University of Wisconsin - Extension

Wisconsin's farms and agricultural businesses generate more than $51.5 billion in economic activity and provide jobs for 420,000 people, according to a new study by University of Wisconsin-Extension community development specialist Steve Deller. The research used a state-of the-art economic model to measure how dollars earned from sales of agricultural products multiply in the state economy. Deller is a professor of agricultural economics at UW-Madison.

"This project came about because we believed we needed factual, research-based information to clearly tell the story of agriculture in Wisconsin," said Rick Klemme, program leader for agriculture and natural resources at University of Wisconsin-Extension.

Klemme said Deller's work provided the kind of information that UW-Extension Cooperative Extension and the UW-Madison College of Agricultural and Life Sciences should be putting in the hands of the state's citizens.

"We are especially pleased to work in partnership with the Wisconsin Farm Bureau Federation and the Wisconsin Milk Marketing Board in developing the educational materials that have resulted from this project," he added.

Here's how agriculture's $51.5 billion economic impact breaks down:

… The direct economic effect of agriculture is $28.6 billion. This figure represents the sales of all agricultural products.

… Sales of agricultural products create another $17.6 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 $5.3 billion in economic activity, because people who work in agriculture-related businesses spend their earnings.

"Agriculture is economic power in Wisconsin," said Bill Bruins, president of the Wisconsin Farm Bureau Federation.

"I'm most impressed with the 420,000 jobs agriculture supports and how many new jobs that can be created by a growing agriculture sector. This enforces why it is so important to continue to have a favorable business climate, public policy, and local community support to help agriculture grow in Wisconsin," he added.

About one out of every eight state citizens (12.2 percent) works in a job related to farming. 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. In addition, each new job in agriculture results in the creation of another 1.3 jobs.

About 10 percent of Wisconsin's total income, or $16.8 billion, comes from agriculture. This figure includes wages and salaries, benefits and profits of farmers and workers in agriculture-related businesses. Each new dollar of agricultural income generates another $1.78 in state income.

Wisconsin ranks among the top ten agriculture states. Farmers and processors here produce a wide variety of dairy products, livestock, fruits, vegetables, grains and nursery stock. Families own more than 99 percent of Wisconsin farms.

Future analysis of the data from this study will provide county-by-county economic impact data.

The study was conducted by University of Wisconsin-Extension with funding and support from 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 .