By Jennifer Whitlock
Field Editor
A new report shows just how vital the U.S. food and agriculture sectors are to fueling the American economy.
A study commissioned by 34 food and agricultural groups, including the American Farm Bureau Federation (AFBF), found food and agriculture supports more than 40 million jobs and contributes nearly $7 trillion to the U.S. economy each year, while exports contribute another $155 billion.
“The agriculture and food industries in the U.S. feed, clothe and fuel the American economy. Not only that, these sectors drive nearly 20 percent of U.S. economic activity and employ tens of millions of Americans,” John Newton, AFBF chief economist, said. “This study is critical in showing how food and agriculture support both our local and national economies.” Farmers, ranchers, agricultural laborers, food scientists, food inspectors, factory workers, truck drivers, grocery store employees and countless other Americans link together in the food supply chain every day to bring the food grown on U.S. farms and ranches to grocery stores, restaurants and dinner tables across the nation.
The report, Feeding the Economy, considered direct economic impact, supplier economic impact and induced economic impact. For the study, the food industry includes businesses involved in food agriculture, food manufacturing, food wholesaling and food retailing.
Industries are linked to each other when one industry buys from another to create its own products, according to study methodology.
The mining, construction, manufacturing, wholesale, retail, transportation and communication, finance, insurance and real estate, business and personal services, travel and entertainment and governmental sectors all benefit from agricultural and food activity, the study’s authors concluded.
Together, the food and agriculture sectors directly support about 20 million jobs, or more than 13 percent of U.S. employment. In Texas, food and agriculture supports an estimated 3.7 million jobs with an economic impact of $614.5 billion annually.
The research used to develop the study was funded by The Goodstone Group and conducted by John Dunham and Associates.
Click here to view the full report.