Agriculture plays a significant role in the US economy, contributing $1.42 trillion to the GDP and adding 22.1 million jobs, with 2.6 million in direct on-farm employment [94376f3d]. The agriculture industry is not only vital for food production but also for various other sectors that rely on agricultural inputs. Innovation in agriculture inputs is a growing trend, with companies like VM Agritech developing new products such as a broad-spectrum fungicide called Curezin [94376f3d].
The top agricultural states in the US are Georgia, Arkansas, and South Dakota [94376f3d]. These states have a strong agricultural presence and contribute significantly to the nation's food production. Wisconsin leads in corn and cranberry production, while Kansas is the top producer of wheat. Minnesota is known for its production of corn, soybeans, and hogs [94376f3d]. These states play a crucial role in meeting the food demands of the country and supporting the agricultural sector.
In addition to food production, the agriculture inputs industry also plays a vital role in the US economy. Prominent companies in this industry include Corteva Inc, Mosaic Co, and CF Industries Holdings [94376f3d]. These companies provide essential inputs such as fertilizers, pesticides, and seeds, which are necessary for efficient and productive farming.
The agriculture industry's contribution to the US economy cannot be overstated. It not only provides food security but also supports millions of jobs and contributes significantly to the GDP. The innovation in agriculture inputs and the presence of top agricultural states further strengthen the sector's importance and impact on the nation's economy [94376f3d].
Alabama is also a significant contributor to the food and agriculture sector in the US. According to the 2024 Feeding the Economy report, food and agriculture in Alabama provides the state with an annual $51.24 billion economic impact and establishes 334,548 jobs statewide. The industries also accounted for $11.89 billion in wages for Alabama workers. When accounting for food, agriculture, and associated businesses, the impact doubles. The three industries combined have produced 651,541 jobs, $30.87 billion in wages, and a staggering annual economic impact of $123.79 billion. Additionally, Alabama’s farm and food sectors are responsible for more than $13.15 billion in state and federal tax contributions [d2fca866] [c88f0a26].
North Carolina's agriculture and agribusiness industry also make a significant economic impact. The industry's economic impact jumped to $111.1 billion, with nearly $8 billion growth in the past year. North Carolina ranks first in the production of sweet potatoes, tobacco, poultry and eggs, second in Christmas trees, turkeys and trout, third in hogs and cucumbers, fourth in peanuts and broilers, and fifth in cotton. This growth is attributed to continued investment in agricultural research, efforts to expand and attract new food manufacturing, and the support of legislators [be900ee9].
Nationally, the food and agriculture sector directly supports nearly 24 million jobs, which is over 15% of total U.S. employment. It is also responsible for over $9.6 trillion of the country’s economic activity – that’s 20% of total U.S. output [d2fca866].
Agricultural exports fell by $17 billion last year and are expected to decline by $8 billion this year. US Sen. Thomas Tillis and other farm-state senators attribute the decline to an unambitious US trade strategy. North Carolina State University economist Mike Walden's analysis shows that the agriculture sector generates over $100 billion in economic impact and employs nearly one in five North Carolina workers. The livelihoods of many North Carolinians depend on international trade. The American Enterprise Institute study highlights the negative impact of tariffs and restrictions on agricultural exports. Tillis and the other senators advocate for a default policy of free trade and opening export markets. John Hood, a John Locke Foundation board member, supports the call for higher exports as it would benefit North Carolina [b5150f70] [d25fbc44].
The economic impact of agriculture in Alabama and North Carolina is significant, with both states contributing billions of dollars to their respective economies. The agriculture industry not only provides jobs but also supports related sectors and ensures food security. However, the decline in agricultural exports is a concern, and policymakers are advocating for a more ambitious trade strategy to boost exports and support the livelihoods of farmers and workers in the sector [b5150f70].