LANSING – Agriculture contributed $91.4 billion and 923,497 jobs to the state’s economy in 2010, according to a report released Wednesday by the Michigan State University Product Center. But most of both the economic benefit and the jobs come after products leave the farm, the study showed.
The overall numbers showed the sector is growing, at least in terms of its economic effect, said Christopher Peterson, director of the Product Center, in a presentation to the Commission of Agriculture and Rural Development.
The agriculture sector overall had grown 52 percent since the center released its last comprehensive study in 2004, Peterson said. Total agricultural economic activity then had been $60.2 billion.
“That’s very substantial economic activity and growth in economic activity,” Peterson said.
Jobs in the industry did not see the same fate, the report said. Employment fell 10.8 percent from the 1.04 million jobs estimated in the 2004 report.
“The employment change over the six years is not as positive a story as the economic value,” he said. “In wholesale and retail there was a substantial decline in jobs.”
In part, he said, the job loss represented efficiency improvements in some parts of the industry.
The largest sector of the agriculture economy was food wholesale and retail, including grocery stores, restaurants and other establishments selling food. That sector accounted for $51 billion of the total. Of that, $29 billion was direct contribution and $22 billion was indirect activity.
Wholesale and retail also accounted for the largest part of the employment, representing 655,099 jobs, with 482,499 of those directly for a retailer or wholesaler. That total is 15.9 percent down from 2004.
And the vast majority of those jobs are in retail: grocery stores and restaurants. Wholesalers accounted for 61,911 total jobs, 29,179 of those directly for a wholesaler.
Farming contributed $13.1 billion to the state’s economy, including $7.2 billion in direct activity and $5.9 billion in indirect and induced activity, which includes both business to support the farms and business generated when the farmers spend their earnings. That total activity was up 95.6 percent from 2004.
Farms added 104,764 jobs to the state workforce, including 73,726 directly for a farm operation.
And farming actually added jobs, with 1.8 percent more attributable to farms and their indirect economic activity in 2010 than in 2004.
Food processing and manufacturing represented $24.6 billion of the state’s economy, including $14.7 billion directly from those businesses. Those figures also were up, 36.2 percent, from 2004.
Processors and manufacturers increased the workforce as well, with direct and indirect jobs up 11.1 percent to 129,186. Of those jobs, 116,295 were directly for a processor.
But, because some businesses operate as both a farm and a processor (or leather processor, which are counted separately), overall economic contribution from farming and processing was $35.6 billion, with $20.7 billion directly from those businesses.
Within farming, the report showed corn and dairy as the close first and second commodities, with both just over $1.32 billion in direct activity (averaged for 2008-10). Third was soy beans at $819.2 million, followed by horses at $485.2 million.
Dairy also topped processing activity, with dry/condensed/evaporated milk representing $2.3 billion in 2007 and milk and butter representing $1.3 billion.
But second was soft drinks at $2.2 billion. Baked goods represented $1.3 billion that year.
Ornamental plants and turf also made up a significant portion of the agricultural economy, generating $2.5 billion directly and $2 billion indirectly, as well as 20,517 direct and 12,876 indirect jobs.
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