Agriculture truly fuels the US economy

Nearly 18% of the national economy and 30% of American jobs are directly or indirectly tied to the food and agriculture sectors, according to a new report, Feeding the Economy, released by 30 agricultural groups on the occasion National Agriculture Day on March 22. , 2022.

The report reveals that a total of 43 million jobs, including 21 million direct jobs, are linked to the agricultural sector with $2.3 trillion in total wages and $7.43 trillion in total economic impact on the agricultural sector. food and industry. Exports also represent nearly $183 billion.

California, Texas, Florida, and New York, in that order, lead the nation in direct employment and federal taxes. Louisiana is the top exporting state, followed by California, Washington, Texas and Illinois.

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 wages an indirect impact. Similarly, when a retail associate spends their paycheck, an induced economic impact occurs. Together, these elements have a multiplier effect on the already considerable direct impact of food and agriculture.

“The findings from Feeding the Economy 2022 confirm that America’s food and agriculture industries are fundamental to a healthy American economy,” said John Bode, president and CEO of the Corn Refiners Association. “The data also reveals that these industries, with the exception of the restaurant sector, have largely recovered from the effects of the pandemic.”

Bode, who runs CRA, which is the main organizer of the report, adds that international markets are key to the financial success of the agriculture and food sectors. However, over the past decade, the United States has fallen behind global competitors in trade, risking reduced American economic competitiveness and investment opportunities.

“While the data highlights the vast influence of these industries in the country, it also highlights the importance of access to international markets,” Bode says. “International trade is essential to the success of agriculture-related industries – 95% of the world’s consumers are located abroad and exports account for more than 20% of the volume of agricultural production in the United States. But the pandemic has disrupted global supply chains and severely affected our ability to export internationally.

Bode says the agriculture and food industries are working to close these gaps and rebuild a more resilient supply chain, but are doing so without a strong position of U.S. trade leadership.

“Just as supply chain disruptions fuel food price inflation, the need to build more resilient supply chains calls for a pivotal focus in US policy. The United States should prioritize new trade deals tariff reductions that will benefit consumers and employment opportunities in the United States by taking the lead from the United States in defining the terms of international trade,” Bode said.

Food security is national security,” adds Rep. Dusty Johnson, RS.D., who plans to speak Wednesday at a panel highlighting the report. “A strong agricultural economy is vital to American competitiveness – which is why I spearheaded the Ocean Shipping Reform Act to secure American exports and strengthen the rules of the road for foreign ocean shippers. COVID- 19 exposed the weaknesses in our economy, and Congress should do everything in its power to keep our producers globally competitive.”

“From campus researcher to geospatial engineer to grocery delivery person, food and agriculture jobs are all around us,” adds CropLife America. “The innovation needed to continue growing food, sustainably, for everyone, will drive economic growth in agriculture for the next decade. CropLife America is proud to feed the economy through investments in new products that help farmers manage pests that threaten the health and safety of our food crops.

The National Pork Producers Council asserts that the American agricultural sector, including the pork industry, is an economic powerhouse, essential to the prosperity of rural America. “The U.S. pork industry employs more than 550,000 Americans and generates nearly $24 billion in personal income to keep kitchens stocked with a quality, nutritious and affordable source of protein,” NPPC says.

Matt Ott, president and CEO of the Global Cold Chain Alliance, says 2022 brings new challenges, but also new opportunities for American food and agriculture. “GCCA members have worked tirelessly to ensure the supply chain continues to function and the global food supply is secure during these uncertain times. The cold chain is a crucial link in the supply chain, moving more than 213 billion pounds of perishables each year.We are proud to support this year’s Feeding the Economy study which continues to highlight the economic importance of food and agriculture,” says Ott.

Constance Cullman, President and CEO of the American Feed Industry Association, shares more than 9.8 billion farm animals and 135 million pets rely on our nearly one million essential workers to provide safe pet foods to support healthy growth and development. “While feeding America’s livestock and pets, we also help maintain our affordable and nutritious protein and dairy food supply and promote the vitality of our rural communities. With nearly $300 billion in sales and a result of $22.5 billion from local, state and national governments, we are woven into the fabric of America’s heartland,” says Cullman.

Proclamation of the day of the Ag

In a proclamation on National Agriculture Day, President Joe Biden recognizes “the invaluable contributions of American farmers, farmhands, ranchers, fishers, foresters and other agricultural workers, who have practiced their craft for generations and touch the lives of Americans every day. Their tireless efforts to grow crops, raise livestock, and distribute food, fuel, and fiber sustain America and the world. They put meals on our plates, clothes on our backs and roofs on our heads. Along the way, American farm workers serve as stewards of the land; ensuring the safety and health of animals, plants and people; and strengthen our rural communities with economic opportunities.

Biden adds that his administration is “committed to helping the agricultural sector improve its resilience and sustainability while increasing its productivity and profitability. By working together, we can ensure that American agriculture continues to lead the world in production, that our food supply is secure, and that our economy remains strong.

Many agriculture stakeholders gathered for the Inaugural Celebration of Modern Agriculture on the National Mall near USDA headquarters on Monday, March 21 and Tuesday, March 22. The event will showcase America’s equipment manufacturers, farmers, ranchers and agricultural innovators on the cutting edge of science and technology.

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