Annual Industry Study Underscores Vital Role of Food & Ag Sectors In Feeding The Economy - Kentucky Farm Bureau

Annual Industry Study Underscores Vital Role of Food & Ag Sectors In Feeding The Economy

Posted on Mar 24, 2022

Nationwide economic impact study commissioned by 30 food and agriculture groups highlights trends, influence of sectors in local-level and broader U.S. economy

Washington, D.C. – Today, 30 food and agriculture groups released the sixth annual Feeding the Economy report, a historic farm-to-fork economic analysis revealing how these sectors influence the local and broader United States economies. Two years into the COVID-19 pandemic, this year’s study highlights how the industries remained resilient to provide Americans with jobs, economic opportunity and safe food.

The report’s findings show that 7% of the nation’s economy and 29% of American jobs are linked to the food and agriculture sectors, either directly or indirectly. Amidst the global supply chain and inflation crises, these sectors also exported $182.91 billion worth of goods, helping the U.S. maintain its position as a leading player in global agriculture. In 2021 these sectors contributed a total of $3.01 trillion to the U.S. economy.

In addition to providing insights on nationwide impact, the report breaks down the sectors’ impact by state and congressional district. Key findings include:

Total Jobs:? 43,464,211

Total Wages:?$2.30 trillion

Total Taxes:? $718.15 billion

Exports:? $182.91 billion

Total Food and Industry Economic Impact: $7.43 trillion

To measure the total economic impact of the sectors, the analysis also includes the direct and indirect economic activity surrounding these industries, capturing both upstream and downstream activity. For example, when a farm equipment retailer hires new employees because farmers are buying more tractors, experts consider the new salaries an indirect impact. Similarly, when a retail associate spends her paycheck, an induced economic impact occurs. Together, these have a multiplier effect on the already formidable direct impact of food and agriculture.

 

“The new Feeding the Economy report highlights how food and agriculture overcame pandemic disruptions to continue to serve as a bedrock of the U.S. economy,” said John Bode, President & CEO of the Corn Refiners Association (CRA).

“Feeding the Economy, in concert with National Ag Day, celebrates the collective impact that everyone who grows, raises, harvests and processes U.S. agricultural products have on our economy. As they work to promote their states’ agricultural products for export around the globe, state commissioners, secretaries and directors of agriculture recognize that a thriving U.S. agricultural industry not only feeds our economy, but also nourishes the world,” said Ted McKinney, CEO of the National Association of State Departments of Agriculture.

“Restaurants and the agricultural community are inextricably linked. Together, we support the communities we call home with fresh ingredients and nutritious meals. America’s farmers and ranchers provide safe and abundant food options to more than one million restaurant locations, and we’re looking forward to continuing our strong partnership as the restaurant and foodservice industry continues its recovery,” said Marvin Irby, Interim President & CEO of the National Restaurant Association.

This year’s report, along with additional quotes from sponsoring organizations, can be found at www.FeedingTheEconomy.com.