Modest economic growth has been forecast for Nebraska over the next two years.

The Nebraska Business Forecast Council says in its latest report that it expects Nebraska's job growth to be an even 1 percent by the end of 2012 and then rise by 1.4 percent in both of the next two years.

Eric Thompson is an associate professor of economics at the University of Nebraska-Lincoln and the director of UNL's Bureau of Business Research, which publishes the twice-a-year forecast. He says the outlook for growth has weakened somewhat, but the Nebraska economy is expected to grow at a moderate pace over the next three years.

Drought and the rising value of the U.S. dollar are expected to reduce farm incomes this year.