Agriculture and Natural Resources
Part of Cooperative Extension, UW-Extension
www.uwex.edu/ces/ag
Contact: Dave Williams, (608) 262-9309, [email protected]
Steve Deller, (608) 263-6251, [email protected]
John Shutske, (608) 262-4591, [email protected]
Agriculture generates $59.16 billion and 353,991 jobs in Wisconsin
Madison, Wis. — Wisconsin’s farms and agricultural businesses
generate $59.16 billion in
economic activity and provide jobs for 353,991 people, according to a
recent study conducted
by University of Wisconsin-Extension based on data for 2007.
The study shows that Wisconsin agriculture contributes in a
significant way to the state’s
economic base despite the acute financial pressures caused by low
prices for several
products including milk and cheese as well as high input costs. The
study’s findings indicate
agriculture’s economic activity increased 14.9 percent, up from $51.5
billion, from a similar
study conducted in 2004 using data for 2000.
“This study clearly demonstrates agriculture’s huge role in our
state’s economy and the
importance of having a diverse agricultural portfolio. No other sector
is so broadly based
across the entire state,” said Rod Nilsestuen, Secretary of Wisconsin
Department of
Agriculture, Trade and Consumer Protection.
Here’s how agriculture’s $59.16 billion economic impact breaks down:
The direct economic effect of agriculture is $38.8 billion. This
figure represents the
sales of all farm products and value-added products.
Sales of agricultural products create another $13.6 billion in
business-to-business
purchases for items such as fuel, fertilizer, feed, farm equipment,
veterinary services
and crop consultants.
This business-to-business activity then generates another $6.7
billion in economic
activity, because people who work in agriculture-related businesses
spend their
earnings.
“This study shows that Wisconsin is an incredibly diverse agricultural
state that makes many
contributions to our food supply and economy,” said Bill Bruins,
president of the Wisconsin
Farm Bureau Federation. “This diversity has helped agriculture and
many of our rural
communities to stabilize and even grow.”
The research, conducted by Steve Deller UW-Madison professor of
agricultural
economics/UW-Extension community development specialist and David
Williams, UWUniversity
of Wisconsin, U. S. Department of Agriculture and Wisconsin counties
cooperating. UW-Extension provides equal opportunities in employment
and programming including Title IX and ADA
Extension associate professor and assistant program leader for
Agriculture and Natural
Resources, uses a state-of the-art economic model to measure how
dollars earned from sales
of agricultural products multiply in the state economy. The study also
provides an historical
look at several economic measures of Wisconsin agriculture and a first
of its kind look at the
relative strengths of clusters of various agriculture sectors.
“This work represents the very best in the partnership between
UW-Extension and the applied
research in the College of Agricultural and Life Sciences here at
UW-Madison,” said Rick
Klemme, Dean and Director of UW-Extension, Cooperative Extension.
Molly Jahn, Dean of UW-Madison’s College of Agricultural and Life
Sciences added, “These
data show the strengths within Wisconsin agriculture and the potential
opportunities of our
various sectors helps us to provide targeted education, research and
Extension leadership to
the many stakeholders and audiences we serve through our many
programs.”
James Robson, Chief Executive Officer, Wisconsin Milk Marketing Board,
Inc., said, “This
new report is important because it underscores the tremendous economic
contribution that
our dairy industry makes to our communities and state every year. The
milk that’s produced
on our dairy farms is the starting point for a $26 billion dairy
business that provides jobs,
supports our local economies and gives our cheese and dairy processors
the ability to craft
more than 600 varieties, types and styles of award-winning cheese and
hundreds of other
nutritious dairy and food products. During the present economic
downturn, it’s important to
remind all state residents that the future success of America’s
Dairyland begins on our dairy
farms.”
About one out of every ten state citizens (10 percent) works in a job
related to agriculture.
These occupations include farmers, farm employees, veterinarians, crop
and livestock
consultants, feed and fuel suppliers, food processors, machinery
manufacturers and dealers,
barn builders and agricultural lenders. Every job in agriculture
supports an additional 0.89 job
elsewhere in Wisconsin’s economy.
About 9 percent of Wisconsin’s total income, or $20.2 billion, comes
from agriculture. This
figure includes wages and salaries, benefits and profits of farmers
and workers in agriculturerelated
businesses. Each new dollar of agricultural income generates another
$1.24 in state
income.
The study confirms the tremendous strengths that Wisconsin has in many
sectors including
dairy production, dairy product manufacturing and animal production
and suggests areas for
future policy discussion to promote a stable and growing agricultural
economy.
Possible plans for future analysis of this data include a more
in-depth assessment of regional
and county-by-county economic impacts to help policy makers and others
as they plan for the
future of Wisconsin agriculture.
The study was conducted by University of Wisconsin-Extension in
cooperation with the
Wisconsin Farm Bureau Federation, Wisconsin Milk Marketing Board,
Wisconsin Agriculture
in the Classroom and the Wisconsin Department of Agriculture, Trade
and Consumer
Protection. You can read the research report, “Agriculture and the
Wisconsin Economy” on
line at http://www.uwex.edu/ces/ag/wisag.