Nebraska is in a positive state of mind thanks to a diversified economy and controlled spending, Gov. Dave Heineman told CNBC Wednesday.
Unlike Minnesota, nearly a week into a government shutdown because of an impasse over its budget, the Cornhusker State is doing very well, he said. Heineman noted that ConAgra Foods is based in Nebraska and the state is the second-largest producer of ethanol in the U.S.
"Because of commodities prices and alternative energy, the cattle markets, all of it has come together very well for us," he said. "Think about the fact we’re gonna feed millions of more people probably on less land in the future. I think agriculture’s future still looks bright when you look at the big picture."
Agriculture and ethanol producers could face cuts in subsidies as Congress looks for some way to cut the federal deficit and raise the debt ceiling before August. Heineman said people in his state understand that — up to a point.
"We know in Nebraska if the federal government is going to get its books in order, all of us are going to have to take some reductions in federal spending," he said. "We’re willing to do that. Just don’t try to balance the federal budget on the back of our farm economy."