Arizona's Grain Powerhouse: Fueling a $2.2 Billion Economic Engine in the Desert State
Author
Published
10/8/2025
Looking out at Arizona’s vast agricultural fields, where irrigation channels carve life from arid soil, the state's grain production stands as a cornerstone of agricultural resilience and economic vitality. Despite challenging conditions and slumped commodity prices, Arizona harvested 4.28 million bushels of corn and 1.22 million bushels of barley in 2024, underscoring its role as a key player in the Southwest's grain belt.
These crops, vital for livestock feed in the dairy and cattle sectors, power not just farms but an entire economic ecosystem. A groundbreaking new study from the National Grain and Feed Association (NGFA), titled The Harvest Economy, spotlights Arizona's and America’s outsized impact: the grain and feed industry in Arizona alone generates $2.2 billion in economic output and supports 6,867 jobs, weaving threads of prosperity through rural communities and urban supply chains alike.
Arizona's small grains industry bolsters soil health, supports local food processing, and feeds the nation's livestock. The NGFA's analysis, conducted by John Dunham & Associates, reveals that nationally, the U.S. grain and feed sector contributes a staggering $401.7 billion in total economic output, equivalent to 1.3 percent of the country's GDP. But for Arizona, with its $30.9 billion agriculture-driven economy, the grain and feed segment punches above its weight, amplifying the state's overall agribusiness surge of 32 percent since 2017.
“Grain and feed companies transform America’s harvest into economic opportunity,” said NGFA President and CEO Mike Seyfert. “This new study quantifies what many of us already know—that our industry is essential to rural communities, domestic and global food security, and the U.S. economy.”
In Arizona, Seyfert's words resonate deeply. Grains like corn and barley serve as the backbone for feed, sustaining herds that generate billions in cash receipts annually. The ripple effects extend to transportation hubs in Phoenix and Tucson, financial services in Scottsdale, and even tech-infused precision agriculture innovating water-efficient yields.
At the heart of this engine are the 9,683 grain and feed facilities scattered across the U.S., with Arizona hosting a vital cluster that directly employs thousands. Nationwide, these sites support 175,737 direct jobs, where workers earn an average of $84,768 annually, a figure that in Arizona translates to high-wage roles in handling, storage, and distribution amid the state's unique desert logistics. But the true magic lies in the multipliers: supplier industries, from trucking firms hauling grain across I-10 to equipment manufacturers in Yuma, add another 612,000 jobs nationally. Induced spending by these employees—on housing, dining, and retail—creates 372,000 more, fostering vibrant local economies. In Arizona, this manifests as bolstered communities in Maricopa and Pinal counties.
Zooming out, The Harvest Economy paints a portrait of nationwide interdependence. The industry sustains 1.16 million jobs, $85.9 billion in wages and benefits, and $32.7 billion in federal, state, and local taxes, funds that rebuild schools, pave roads, and secure food supplies. States like Iowa ($43.1 billion, 107,553 jobs) and Illinois ($34.5 billion, 94,588 jobs) lead the pack, their Corn Belt dominance fueling exports to Asia and ethanol plants. Minnesota follows with $37.3 billion and 99,112 jobs, while Missouri's $35.0 billion impact underscores the Mississippi River's role as a grain artery.
Yet Arizona's $2.2 billion contribution, though modest in scale, is mighty in context: it represents a lifeline for a state where water scarcity demands every bushel count.
Delaware surprises with $2.3 billion and 8,261 jobs, thanks to its poultry feed demands, while California's $17.9 billion powerhouse reflects the strong agriculture state that it is. Texas clocks in at $20.4 billion with 57,438 jobs, blending grains with oilfield synergies. Even smaller states like Alaska ($0.3 billion, 721 jobs) and Hawaii ($0.2 billion, 721 jobs) benefit from imported grains supporting tourism-driven fisheries and livestock.
What sets Arizona apart is its innovation edge. Facing drought, farmers here deploy drip irrigation and drought-resistant hybrids, yielding grains that not only feed local dairies but also export across the country and internationally. Arizona is home to Desert Durum, a registered trademarked grain that Italy buys in tank loads for their pasta making.
The NGFA study highlights how these efficiencies amplify economic returns: for every dollar invested in Arizona's small grains, multipliers generate additional output through local businesses.
As the NGFA rolls out its revamped website at ngfa.org, users can dive deeper into state-specific fact sheets and congressional district breakdowns. Arizona's profile there will illuminate how the industry's 6,867 jobs span from farmhands in Safford to logistics pros in Mesa.