Stacking up

A report that came out last week confirms what we already know: Vermont agriculture is critical to the state.

“Today, 30 food and agriculture groups released the sixth annual Feeding the Economy report, a historic farm-to-fork economic analysis revealing how these sectors influence the local and broader United States economies. Two years into the COVID-19 pandemic, this year’s study highlights how the industries remained resilient to provide Americans with jobs, economic opportunity and safe food,” a news release from the Agency of Agriculture states.

“This study sheds light for policymakers on how the food and agriculture sector not only feeds Americans, but also feeds the U.S. economy. The economic disruption of the COVID-19 pandemic has only served to further highlight the critical importance of the food and ag industries,” it reads.

The economic impact study released today shows that 17.77% of the nation’s economy and 29.14% of American jobs are linked to the food and agriculture sectors, either directly or indirectly.

Additionally, the analysis broke down the food and agriculture sectors’ economic impact by state and congressional district. It showed that there were more than 50,000 direct agriculture jobs with wages of $1.94 billion in Vermont and that the industry garnered $1.7 billion in taxes and $135.9 billion in export revenue. The total economic impact was figured at $8.45 billion.

Amid the global supply chain and inflation crises, these agriculture sectors also exported $182.91 billion worth of goods, helping the U.S. maintain its position as a leading player in global agriculture. In 2021, these sectors contributed a total of more than $3 trillion to the U.S. economy.

According to the release, 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 salaries an indirect impact. Similarly, when a retail associate spends her paycheck, an induced economic impact occurs.

Together, these have a multiplier effect on the already formidable direct impact of food and agriculture, it states.

“The full analysis underscores the importance the food and agriculture industries have on jobs, wages, exports and taxes in our nation. The data provided includes the indirect and induced economy activity surrounding these industries,” the release states.

In all, “these industries are responsible for roughly onefifth of the country’s economic activity, directly supporting nearly 21.5 million jobs or more than 14% of U.S. employment. It begins in the rich soil of America’s farms and ranches — more than 2 million of them — spread across the heartland and stretching to the coasts,” according to the full report.

Meanwhile, millions of food scientists, production workers, logistics experts, truck drivers and engineers work in more than 200,000 food manufacturing, processing and storage facilities to keep our food supply chains resilient and fresh and safe food readily available worldwide, — the report details.

The Feeding the Economy summary reports: “The journey may conclude at one of the nation’s more than 1 million restaurant locations or make its way from one of more than 100,000 retail grocers to American homes and gatherings where people enjoy the nation’s bounty.”

Vermonters should be mindful of the key role we are playing in the ongoing success of the industry we see around us every day, in our stores, at farm stands, at farmers’ markets, and in restaurants and eateries we frequent.

That’s a lot of jobs. And a lot of millions, billions and trillions to consider and be proud of.

You can visit www.FeedingTheEconomy.com online to read the entire report, and see how Vermont stacks up to other states.