In this article, we will take a look at the top 15 agricultural states in the US. If you want to skip our detailed analysis, you can go directly to the Top 5 Agricultural States in the US.
US Agricultural Industry: An Overview
The agriculture industry in the US plays a pertinent role in the economy of the country. According to a report by the US Department of Agriculture, in 2022, agriculture and related industries contributed $1.42 trillion to the GDP of the country. The large contribution corresponded to 5.5% of the overall GDP. The hefty amount of $223.5 billion came directly from the outputs of America’s farms and accounted for 0.9% of the global GDP. Although agriculture directly contributes a certain percentage, 0.9%, to the GDP, its overall impact on the economy is greater than this percentage suggests. This is because various sectors connected to agriculture depend on agricultural inputs to create additional value or output including food and beverage manufacturing, food and beverage stores, and food services.
In 2022, the agriculture and food sector added 22.1 million jobs, comprising 10.4% of total employment in the country. Specifically, direct on-farm employment accounted for 2.6 million jobs, which represents 1.2% of total US employment. Another 19.6 million jobs were supported by employment in industries related to agriculture and food. The largest portion of these jobs, around 12.7 million, was in food services, including eating and drinking establishments, while food and beverage stores supported 3.3 million jobs. The remaining agriculture-related industries contributed an additional 3.5 million jobs to the economy.
One of the latest trends in the agriculture industry is innovation in agriculture inputs. The agricultural inputs include seeds, fertilizers, pesticides, machinery, equipment, and other materials essential for farming and crop cultivation. VM Agritech is a notable company introducing innovation. VM Agritech has developed Curezin which is a broad-spectrum fungicide that helps protect farmers’ crop yields. The product will help farmers in specialty agriculture, professional turfgrass, and landscape ornamentals. Curezin has been patented in 56 countries and is set to be made available in 2024.
Prominent Companies in Agriculture Inputs Industry
“Net cash from operations was also $2.8 billion and free cash flow was $1.8 billion. These results reflect a healthy nitrogen supply demand balance and global energy spreads that favor our low cost production base in North America. They also represent outstanding execution by the CF Industries team. We worked safely, ran our plants well, and navigated dynamic industry conditions. Our investments in people, safety and reliability have built the industry’s highest performing manufacturing network, as you can see on Slide 6. Looking ahead, over the next four years, confirmed construction of new nitrogen production capacity is not sufficient to keep pace with the historical nitrogen demand growth rate of roughly 1.5% per year in traditional applications.”
Top 15 Agricultural States in the US
Our Methodology
To make our list of the top agricultural states in the US, we have used the data from the US Department of Agriculture. We have used the share of US receipts for all commodities as our main metric. The metric refers to the proportion of total cash receipts generated by each state from the sale of all agricultural commodities in the United States. It represents the contribution of each state to the overall agricultural economy of the nation. Therefore, a state with a larger overall agricultural contribution will be ranked higher among the top agricultural states in the country. The latest data available for the metric is for 2022. We have used the State receipts for all commodities as our secondary metric. The metric shows the revenue generated from the sale of all agricultural products within a state. It presents the output of the state in financial terms. The list has been arranged in ascending order of the primary metric.
Top 15 Agricultural States in the US
15. Georgia
Share of US Receipts For all Commodities in 2022: 2.4%
State receipts for all commodities: $13.07 Billion
Georgia is a significant agricultural state in the United States, known for its diverse range of agricultural commodities. Some of the popular agricultural products from Georgia include broilers, cotton, and peanuts. In 2022, the state had a 2.4% share of the US receipts for all commodities.
14. Arkansas
Share of US Receipts For all Commodities in 2022: 2.6%
State receipts for all commodities: $13.9 Billion
Arkansas agriculture is a vital component of the state’s economy, contributing significantly to its overall economic output. With a diverse landscape and climate, Arkansas produces a wide variety of agricultural commodities, including rice, and soybeans. It is one of the top agricultural states in the US.
13. South Dakota
Share of US Receipts For all Commodities in 2022: 2.6%
State receipts for all commodities: $14.13 Billion
South Dakota’s agriculture industry is a cornerstone of the state’s economy, characterized by a diverse range of agricultural products. The state’s agricultural sector is known for its key products, including corn, and soybeans. South Dakota’s agriculture industry is a vital sector that not only sustains local communities but also contributes significantly to the broader agricultural landscape of the United States.
12. Missouri
Share of US Receipts For all Commodities in 2022: 2.8%
State receipts for all commodities: $14.9 Billion
Missouri’s agriculture industry is a vital component of the state’s economy, characterized by a rich tradition and a diverse range of agricultural commodities. It is one of the top agricultural states in the US. In 2022, the state contributed 2.8% to the total US receipts for all commodities.
11. Ohio
Share of US Receipts For all Commodities in 2022: 2.9%
State receipts for all commodities: $15.42 Billion
Ohio agriculture is a vital sector that significantly contributes to the state’s economy and cultural identity. Ohio’s agricultural industry plays a crucial role in providing jobs and producing a diverse range of commodities. Ohio is a leading producer of cattle and dairy products.
10. Wisconsin
Share of US Receipts For all Commodities in 2022: 3.1%
State receipts for all commodities: $16.61 Billion
Wisconsin agriculture is a significant sector of the state’s economy. It is one of the top agricultural states in the US. In 2022, the state accounted for 3.1% of all US receipts for all commodities. Wisconsin leads the United States in the production of corn and cranberries.
9. North Carolina
Share of US Receipts For all Commodities in 2022: 3.1%
State receipts for all commodities: $16.86 Billion
North Carolina’s agriculture industry is a significant contributor to the state’s economy, with a diverse range of agricultural products. The state ranks highly in the production of various commodities including sweet potatoes. North Carolina’s agricultural sector is known for its diversity, innovation, and commitment to sustainable practices.
8. Indiana
Share of US Receipts For all Commodities in 2022: 3.4%
State receipts for all commodities: $18.34 Billion
Indiana agriculture is a vital component of the state’s economy. The state’s agricultural sector contributes significantly to Indiana’s economic health. The state produces a wide assortment of commodities including soybeans and corn. It is one of the top agricultural states in the US.
7. Kansas
Share of US Receipts For all Commodities in 2022: 4.4%
State receipts for all commodities: $23.52 Billion
Kansas agriculture is a vital and thriving sector that plays a significant role in the state’s economy. The state leads the nation in wheat production and is a major producer of grains as well. Kansas agriculture is not only a key economic driver in the state but also contributes to the overall US economy. In 2022, the state made up a 4.4% share of US receipts for all commodities.
6. Minnesota
Share of US Receipts For all Commodities in 2022: 4.8%
State receipts for all commodities: $26.01 Billion
Minnesota’s agriculture industry is a significant contributor to the state’s economy, with a rich history and diverse range of agricultural products. It is one of the top agricultural states in the US. Minnesota is known for being a top producer of commodities including corn, soybeans, and hogs.
Click to continue reading and see the Top 5 Agricultural States in the US.
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Disclosure: None. Top 15 Agricultural States in the US is originally published on Insider Monkey.