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U.S. Agricultural Trade Boosts Overall Economy

by William Edmondson

Outlook No. (FAU-124) 16 pp, April 2008

U.S. agricultural trade generates employment, income, and purchasing power in both the farm and nonfarm sectors. Each farm export dollar earned stimulated another $1.65 in business activity in calendar year 2006. The $71.0 billion of agricultural exports in 2006 produced an additional $117.2 billion in economic activity for a total economic output of $188.2 billion. Agricultural exports also generated 841,000 full-time civilian jobs, which include 482,000 jobs in the nonfarm sector. Farmer’s purchases of fuel, fertilizer, and other inputs to produce commodities for export spurred economic activity in the manufacturing, trade, and transportation sectors.

Keywords: agricultural trade, exports, imports, U.S. farm sector, multipliers, output, employment, income, food processing, bulk, nonbulk

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Last updated: Tuesday, February 19, 2013

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