New report takes pulse of Oregon agriculture

Oregonagriculture’s large impact on the state’s economy is reaffirmed by an updatedanalysis and report released by Oregon State University.

The OSU study,commissioned by the OregonDepartment of Agriculture, quantifies thecontributions of producers, processors, and others in a variety of economic snapshotsranging from sales to employment.

“We’vetalked consistently about the importance of agriculture to Oregon’s economy andthe numbers found in OSU’s report validate what has been said,” says ODADirector Katy Coba. “What we think ishappening in agriculture is indeed takingplace.”

Thereport,Oregon Agriculture, Food andFiber: An Economic Analysis, builds on previous OSU studies done in 2008and 2011 to assess agriculture’s economic footprint and ripple effect on thestate. It detailsthe entire cycle of agriculture– from the farm to theconsumer– and connects the flow of dollars throughout the system, capturingproduction, processing, distribution, wholesale, retail, and food service.

Usinga variety of currently available data, the report generally shows that theindustry continues its steady growth. Specifically, it finds agriculture isdirectly and indirectly linked to about $50 billion in sales ofgoods andservices, which is more than 13 percent of the statewide total of salesinvolving all industry sectors. The report also finds that Oregon agriculturedirectly or indirectly supports more than 326,000 full or part-time jobs,making up almost 14 percent of total jobs in the state. Overall, Oregonagriculture is responsible for $22.9 billion or 10.6 percent of the net stateproduct.

“Whichevermeasurement you want to use, those are all big numbers that show agriculture’shuge contribution to Oregon’s economy,” says Coba.

Spreadthroughout the report are compelling stories captured by statistics.

Whilethe number of Oregon farms, ranches, and total farm acreage has decreased inrecent years, the output of Oregon farms has increased 39 percent to $5.7billion dollars between 2010 and 2014.

“Ourproducers aren’t really getting paid that much more for their crops, so they’vebecome much more productive, and those numbers reflect that,” says Coba.

Measuringefficiency is another byproduct of the OSU study, according to its primaryauthor.

“Oneof the most important points in this report is the tremendous work farmers andranchers have done by improving the use or efficiency of their inputs likewater, land, and chemicals,” says OSU ExtensionEconomist Bruce Sorte.

“Oregonwas ranked 46th out of the 50 states in terms of agricultural totalfactor productivity in 1960 and it advanced to 15thwith the highest level of improvement among all the states. Farmersandranchers are still improving each year working withresearchers in universities, government, andbusinesses. This is very good news for consumers, producers, andecosystems.”

Asection of the report focuses on processing– adding value to what isagriculturally produced. In 2013, more than $12 billion was added to thefarmgate sales of Oregon-grown food and fiber by processors andfood services.

Frozen food manufacturing tops the list of processing sectors, in terms of sales. followed by breweries, fluid milk manufacturing, canned fruits and vegetables,wineries, and cheese manufacturing.

Sorteunderscores the importance of value-added agriculture while saying more can bedone.

“Addingvalue– increasing the value of wheat at ten cents a pound to flour at fiftycents a pound, providing water to a dryland farm so it can grow an irrigatedcrop, or Oregon fruit or beef served in a restaurant–is such an important anddifficult process. If we encourage these value-added efforts for Oregon’sexports and as substitutes for imports of food to Oregon, we could at leastdouble the already sizable value-addedcontribution of the agriculture, foodand fiber industry of $23 billion.”

Thereport looks at distribution and marketing. A section on farm direct salesquantifies the growing interest by consumers who want to buy local food. Thereport also captures the jump in organic agriculturesales, now up to 4 percentof total ag sales in Oregon. A look at ag exports indicates how “new dollars”brought into Oregon from international customers and consumers from across theUS help the state’s economygrow.

“Agricultural,food, and fiber production and processing account for 10.9 percent of all Oregonexports, or a total of $15.2 billion in sales,” says Mallory Rahe, ExtensionCommunity Economist and report co-author.

Thereport specifically notes that the more “finished” the good or service isbefore it is exported or used to substitute for an import, the greater thevalue added to the state’s economy.

Thestate’s agricultural leaders are encouraged by the report’s findings.

“Agricultureis the handshake between the urban and rural communities in Oregon,” says DanArp, dean of OSU’s College of Agricultural Sciences. “Our agriculturalproducers and processors sustainablyprovide the high quality foods and beveragesthat all Oregonians take pride in and enjoy daily. This report demonstratesthat agriculture also has a profound economic impact on the state both in termsof sales and jobs.Agriculture is indeed key to Oregon’s economic success.”

ODADirector Coba concurs.

“Agricultureis a very important part of Oregon,” she says. “In terms of population, thenumber of farmers and ranchers in our state is small. Yet, when you look at thecontribution they make to both our economyand our environment, things we prideourselves on, agriculture has a tremendous impact on the state.”

Asfor the report itself, don’t expect it to simply gather dust while sitting on ashelf in someone’s office. The study can be used to convince policy makers thatwhat is generally good for agriculture is good for theOregon economy.

Simplyput, agriculture is more than just farming. For the 1-in-7 Oregonians who havea job connected to agriculture, the report should make them feel good abouttheir contribution to the state’seconomy.

Fora copy of the report, go to http://agsci.oregonstate.edu/biblio/oregon-agriculture-food-and-fiber-economic-analysis-0