Companies expanding in Nebraska now have more “advantages” to choose from

LB895, passed by the Legislature and signed by Gov. Dave Heineman earlier this year, adds another tier to the successful Nebraska Advantage package of incentives for businesses that relocate to or expand in the state. Businesses will qualify for the Super Advantage if they invest $10 million while creating 75 jobs paying either 200% of a county’s average wage or 150% of the state’s average wage, whichever is greater. Businesses also will qualify if they invest $100 million capital investment while creating 50 jobs at the thresholds stated above.

These wages range from $50,700 (160% of State’s average annual wage) to $91,972 (200% of Stanton County’s average annual wage). In return for a company’s investment and job creation, they would receive a 15% investment credit, 10% wage credit, tangible personal property exemption for 10 years, and a sales tax refund on all capital purchases. In addition, the company may use the credits to offset their real property taxes at the site of the project, as well as apply them to sales and income taxes, and employee withholding. The entitlement period is 10 years for these benefits as opposed to the next highest entitlement period of seven years.

Lexington, Neb. gets 100-year rain

Lexington, Neb. Mayor John Fagot said the recent rain is one for the record books. He said according to statistics specific to Lexington, the downpour can officially be called a “100-year rain.” Taking the floodplain into consideration, the amount of rainfall is classified in this unusual category. Nearly every road in Dawson County became flood ground when this heavy rain descended upon the county Thursday night and didn’t let up until late Friday morning.

Flooding Sinks in for Central Neb. Farmers

The sound of waves isn’t soothing to the ears of farmers. Not when the water is in their fields. “Oh my gosh, when’s it going to quit?” asked farmer Virgil Byerly, who grows corn and soybeans north of Grand Island. Farmers like Kenny Clausen and Larry Knuthe haven’t seen their fields this bad since 1967. The impact may hit Dawson County farmers the hardest.

Cozad received almost eight inches in two days. Randy Schneider of Cozad has some crops covered with up to two feet of water. “I haven’t seen this much rain in all my life,” he said. That’s almost 60 years.” He’ll have to replant. “That’s not going to be real good with the price of fuel,” he said.

Reinke a big part of Nebraska’s irrigation

Forty years ago last week, a Ruskin, Neb., farmer pushed the button to start up the first “Electrogator” center pivot irrigation rig built and sold by Reinke Manufacturing of Deshler, Neb. Over the years, the Reinke business grew to become one of four leading irrigation equipment manufacturers in the world. The company, still family-owned and based in Deshler, employs about 400 people. The other three leaders, Valmont Industries Inc., Lindsay Corp. and T-L Irrigation Co., also are based in Nebraska. Reinke, founded by farmer and self-taught engineer Richard Reinke, was not the first company to manufacture a center pivot.

Competitor Valmont Industries, now based in Omaha, bought the center pivot patent from Colorado inventor Frank Zybach and began manufacturing its version in 1954. But the Electrogator included two crucial innovations, according to Reinke CEO Chris Roth — who, at 39, is younger than the invention that launched the company’s irrigation business.

It was the first electric center pivot that was reversible, meaning it could be installed in a field too small to allow the pivot to turn a full circle. The 1960s were a crucial time of development for Nebraska’s center pivot industry, with the Lindsay Corp. of Omaha developing its “Zimmatic” system and T-L Irrigation Co. in Hastings developing its hydraulically powered pivot at about the same time Reinke developed the Electrogator.

In 1968, there were probably more than 100 companies seeking a foothold in manufacturing various center pivot irrigation mechanisms, industry leaders said. Only four major manufacturers survived and prospered, all in Nebraska, in part because the state’s semiarid climate creates a demand for irrigation in the area and in part because the Ogallala aquifer provides a ready water supply. The Nebraska Pivot Irrigation Manufacturers’ Association says that pivots now irrigate 4.6 million acres in Nebraska and that, based upon a study by Charles Lamphear of the Nebraska Policy Institute, each pivot results in $76,000 of economic benefit each year.

Roth and other pivot manufacturers said there’s room for growth in their industry, even though much of the state is more carefully managing water usage and many western areas have put moratoriums on additional wells, irrigated acres and new appropriations from streams, rivers and lakes. Pivots waste less water than “flood” methods of irrigation, in which water is delivered into fields via gated pipes and furrows in the crop rows.

Reinke Manufacturing honored for innovative efforts

Reinke Manufacturing Co. has been named the recipient of the first-ever Nebraska Innovation in Manufacturing Award. The Deshler company that makes mechanized irrigation systems and chassis equipment was honored at the annual meeting of the State Chamber’s Manufacturers Council on Wednesday. Presented by the Nebraska Chamber of Commerce & Industry and professional services firm RSM McGladrey, the award recognizes Nebraska manufacturers demonstrating new ways of conducting business.

Reinke was selected based on its workforce training and retention efforts. The company has partnered with local schools and community colleges to create career opportunities for those who want to remain in the Thayer County area. “Reinke has devised a solid model to attract and retain employees,” State Chamber President Barry Kennedy said in a news release.

“The company is proving the skeptics wrong when they say it’s impossible to find enough skilled labor in rural Nebraska.” Reinke employs about 400 employees in a community of nearly 900.

Northeast Nebraska mailbox project invites grads to return home

Each of the 172 seniors who graduated this year from one of the six high schools located in Holt County received an identical present — a congratulatory note offering graduation wishes and an open invitation to remember the communities where they grew up. And the invitation came inside a personalized mailbox. Nicole Sedlacek, Holt County Economic Development (HCED) director, said the mailbox project urged graduates who are entering the work force to take an active role now in the community.

Students who plan on attending college were asked to consider placing their mailboxes in their hometowns and Holt County following graduation from college. Sedlacek said most youths have hometown and school pride. Showing graduates the career and entrepreneurial opportunities that are available or needed in the region might help reverse trends in regard to population of rural communities. Making a connection with youths while they are still in high school is a key to success.

Sedlacek said that giving youths a sense of ownership instills a sense of community, which helps develop an attitude of wanting to return home. With the popularity of online networking, HCED can keep individuals updated via their e-mail. The development office has created an online presence at Facebook and currently has more than 100 members.

Nebraska Economic Leaders: Rural America Is Dying

Is rural America dying? Economic development leaders in Nebraska say yes. With the workforce leaving for better paying jobs in bigger cities, leaders are asking themselves, how can rural towns retain businesses, fill schools, and stay vibrant? An economic summit Thursday in Wayne, Neb., sought to answer those questions.

Mayors, city council members, and economic development leaders from all over Nebraska attended seminars and networked with economic development experts. The summit’s keynote speaker said rural towns need to recognize that it’s not location that keeps people in town; it’s quality of life.

“Communities that invest in themselves and create the amenities that attract people,” keynote speaker Don Holbrook said. “Like having a great college like Wayne State here as an asset, huge asset. If they play off of that, any community can be a world class community.”

From sessions throughout the day, to networking and meeting other economic leaders, the summit’s goal was to share experiences and forge partnerships throughout the region. The summit was funded by a grant from the Nebraska Department of Economic Development.

Nebraska building relationships for global investment

Nebraska is the first state to make detailed business development presentations to the Chinese cities of Xi’an and Hangzhou. More than 300 Chinese attended the sessions in Xi’an (pronounced SHE-ahn), which has a population of 2.7 million, and in Hangzhou (pronounced HANGH-joe), with 6.4 million residents, said Joe Chapuran, international development manager for the Nebraska Department of Economic Development. The stops at the two cities were highlights of six Nebraskans’ recent 18-day trade mission to China and Japan, aimed at finding new business relationships and enhancing existing commercial connections between Nebraska and the two Asian giants.

Also on the trip were representatives from the Greater Omaha Chamber of Commerce, Nebraska Public Power District, University of Nebraska Medical Center, Werner Enterprises and JZW International, a trade firm. Many of the discussions centered on farming. Manufacturing, distribution, importing and exporting were big topics, too, said Marisa Ring, international business developer for the Omaha chamber.

“We were answering questions about work force, on incentives, on operating environments, about the full scope of questions you get when someone is seriously evaluating an opportunity,” Ring said.

In Japan, the group visited Kobe, Saitama, Shizuoka and Tokyo, mostly for individual talks with business contacts built up over years of commerce between Japan and Nebraska. By being first in the two Chinese cities, Chapuran said, Nebraska’s economic developers hope to compete with larger states that have more resources to focus on foreign trade. The Nebraska group was also promoting the state’s first “reverse trade mission,” Sept. 10-12, which is expected to draw 100 or more business officials from Brazil, China, Japan, Germany and other countries.

Currently, there are 350 oreign-owned businesses in Nebraska, with 19,000 employees.

May showers continue to delay corn planting in Nebraska

Above-normal rainfall and cooler temperatures this month are playing havoc on farmers trying to get into the fields to finish corn planting. Corn planting was rated at 55% complete as of Sunday, according to the weekly Nebraska Weather and Crop Report from the U.S. Department of Agriculture’s National Agricultural Statistics Service, Nebraska Field Office.

That’s well behind last year’s rating of 64% complete and five days behind the average of 71%. The wet, cool weather is also delaying soybean planting statewide, as only 6% of the crop has been planted. That’s behind last year’s 23% and the five-year average of 19%.

High energy prices hinder economic growth in Midlands

High energy prices have led to languishing economic growth and continued job losses in 10 Midwestern and Plains states, according to a survey of rural bankers. The overall economic index for the region rose slightly to 47.5, from 46.3 in March, still weak and below the nearly two-year low of 50 measured in February.

An index over 50 represents economic growth; a score below 50 signals economic downturn. Farmers aren’t the only ones hurting from higher energy prices, according to the survey, which includes Nebraska. “Higher energy prices appear to be the culprit in the (index’s) downturn,” said Creighton University economics professor Ernie Goss. Goss and Bill McQuillan, chief executive officer of City National Bank in Greeley, Neb., created the monthly survey of rural bank presidents and chief executives.

“Any time there are abuses of the financial system by the large financial firms, community banks pay the price,” said Jim Stanosheck, CEO of State Bank in Odell, Neb. The farm equipment sales index was a strong 71.4 in April, down slightly from 72.5 in March but up from 64.3 in April 2007. The farmland price index stood at 71.3, down from March’s 78.1. Bank indicators were mixed for April. Farmers pushed loan volumes up, to 57.3 from 54.5 in March.