By Emmy Powell
Communications Specialist
The most recent Feeding the Economy report shows how U.S. food and agriculture continues to impact the nation’s economy, contributes trillions of dollars in output, supports millions of jobs and generates significant tax revenue.
The report estimates food and agriculture contribute more than $10.4 trillion to the U.S. economy, accounting for roughly 20% of total economic activity.
The report looks at the entire supply chain—from farms and ranches to food manufacturing, transportation, retail and food service—highlighting agriculture as a foundational economic driver.
“At the center of that system are farmers and ranchers, whose production underpins economic stability by supplying the raw goods that feed families, sustain industries, support jobs, keep supply chains functioning nationwide and help ensure that the economic value tied to food production remains in the United States,” American Farm Bureau Federation (AFBF) Economist Daniel Munch said in a Market Intel report.
Employment tied to agriculture is equally significant, supporting nearly 49 million jobs, or about one in every three jobs nationwide.
Although on-farm employment represents less than 2% of the workforce, millions of additional jobs are created in processing, distribution, retail and supporting industries.
This demonstrates that agriculture’s economic reach extends far beyond the farm gate, capturing three layers of economic impact: direct activity, indirect activity and induced activity.
“By combining these effects, the report provides a measure of total economic output, employment and tax revenue supported by the food and agriculture system,” Munch said. “This ‘full footprint’ approach is why the figures reported are substantially larger than traditional farm income or gross domestic product measures and why they are particularly useful for understanding agriculture’s broader economic impact.”
Agriculture also plays a major role in generating income for American workers.
In 2026, food and agriculture supported more than $3 trillion in wages and salaries across the economy. These earnings ripple through local communities and support businesses, housing, healthcare and other essential services.
Tax contributions further emphasize agriculture’s importance by generating over $1.3 trillion in federal, state and local tax revenue. This helps fund infrastructure, education and public services nationwide. In total, food and agriculture account for about one-fifth of all U.S. tax revenue.
In Texas, the food and agriculture sector plays an equally significant role in the state’s economy, generating about $868 billion in total economic output and supporting more than 4.4 million jobs statewide. Those Texas jobs contribute over $246 billion in wages.
Texas agriculture produces nearly $95 billion in state and local tax revenue and drives more than $15 billion in exports.
The report also highlights ongoing challenges. Rising production costs, global competition and shifting supply chains threaten to move economic activity overseas if domestic production declines.
Maintaining strength in U.S. agricultural is critical not only for food security, but also for preserving jobs, income and economic stability.
“The economic contribution of food and agriculture, and critically its domestic presence within the United States, is essential to food security and economic stability,” Munch said. “At its core, this is not just about food. It is about whether the economic engine tied to feeding, fueling and clothing a nation remains rooted at home or gradually shifts beyond U.S. borders.”
Leave A Comment