Annual Industry Study Underscores the Vital Role Food & Ag Sectors Play In Feeding Vermont’s Economy
March 22, 2022 | Montpelier, VT – Today, 30 food and agriculture groups released the sixth annual Feeding the Economy report, a historic farm-to-fork economic analysis revealing how these sectors influence the local and broader United States economies. Two years into the COVID-19 pandemic, this year’s study highlights how the industries remained resilient to provide Americans with jobs, economic opportunity and safe food.
This study sheds light for policymakers on how the food and agriculture sector not only feeds Americans, but also feeds the U.S. economy. The economic disruption of the COVID-19 pandemic has only served to further highlight the critical importance of the food and ag industries.
The economic impact study released today shows that 17.77% of the nation’s economy and 29.14% of American jobs are linked to the food and agriculture sectors, either directly or indirectly. Additionally, the analysis broke down the food and agriculture sectors’ economic impact by state and congressional district. Here are the key findings for Vermont in terms of direct impacts from the state agriculture economy:
- Total Direct Jobs: 50,818
- Total Direct Wages: $1.94 Billion
- Total Taxes: $1.7 Billion
- Exports: $135.9 Million
- Total Food and Industry Economic Impact: $8.45 Billion
*See attached for the full Vermont Economic Impact Statistics within the ‘Feeding the Economy’ report, including the total indirect impacts derived from the state’s agriculture economy.
To measure the total economic impact of the sectors, the analysis also includes the direct and indirect economic activity surrounding these industries, capturing both upstream and downstream activity. For example, when a farm equipment retailer hires new employees because farmers are buying more tractors, experts consider the new salaries an indirect impact. Similarly, when a retail associate spends her paycheck, an induced economic impact occurs. Together, these have a multiplier effect on the already formidable direct impact of food and agriculture.
The full analysis underscores the importance the food and agriculture industries have on jobs, wages, exports, and taxes in our nation. The data provided includes the indirect and induced economy activity surrounding these industries.