Feeding the Economy report celebrates agriculture
The nation’s agriculture community continues to drive the United States economy, according to advocates who issued the Feeding the Economy report on March 23.
Thirty-five agriculture groups released the 10th annual report and it states that America’s food and agriculture industries generated more than $10.4 trillion in economic value, which represents nearly 20% of the overall national economy. It also marked a nearly $894 billion year-over-year increase, reflecting growth across agricultural value chain amid ongoing inflation pressures, a challenging farm economy and uncertain global trade.
John Bode, president and CEO of the Corn Refiners Association, said the report takes a look at the entire food chain from the farmers, manufacturers, retailers, and food service and it supports more than 48 million jobs. He said nearly one in five jobs are impacted, and the sector generates more than $3 trillion in wages.
Trade helps
Bode is an advocate of trade and that positive deals must be in place. He noted that ag exports had declined by $5.4 billion to $177.3 billion the past year and by 9.8% over the past decade. Adjusting for inflation, export value is down 5.5% for year over year and 9.8% over the last decade.
Bode said agriculture and food industry is an integrated system and that having a healthy farm economy is necessary and foundational. It also needs domestic and international markets with always an eye toward future markets.
Eric Dell, president and CEO of the American Bakers Association, said in looking at the previous year’s report he was concerned about the decline in economic impact, but glad to see that the report shows a rebound from 18.7% to nearly 20%. Bakers, he said, provide affordable and essential food products in the U.S. and globally.
A farmer’s perspective
Karl Schlegel, a fourth-generation Maryland farmer who raises fruits and vegetables and is a representative for the American Farm Bureau Association from Maryland, said American agriculture industry starts with farmers and ranchers, noting the success story and the unique challenges many producers face.
“According to this year’s report, food and agriculture employee employment generates more than $3 trillion in wages for the hard-working farmers, cooks, retail workers, food manufacturing employees and more,” Schlegel said. “These wages are growing faster than the inflation rate, wages are up 4% year-over-year and 13% over the past decade. As we celebrate the importance of food and agriculture during National Ag Week, it’s important to recognize the challenges of the folks who help put food on the table for consumers here in America and around the world.”
Charles Crain, managing vice president of the National Association of Manufacturers, said the food and beverage industries are critical to ag manufacturing. He said they support many local economies throughout the country. The food and ag industries employ one in five workers in the country, and that impressed him.
“This is an incredible economic driver across the country, but specifically, jobs are created in communities in every state, every congressional district,” he said. “This is particularly the case for rural and regional communities in manufacturing, those are largely small and family-owned businesses. Ninety percent of manufacturers are small and medium sized businesses. These are the anchors for local communities across the countries, and this is especially true in the food and ag space, where those companies are the keystones, the cornerstones of local communities across the country in terms of providing jobs to workers.”
Bode said the report is well-recognized by policymakers, and he believes that its broad-based approach makes difference because it is not narrow.
All sectors need success
Doll also stressed that any farm-to-fork report needs all sectors to have success—including production agriculture.
Schlegel said farmers generate revenue and wages and in many ways they are just as vibrant and necessary many years ago.
“You might use your iPhone a handful of times through the course of the day, but you’re definitely going to eat three meals, you’re definitely going to have a beverage,” Schlegel said. “You’re definitely going to use the products that started with just the hope that that seed was going to germinate out of the ground.”
Bode said an overall food policy is important and all sectors need market access.
“North American agriculture is considered the most food secure in the world,” he said. “That’s why we need markets with a focus on exports and trade is important.”
People think about international markets in terms of corn, soybean and raw commodities—and they are important— however, the reason policy is important is because Brazil has displaced the U.S. as the world’s largest exports of corn and soybeans, Bode said.
Bode said the reasons that has occurred is because our competitive advantage for transportation has declined, while Brazil’s has rapidly expanded its investment.
More information is available at feedingtheeconomy.com.
Dave Bergmeier can be reached at 620-227-1822 or [email protected].
