Idaho agriculture — an economic sector that grows slowly but recedes slowly — is a stabilizing force during a recession.
And ag's economic impact greatly exceeds its relatively low number of jobs, because ag exports pump new money into the state.
Those are the key findings from a recent University of Idaho study that should inform the way the state invests in research, and the way economic development pros recruit employers during a recession.
The College of Agricultural and Life Sciences researchers tried to look beyond the gross numbers: agriculture's 56,000 jobs, accounting for 6 percent of the Idaho work force; $1.2 billion in wages, accounting for 4 percent of the statewide total.
The researchers instead tried to quantify ag's impact on Idaho's economic base: the service jobs and sales dependent on ag, and ag's exports. The influx of money from out-of-state is pivotal. "We don't get rich by doing each other's laundry, or suing each other," said Garth Taylor, an associate professor for the U of I's Ag Extension division.
The results: Agriculture is accountable for 156,599 jobs, $4.2 billion in wages and $21 billion in total sales. That, according to researchers, made agriculture the largest contributor to the economic base in 2006, slightly ahead of the tech manufacturing sector.
Ag's No. 1 ranking isn't the big headline, since the gap between ag and high-tech was relatively small. The bigger point to me is that the two sectors have the same basic economic benefit. Ag creates indirect jobs and sales in rural Idaho, while high-tech has the same effect in urban areas such as the Treasure Valley.
One difference, however, is that Idaho's ag economy is more stable than the notoriously turbulent high-tech sector. Because Idaho ag incorporates so many different commodities, the hot markets and the down markets level each other out. Individual farmers' fates rise and fall on the tide of commodity prices, but overall, the statewide ag economy remains relatively constant.
For lawmakers wrestling with the toughest state budget in a quarter century, the implication is clear. As difficult as this budget crisis is, it would be even more pronounced without ag's stabilizing effect on tax collections.
Two quick policy lessons from this research:
• Despite the current focus on research into green energy and other 21st Century industries, there is a basic value in research that makes Idaho farmers more productive, or introduces new crops in the state. And, of course, biolfuels research is the best of both, combining ag and green energy.
• While high-tech should remain a top priority for economic recruiters, agribusiness should also be a focus. Here again, it provides Idaho with a chance to export products and bring in revenue. Create enough high-tech and agribusiness jobs, and the service and support jobs should spring up on their own without any recruiting effort.
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Unfortunately some of the uppity urbanites look down on the ag industry- as they forget where their FOOD comes from.
Don't worry, it will be in pills soon like SCI-FI...
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To read is wonderful. To comprehend art. Falling back to whatever you believed in is NORMAL.
A very polished piece of self-serving propaganda
Before anyone swallows this slick, 12 page "analysis" that lobbies for the University of Idaho, and their employees that crafted it, they really need to check out the US Dept. of Commerce's Bureau of Economic Analysis, re: Idaho's economy and its true components, and their relative sizes.
Agriculture surely has a place in Idaho, but it shouldn't be the tail that wags the dog.
Shouldn't be computers EITHER.
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To read is wonderful. To comprehend art. Falling back to whatever you believed in is NORMAL.
agriculture
The ag industry could generate a great deal of good will by promoting less water intensive crops. Barley and wheat are good cash crops and require much less water than potatoes or alfalfa. Expanding elevator operations and establishing farmers cooperatives in smaller valleys and running them as a test project would be a good way to determine the cost effectiveness and monitor the improved wildlife habitat from additional in-stream flows and the impact on local economies from the increased tourist money.
No kudos for ag
The study might show billions in sales but let's offset that with government subsidies and tax advantages; especially those tax deductions which are not truly farm related. Ag has it good!
I will agree to disagree with you as I've many in my family tree
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To read is wonderful. To comprehend art. Falling back to whatever you believed in is NORMAL.
The same agriculture that enjoys a perpetual $300 billion $
stimulus? www.ewg.org Look around the country & see which corporate farmers collect millions of our tax $ & buy up the family farms going under, with that same tax $. Ag refuses to pay carriers a fair while that carrier goes broke delivering these fine products while his tax $ is paid into subsidies.
I hate to break it to the farmers but they won't sell anymore then people will buy if it doesn't work both ways.
Farming used to be a business, now it's just more corporate welfare breaking US through campaign finance. Our representatives promote illegal immgration to provide cheap labor that breaks our health care system in return for campaign contributions.
How many ways does agri corruption bleed US taxpayers while claiming to provide all this fine food? I'm sure if they paid a living wage we would have Americans working these jobs instead of illegal immigrants. Just like the meatpacking plants, busted the unions & promoted illegal immigration ahile abusing those immigrants & we pay for injuries.
Our representatives paid family dairies our tax $ to quit milking in the late seventies & early eighties in return for campaign contributions & what do you know, 30,000 cow dairies popped up like weeds, polluting air & water. Why did we suddenly have an increased need for all that milk we had quit producing because there was too much? Campaign finance!
Why should we care if we hand out a trillion every so often in stimulus to rebuild America after all the tax cuts when we hand out trillions to ag all the time? Everybody & his brother is all about contributing to a crooked politicians so they get a free handout.
If government would stay out of farming & let it be run as business the markets would take care of themselves. Oh wait, capitalism works just fine, the reason for all the government hand out & current financial crisis we're bailing these crooks out of.
Agriculture is just like the banks, insurance, mortgage, banks, SEC, FED, Treasury, & everybody else who contributes to our representatives. It's easier than an honest living.
All the people losing their jobs & homes might want to ask a farmer for a job, see what kind of wage you can make working for your own tax $ paid in subsides to the farmer who seems to believe he does it on his own?
Good Column
Thank You Kevin. This UI study finally and honestly shows ag's true contribution to Idaho's economy. There is absolutely no reason why any economic analysis should exclude food processing revenues and the jobs created by the hundreds of small businesses that support agriculture in this state.
Subsidies? Show me an industry that isn't subsizided and I'll show you one that's about to be. Food production in this country has social costs attached that make it more expensive. Most of our competitors that export wheat, beef, potatoes, corn etc, don't have environmental protection agencies, minimum wage laws, endangered species acts and piles of bureaucrats. The bulk of the farm bill is paid out in food assistance and nutrition programs like WIC, food stamps, school lunch etc.
To MikeL, farmers could create good will by giving up their water? Wheat and barley are good cash crops? You are sorely misinformed. First, farmers, like any other small business, need to make a profit. You don't do that by not irrigating the crops. Idaho farmers could do a better job of conserving water by shutting off during high winds and several other ways, but wheat and barley are good cash crops in this state about one year in ten. I would wager there isn't a single farm in this state that could survive on wheat and barley alone.
Immigration? There are a half million dairy cows in this state that all get milked twice a day. Milkers make 10 to 15 bucks an hour, which is in line with the median income of this state. People who want jobs can go to just about any dairy and find a job. Problem is, most people don't want to milk cows for 10 hours a day.
The bottom line here people, as Kevin pointed out, is agriculture stabilizes our economy and that's a good thing.
Why the competition?
Some high tech businesses are helping farmers improve their productivity while conserving on water and energy requirements. The two industries can and do work together more than this blog acknowledges.
agreed. this isn't a zero sum game
I don't understand why some people keep trying to promote a dichotomy between ag and tech. They aren't mutually exclusive. Let's support both! Cow chips *and* computer chips!
Bossy has a better memory than a PC.
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To read is wonderful. To comprehend art. Falling back to whatever you believed in is NORMAL.