Benkelman is a city in and the county seat of Dundy County, Nebraska, United States. As of the 2020 census, the city population was 821. B…Benkelman is a city in and the county seat of Dundy County, Nebraska, United States. As of the 2020 census, the city population was 821. Benkelman was originally called Collinsville, in honor of Moses Collins, and under that name was founded circa 1880. In 1882, it was renamed Benkelman by the railroad for J. G. Benkelman, a stock raiser.