Arizona agriculture and agribusiness contribute $30.9 billion to the state’s economy. A new study by University of Arizona economists quantified a myriad of interesting numbers. The study scope included on-farm production of crops, livestock, and livestock products; agricultural support services; agricultural input suppliers; agricultural processing; and marketing and distribution.

Based primarily on the United States Department of Agriculture’s Census of Agriculture, the $30.9 billion number was calculated by the Department of Agricultural & Resource Economics, University of Arizona Cooperative Extension’s economic team of Claudia Montanía, Dari Duval, George Frisvold, José Quintero and the new number was announced at Arizona Farm Bureau’s Annual Meeting in Tucson today.

Responding to a question about the big number, Economist George Frisvold said, “To be honest, economists don't pay too much attention to that top-level total contribution number. The parts that go into that number I find more meaningful. Yuma is the center of North American winter vegetable production.  Nogales is a center of border food trade.  There's a giant meat and dairy complex in the center of the state that serves the 10th largest metro area in the country. Up north there is public lands ranching and tribal agriculture that feeds into that Central Arizona complex.  Plus, there is even a small but growing winery sector.  The diversity and national importance of Arizona agriculture is really difficult to capture in any single number.” 

Explains the team, “The study estimates the direct contribution of these industries to the state economy, as well as additional economic activity supported through multiplier effects in industries outside of agriculture and agribusiness. Indirect multiplier effects capture economic activity in non-agricultural industries that provide goods and services as inputs to Arizona agribusinesses. Induced multiplier effects capture economic activity in industries that provide consumer goods and services to households. Direct, indirect, and induced effects combined measure the total economic contribution to the state economy.”

While the numbers capture a moment in time, comparing them to the previous number of $23.3 billion shows a growing contribution of our agriculture and agribusiness industry to this desert state, a number that was determined from the 2017 Census.

The analysis was modeled using the IMPLAN Pro 2022 model for Arizona. The state model was customized using the best available, most recent data to more accurately reflect the production and economic context in Arizona. The study relies on several data sources, first and foremost the 2022 Census of Agriculture, the USDA’s most recent Census that was released earlier this year.

 

Editor’s note: Arizona’s Agribusiness System in the State Economy Report.pdf