The value of Nebraska crops has grown by nearly $5 billion over the past two years, with corn leading the way as the result of the increase of the ethanol industry.

According to a report released Thursday by the U.S. Department of Agriculture, the value of principal Nebraska agricultural crops last year totaled $9.157 billion, up from $6.105 billion in 2006 and $4.571 billion in 2005.

Leading the way was corn, whose value was estimated at $5.88 billion last year, compared with $3.53 billion in 2006 and $2.43 billion in 2005. The average bushel price increased from $1.92 in 2005 to $4 last year.

That value is expected to increase this year, especially as more ethanol plants have come on-line that will demand nearly 1 billion bushels of corn by next year.

Last year's crop was more than 1.4 billion bushels, as farmers planted more than 9 million acres of corn.

With corn prices now averaging about $5 per bushel, next year's corn crop, if production is similar to last year, will bring in a $7 billion crop.

"This represents the sure economic value of where agriculture is today," said Don Hutchens, executive director of the Nebraska Corn Board.

Adding more value to Nebraska's economy, Hutchens said, is the fact that more than 1 billion bushels of corn have value added within the state instead of being processed outside of Nebraska's borders. About 400 million bushels of corn grown outside of Nebraska are exported out of state for further processing.

That in-state use represents not only the ethanol industry, but also the cattle feeding industry and other major users of corn.

He said that value-added, in-state processing increases the value of the state's corn crop by as much as $15 billion.

And the amount of corn processed in-state by next year will be more than 1 billion bushels, as ethanol production alone will account for that much.

The second-leading crop was soybeans. While acres were down, prices averaged $9.95 per bushel last year, bringing an estimated total value of $1.89 billion last year. That compares to $1.515 billion in 2006 and $1.306 billion in 2005.

Nebraska's third most valuable crop was hay at $546.9 million, up from $510.5 million in 2006 and $338 million in 2005. Average all-hay prices were down last year, at $89.50, compared with the drought-impacted 2006, when all hay prices averaged $90.50 per ton.

The fourth-leading crop was wheat, which had an estimated total value of $522.5 million last year with an average price of $6.20 per bushel. That marks a large increase from $279.7 million crop value in 2006 and $230.6 million in 2005.

The fifth-leading crop in Nebraska last year was sorghum at $91.5 million, up from $59.6 million in 2006 as the average price jumped from $5.54 per hundredweight to $6.95 per hundredweight.

Earlier this week, the Department of Agriculture released its annual agricultural sector projections looking ahead to 2017, predicting stabilizing food inflation, increased corn acreage and continued increase in corn yields.

"With increased yields and a slight increase in long-term corn acres planted, USDA fully expects growers to be able to meet all demands in the years to come," said Paul Bertels, director of biotechnology and economic analysis for the National Corn Growers Association.

According to the USDA, acreage planted for corn will drop slightly to 88 million this year, but will rebound in 2009 and continue in the 91-million- to 93-million-acre range through 2017. Average yield per acre will continue to rise to 173.3 bushels by 2017, the department projects.

Bertels said the USDA report said ethanol demand will grow steadily to 4.9 billion bushels, or 33 percent of total use, by 2017.

"Further, corn exports are projected to decline slightly over the next several years, but will begin to gradually rise to 2.475 billion bushels by 2017," he said.

Also, the USDA said that after increasing 4 percent this year, consumer prices for food will gradually slow to 2.2 percent annual growth by 2011-17.