WASHINGTON, DC – Businesses supplying farmers and ranchers generated more economic value, employment, and worker compensation than agricultural production itself. USDA’s Economic Research Service says upstream agricultural activity produced $570 billion in output and contributed $241 billion to gross domestic product in 2017.
Farm production generated $423.3 billion in output and $156 billion in value added during the same year. Upstream activity supported more than 1.56 million jobs, representing 1.28 percent of private-sector employment.
Worker compensation reached $118.7 billion across upstream industries, nearly three times the $40 billion paid directly by farms and ranches. Domestic businesses produced 92 percent of upstream output, with imports supplying the remainder.
Major contributors included animal-feed manufacturing, machinery production, agricultural chemicals, petroleum refining, construction, transportation, insurance, research, real estate, and wholesale trade.
The findings show farm demand extends deeply into rural and urban economies. Changes in acreage, livestock numbers, input purchases, or farm income can affect employment and business activity far beyond the farm gate.
Farm-Level Takeaway: Farm spending supports a larger network of jobs and economic activity than farm production alone.