Feeding America’s economy: Why agriculture still matters

Each year on National Ag Day, we recognize the farmers, workers, and businesses that provide Americans with the safest, most abundant, and most affordable food supply in the world. But agriculture’s importance extends well beyond what ends up on our plates. It is also one of the strongest engines of the U.S. economy. The latest Feeding the Economy report makes that clear. America’s food and agriculture sector generates more than $10.4 trillion in economic activity — nearly 20 percent of total U.S. economic output. Put another way, its economic footprint rivals that of some of the world’s largest national economies. That impact reaches every corner of the country. Food and agriculture support more than 48.7 million jobs — one in five nationwide — including 24.3 million direct jobs in farming, processing, retail, and food service. From farms and factories to grocery stores and restaurants, this supply chain touches every ZIP Code and connects rural, suburban, and urban communities alike. The sector is also growing. Over the past year, its economic impact increased by nearly $894 billion, a gain of almost 10 percent. That growth reflects both the resilience of American agriculture and the value of policies that allow it to compete and innovate. At the same time, the report highlights real challenges. Employment growth has slowed as producers and manufacturers contend with a difficult farm economy and broader cost pressures. Those strains are especially evident at the farm level, where inflation‑adjusted wages per worker have declined over the past decade, even as overall wages across the sector have grown. Farmers form an essential foundation for this system. Practically, it is very challenging for farmers to adapt immediately to economic shocks — including spikes in input costs and volatility in domestic and foreign markets — and future demand drivers like the growing ag bioeconomy. This puts farmers in a situation in which they might not produce profitably for several consecutive years. The entire food system and U.S. competitiveness depend on the long-term economic health of U.S. farmers. We must create a policy environment that mitigates shocks rather than creates them. Food manufacturing shows why agriculture remains so strategically important. With more than 2.28 million workers, it is the nation’s largest manufacturing sector — larger than metal manufacturing and larger than the auto and chemical manufacturing sectors combined. These jobs are often concentrated in rural communities, where processing plants serve as major employers and economic anchors. As policymakers focus on revitalizing American manufacturing, food manufacturing stands out as one of the country’s most important — and often overlooked — industrial success stories. Trade is another critical pillar of agriculture’s economic contribution. Approximately one-fifth of America’s agricultural production is exported. U.S. food and agricultural exports exceed $177 billion, supporting farmers, processors, and rural economies. Recent declines in export values underscore the importance of strong trade relationships and policies that expand access to global markets. The Trump Administration has successfully negotiated new ag market access through its bilateral deals, but there remains uncertainty around how these agreements will be implemented and enforced in the medium- and long-term. Keep in mind that America’s agricultural competitors have been aggressively expanding their agricultural trade opportunities and influence through comprehensive trade agreements, all while the U.S. has not signed a new market-opening free trade agreement since 2007. Agriculture’s contribution also shows up in public revenues. Food and agriculture contributed roughly $1.35 trillion in government revenue last year alone, helping fund priorities from infrastructure and education to national defense. Taken together, the message is simple: agriculture is a national economic powerhouse. Its continued success depends on resilient supply chains, innovation, and policies that promote growth and global competitiveness. As we mark National Ag Day and the release of the 10th annual Feeding the Economy report, it’s worth remembering that the strength of American agriculture is inseparable from the strength of the American economy. America’s farmers, food manufacturers, and the broader agricultural supply chain is essential not only for food security, but for long‑term economic prosperity. John Bode is president and CEO of the Corn Refiners Association, the trade association representing the American corn milling industry, and chair of the Agricultural Policy Advisory Committee, which advises the Department of Agriculture and U.S. Trade Representative on trade policy.