On May 30, 1854, the Kansas-Nebraska Act became law, establishing Kansas and Nebraska as U.S. Territories. The city of Omaha was named the capital. In the 1860’s, settlers came to Nebraska to claim the free farmland granted by the government. Because there were so few trees on the land, many of the early settlers built their home out of sod. Shortly after the Civil War, Nebraska became the 37th state in the Union. The capital was then moved to Lancaster, which was later renamed Lincoln after President Abraham Lincoln was assassinated. The state of Nebraska was named for the Native American word “oto”, which means “flat water”. Although Nebraska was once considered part of the Great American Desert, today it is a leading state in agriculture. The prairie lands have proven invaluable to farmers as they have been converted to ranches and farms.