprinkler system, while
the North Platte NRD has approximately 65 percent of its
acreage devoted to sprinkler irrigation.
IRRIGATED PRODUCTION. The remaining 23 percent of
the District’s cropland, almost 800,000 acres, is irrigated. Scotts Bluff, Box Butte, and Morrill counties represent 55
percent of irrigated acreage in the Panhandle. The water
Groundwater. The Ogallala and High Plains aquifers
are the two main groundwater sources. Groundwater
resources are managed by five Natural Resource Districts
(NRDs): the Upper Niobrara White, North Platte, South
Platte, Middle Niobrara, and Upper Loup. There are just
over 7,700 registered irrigation groundwater wells in the
16 counties of the Panhandle District. Moratoriums on
drilling new wells that would pump more than 50 gallons
per minute from groundwater sources are an important
part of water management for four of the five NRDs. The
Upper Loup is the only NRD in the Panhandle District that
is not fully appropriated, thus only an application and
permit are required to drill a high capacity well.
Surface Water. Over 386,000 acres of land are
dependent on surface water for irrigation, according
to the Nebraska Department of Natural Resources.
Surface water is sourced from 136 rivers and creeks in
the Panhandle District. The North Platte River supports
the highest number of acres, with over 130,000 acres
of irrigation rights allocated. The Loup-Middle, Snake,
Niobrara, White and South Platte rivers service less than
6,000 acres of irrigation each. Scotts Bluff County has the
most surface water irrigation with over 137,000 acres.
© The Board of Regents of the University of Nebraska. All rights reserved.
Commodities
LIVESTOCK
The livestock industry is one of the Panhandle’s largest contributors to the local economy. In 2007 the total market
value of livestock sales was just under $1 billion. In 2007, 461,619 calves on feed were sold. As of January 1, 2013 the
District was home to 1,206,200 head of cattle and calves or approximately 20 percent of the state’s inventory. The local
average price for fed steers is $110.94/cwt. Other livestock in the District, as reported in 2007, include almost 15,000
head of horses and ponies, over 6,000 lambs, 5,500 layers, over 5,000 hogs and pigs, and over 3,000 head of bison.
CORN
Fifty percent of the Panhandle’s irrigated acreage, approximately 399,000 acres per year, is planted to corn. The
average yield for irrigated corn in the District is 159 bushels per acre. Dryland corn acreage varies depending on corn
price and moisture availability. In 1994 only 10,500 acres of dryland corn were planted, but in 2000, 98,500 acres were
planted. From 2010 to 2012 an average of 91,500 dryland corn acres were planted per year with an average yield of
more than 50 bu/ac. Corn prices reached a local high in August 2012, with a monthly average price of $7.99/bu. The
three-year average annual price and basis are $5.68/bu and 0.33 under, respectively.
Two regional ethanol facilities also demand corn. The Torrington, Wyoming and Bridgeport, Nebraska ethanol plants
have a combined capacity of 64 million gallons of ethanol per year. Bridgeport Ethanol, the larger facility, can convert
about 48,000 bushels of corn into approximately 137,280 gallons of ethanol per day. An important ethanol byproduct
for area cattle feeders is wet distillers grains (WDG). Bridgeport Ethanol fills approximately 46 semi-loads a day with
WDG for use at area feed yards.
WHEAT
Since winter wheat production in the area peaked in 1982, winter wheat acreage has declined by almost 65 percent.
Today, winter wheat is grown on approximately 669,000 acres in the District and produces over 20 million bushels.
The three-year annual average wheat price and basis are $6.25/bu and 0.73 under, respectively. Over 45 percent of
Nebraska’s winter wheat acres are in the Panhandle. Almost half of the U.S. wheat crop is exported, making international
markets vital to western Nebraska wheat producers. Approximately 90 percent of the District’s wheat is dryland; however,
irrigated wheat has rapidly increased in production to about 71,000 acres.
SUGARBEETS
About 45,000 acres or 90 percent of Nebraska’s sugarbeet acres are grown in the Panhandle District. The average per
acre sugarbeet yield is 25 tons. A multistate, producer-owned cooperative owns and operates area sugarbeet processing
and storage facilities. Sugarbeets are processed in Scottsbluff, Nebraska and Torrington, Wyoming and stored in Bayard,
Mitchell, and at two facilities in Gering, Nebraska. In 2010 the total impact of value-added sugarbeet manufacturing for
Nebraska was $187 million. Sugarbeets are primarily grown in Scotts Bluff, Morrill, and Box Butte counties.
ALFALFA
Almost 161,000 acres are devoted to alfalfa hay in the Panhandle District, producing almost 530,000 tons annually. The
Panhandle District produces 20 percent of Nebraska’s alfalfa hay. In April 2013 alfalfa reached a historical high price of
$246/ton; the three-year annual average for alfalfa is $118/ton. Dominant alfalfa producing regions include Sheridan,
Scotts Bluff, and Dawes counties. Other forms of hay are also prevalent in the Panhandle, averaging over 620,000 acres;
however, non-alfalfa hay is usually priced at half the value of alfalfa.
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DRY BEANS
Dry bean acreage in Nebraska averages 103,000 acres per year. The Panhandle District represents over 90 percent of
total statewide dry bean acreage. Average dry bean yield per acre in the District is 23 cwt. Nebraska ranks first in U.S.
Great Northern bean production and second in pinto bean production. Additional varieties grown in the District include
kidney, navy, pink, and black beans. The price of dry beans varies by variety. From 2010 to 2012 Great Northerns
averaged $35.14/cwt. and pintos averaged $34.83/cwt. Foreign markets are vital to the marketing of Nebraska dry
beans. Approximately 10 percent of the Great Northerns are exported annually; leading importers include France and
Turkey. Annually, up to one-third of the nation’s pinto beans are exported. Mexico and the Dominican Republic hold
approximately 60 percent of U.S. pinto bean export market share.
MILLET
Proso millet is grown on approximately 107,000 acres of dryland and approximately 5,000 acres each of irrigated and
organic farms in the Nebraska Panhandle, according to the 2007 Census of Agriculture. This represents over 80 percent
of statewide acreage. Nebraska ranks second in national proso millet production. Proso millet prices are extremely
volatile, with two-fold price differences common year to year. Recent prices for proso millet have been rising rapidly,
with an annual average price of $12.08/cwt from 2010-2012. In March 2013, proso prices reached $36.00/cwt. This
rapid increase in the price of this commodity indicates its increasing relevance in the Panhandle. Primary markets for
proso millet are birdseed and human consumption in both domestic and international markets.
SUNFLOWER
Sunflowers are grown in both irrigated and dryland regions of the Panhandle. Fifty percent of the sunflower acres
are grown for confectionery uses and the remaining acreage is for oil seed purposes. Sunflowers are produced on
approximately 30,000 acres in the Panhandle, accounting for 62 percent of total state production.
POTATO
Nebraska’s potato industry has grown from 9,000 acres in the mid-1980s to 23,000 acres in 2012. Yields have
improved from 280 cwt/acre (1986-88) to 445 cwt/acre in 2012. Potato production in the Panhandle was over 10
million cwt in 2012, and valued at over $101 million. The Panhandle District has almost one-third of the state’s potato
production, most of which is in Box Butte County, accounting for over $30 million in value. Potato production is a high
intensity farm operation employing many people. The economic impact is estimated between 2.5 and 3 times the
production value. In the District, potato is primarily grown for seed and for the potato chip industry under processor
contracts. Seed and chip potatoes from Nebraska are sold throughout the U.S. Fresh market potatoes are grown in
other parts of the state and exported as well.
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Extension is a Division of the Institute of Agriculture and Natural Resources at the University of
Nebraska–Lincoln cooperating with the Counties and the United States Department of Agriculture.
University of Nebraska–Lincoln Extension educational programs abide with the nondiscrimination
policies of the University of Nebraska–Lincoln and the United States Department of Agriculture.
© 2014, The Board of Regents of the University of Nebraska on behalf of the University of Nebraska–
Lincoln Extension. All rights reserved.