A study by AREC faculty, Bruce Sorte, and graduate student, Paul Lewin, link 15% of Oregon’s economy to agriculture, despite both a declining number of farms and farmland acreage. Sorte and Lewin recently published a report entitled “Oregon Agriculture and the Economy: An Update,” which was featured in an article in the Natural Resource Report and Capital Press newspaper. The study estimates agriculture’s “economic footprint,” as well as calculates the extent to which the state economy depends on agriculture and its economic impacts. The report found that agriculture directly and indirectly supports 12% of total Oregon jobs.
Agriculture retains a strong link in the Oregon economy for many reasons including increasing farm and ranch production, value-added processing in areas including breweries, wineries, distilleries, and frozen food manufacturing, as well as both agricultural exports which bring in “new dollars,” and a significant demand and market for local products. Furthermore, the report shows the agriculture industry’s contribution to the state economy has increased since publishing the last edition of the report, in 2008. Sorte believes the report shows there is real promise in the future of natural resource industries in Oregon’s rural communities. He also believes that demand for local products will continue to grow in the coming years, as younger generations become more concerned with the source of their food than previous generations. As demand for local products is filled by local producers and Oregon begins to fill a gap in demand for products that were previously produced elsewhere, our economy continues to be supported.
The importance of this report will not go unnoticed. It will be used at many levels throughout the state including community organizations and city governments, agricultural producers, and to show state policy makers that what is good for Oregon agriculture is also good for our economy.
Link to study: http://ruralstudies.oregonstate.edu/sites/default/files/pub/pdf/OregonAgEconomyAnUpdate.pdf
Link to Natural Resource Report article: http://naturalresourcereport.com/2011/02/study-shows-15-of-economy-tied-to-ag/