“Agriculture remains an important part of the Wisconsin economy,” said Steven Deller, a UW-Extension community development specialist and professor in the UW-Madison agricultural and applied economics department. “Even in the most urban parts of the state, agriculture’s contribution is notable.”
The study is a follow-up to one that Deller conducted five years ago using 2007 data. He found that agriculture has risen in importance for the Wisconsin economy, despite the combined effects of the drought of 2012 and the Great Recession. It generated $29 billion more economic activity in 2012 than in 2007 and an additional 59,509 jobs. In 2012 it accounted for 11.9 percent of the state’s overall employment (up from 10 percent in 2007), 10.9 percent of labor income, 10.9 percent of total income, and 16.1 percent of industrial sales.
Here’s how agriculture’s $88.3 billion economic impact breaks down:
- In 2012, on-farm activity contributed 153,900 jobs, $5.7 billion to labor income (wages, salaries and proprietor income), $8.9 billion to total income, and $20.5 billion to industrial sales.
- Food processing contributed 259,600 jobs, $12.9 billion to labor income, $21.2 billion to total income, and $67.8 billion to industrial sales.
- Total agricultural activity contributed 413,500 jobs, $18.6 billion to labor income, $30.1 billion to total income, and $88.3 billion to industrial sales.
- Dairy remains a major Wisconsin industry, with growing strength in dried-condensed-evaporated milk and butter supplies. Dairy farming and dairy processing contribute 78,900 jobs, $3.9 billion to labor income, $7.2 billion to total income, and $43.4 billion to industrial sales.
Here’s how agriculture’s impact increased:
- Sales from farm-related activity and food processing combined rose from $59.2 billion in 2007 to $88.3 billion in 2012; an increase of 49.3 percent.
- Sales related to on-farm activity increased 62.7 percent, from $12.6 billion to $20.5 billion.
- Sales from food processing industrial sales increased from just under $50 billion to $67.8 billion; an increase of 35.6 percent.
About one in nine people working in Wisconsin hold a job related to agriculture, the new study indicates. They include farmers, their employees and those providing them with goods and services—veterinarians, crop and livestock consultants, feed and fuel suppliers, equipment dealers and lenders—as well as those employed in equipment manufacturing and food processing.
The impact varies by region. In southwestern Wisconsin, agriculture accounts for 24,200 jobs or 18.1 percent of total employment, most of it related to on-farm activities. In southeastern Wisconsin, the most urban part of the state, agriculture contributes 50,900 jobs or 4.3 percent of total employment, mostly in food processing.
“When we think of agriculture, we must move beyond focusing within farm gate and consider food processing as an important part of the Wisconsin economic cluster,” Deller said.
It’s also important to look beyond dairying, he adds. “Although one may traditionally think of Wisconsin as the ‘Dairy State,’ the truth is that agriculture is diverse and is likely becoming more diversified across the state. Other parts of Wisconsin agriculture such as the beef industry, vegetables, breweries and more specialized activities like hops, grapes, and wineries are growing in size and importance.”
The full report “Contribution of Agriculture to the Wisconsin Economy: Updated for 2012” is online and can be found at http://wp.aae.wisc.edu/wfp/contribution-of-agriculture-to-the-wisconsin-….
Support for this work was provided in part by the Office of the Dean, University of Wisconsin-Extension, Cooperative Extension; Office of the Secretary, Wisconsin Department of Agriculture, Trade and Consumer Protection; and the Wisconsin Milk Marketing Board.
STATEMENTS
Ben Brancel, Secretary, Wisconsin Department of Agriculture, Trade and Consumer Protection (Media Contact: Jim Dick, Communications Dir. 608-224-5020)
“These updated numbers re-affirm what we have always believed, that Wisconsin’s agriculture industry is healthy, diverse and has a bright future. This report not only highlights the significant impact agriculture currently has on our state’s economy, thanks to the persistent work of our farmers and agribusinesses but also shows the steady growth that’s been accomplished since the last report was issued five years ago. That’s also seen in how the value of Wisconsin agricultural exports has grown since 2010 when the state ranked 17th in the country and now, in the first half of 2014, we rank 12th. The opportunity for future success is great given our current agricultural environment. Based on results of the 2012 Agricultural Census, compiled by the National Agricultural Statistics Service (NASS), the UW-Extension used the same methodologies in finalizing this economic impact report as it did following the 2007 Ag Census. Nothing changed in the way the $88.3 billion impact was calculated. The numbers speak for themselves and they tell the story of a growing Wisconsin.”
Kathryn VandenBosch, Dean, UW- Madison College of Agricultural and Life Sciences (Media Contact: Kathryn VandenBosch, kvandenbosch@cals.wisc.edu, 608-262-2930)
“Wisconsin agriculture is a growth industry in large part because the people involved apply new scientific knowledge and technologies to the best advantage. They are eager to innovate. Students are drawn to this growth — we’ve seen our student enrollments increase by 40 percent over the past ten years. Interest in our short courses, field days and other outreach efforts is also very strong. Our college is very proud of our partnership with the agricultural industry in the state.”
Richard Klemme, Dean and Director, University of Wisconsin-Extension, Cooperative Extension (Media contact: Richard Klemme, 608-263-2775)
“Agriculture continues to be a vital part of Wisconsin’s economy. University of Wisconsin-Extension recognizes that by providing unbiased, research-based programming that creates a robust agricultural economy; supports healthy and safe food systems; and protects valued natural resources. From developing programs to help increase dairy herd profitability to research about new crops to serve as renewable energy sources, UW-Extension helps the state’s agriculture industry remain competitive.”
James Robson, CEO, Wisconsin Milk Marketing Board (Media Contact: Brenda Murphy, office: 608-203-7244, mobile: 608-575-1525)
“Dairy continues to flourish as a strong and vital industry in our state,” said James Robson, CEO of the Wisconsin Milk Marketing Board. “As an organization we are honored to promote and serve the many dairy families and businesses who help generate $43.4 billion dollars for the Wisconsin economy.”
