Photos of a farmer-owned wind farm near Petersburg, Nebraska, in Boone County. (Courtesy of Nebraska Farmers Union)
LINCOLN — After having the biggest gross domestic product loss among states at the start of this year, Nebraska tied for the sixth-highest GDP gains during the second quarter.
The latest report from the U.S. Bureau of Economic Analysis shared that Nebraska’s GDP rose roughly 5.2% in April, May and June. The real GDP nationally rose 3.8%, following slower growth of 0.5% in the first quarter. GDP represents the total market value of goods and services produced during a specific time period.
Nebraska Gov. Jim Pillen talking at St. Teresa Catholic School in Lincoln on Sep. 29. 2025. (Juan Salinas II/Nebraska Examiner)
“This report points to the underlying strength of Nebraska’s economy — one driven by agriculture, value-added processes, biofuels, manufacturing, financial services, healthcare and other key components,” Gov. Jim Pillen said in a statement.
Nebraska’s GDP fell 6.1% in the first quarter of 2025, a previous bureau report shared, joining Iowa in posting the biggest declines during that period. Falling row-crop prices were a big contributor, as products like wheat, corn and soybeans make up a large portion of Nebraska’s agricultural output.
Row-crop prices are still hurting, according to Ernie Goss, a regional economist and professor at Creighton University. But prices on other agricultural products — namely livestock — have continued to strengthen.
With Nebraska being a largely “ag independent” state, Goss said shifts in the agricultural industry can have a larger impact on the state’s economy compared to others.
“You live with the volatility, and you die with the volatility,” Goss said.
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Goss pointed to several other factors that contributed to Nebraska’s GDP growth. He said construction and health care spending was up during the second quarter. He noted high-tourism events like the College World Series also likely played a role.
Pillen said the federal report confirms that Nebraska’s economy is stable and argued lawmakers should use that advantage to improve the state’s tax system. State Sen. Brad von Gillern of Elkhorn, chair of the Nebraska Legislature’s Revenue Committee, said in the governor’s press release that he believes the state’s recent income tax reductions and property tax relief contributed to the growth.
State Sen. Mike Jacobson of North Platte said, “The latest GDP growth for Nebraska is further evidence that the Nebraska way of lowering taxes and growing our traditional values is working.”
However, Goss said Nebraska’s second quarter growth may have been an “anomaly.” He said it’s common for states seeing a period of economic slowdown to bounce back in the next quarter, but he said there are signs the third quarter might not be so positive.
A Creighton economics report released Wednesday indicated that Nebraska’s business conditions fell this fall and found that the overall value of the state’s exported goods in 2025 is not as high as it was at this point in 2024.
Goss said China, which was once a big buyer of Nebraska pork and soybeans, has not made a purchase since May. He speculated that this may be in retaliation for the tariffs imposed by the Trump administration.
While Goss said Nebraska’s GDP may not fall into the negative percentages next quarter, he doesn’t expect the growth to be as significant as 5.2%.
“It won’t be negative, but it won’t be the strongest,” Goss said.
