Oregon ag’s economic impact yields jobs, sales
Farmers might be tempted to say they told you so, but a new report from Oregon State University economists says food, fiber and other aspects of state agriculture are linked to $50 billion in Oregon sales and account for 326,617 full- and part-time jobs.
Agriculture held its own when the rest of Oregon’s economy staggered during the recession, and it continues to grow, Extension Economist Bruce Sorte said.
In that sense, farming is like the “good, steady worker” that doesn’t get noticed when other sectors of the economy are doing well, he said.
“It’s kind of like the foundation of your house,” Sorte said. “You don’t think about it much but you’re glad it’s there.”
Ag’s economic impact extends from the farm or ranch into warehousing, transportation, wholesale and retail sales and processing operations, among others. “It’s not just relegated to the soil,” Sorte said.
Sorte said Oregon producers have become much more efficient in the way they use water and other inputs and increased production over the decades even though the number of farms declined: From 40,033 in 2002 to 35,439 in 2012.
“The recent recession seemed to have taken its toll on many of the smaller farms that did not have the reserves or assets to weather the hard times,” the report concluded.
The report, chiefly written by Sorte and OSU Extension Community Economist Mallory Rahe, noted opportunities for continued industry growth. For example, Oregon grows and processes the ingredients for 31 percent of the food and beverages created and served in the state. Increasing that to 50 percent would add $350 million to annual ag sales, according to the report.
Rahe cautioned, however, that the figure is a rough estimate and doesn’t account for opportunity costs or what such growth might mean to existing businesses and to resources such as water. There could be significant reasons for not striving to reach the 50 percent figure, such as a loss of quality, Rahe said.
OSU economists Larry Lev and Bruce Weber, head of the Rural Studies Program, reviewed the work. Oregon Department of Agriculture chipped in $14,525 to help pay for the work, provided statistics and wrote descriptive passages in the first part of the report, Sorte said.
“It’s a good partnership,” he said of the OSU-ODA collaboration.