Agriculture, economy linked in Iowa for near future

Christy Hemkens

Iowa’s dependence upon agriculture is beneficial to the state and creates a wide range of future development options, according to a report released recently by Iowa State.

A study funded by the Coalition to Support Iowa’s Farmers and released by Iowa State on October 4, demonstrates the extent to which Iowa’s agricultural economy is integrated into the state’s economy as a whole.

“The study shows that the agri-food industry continues to be broadly and deeply integrated throughout the Iowa economy,” says Mark Imerman, research associate in the department of economics and a member of the team that put the study together.

According to the study, crop and livestock farming directly supports one in 15 Iowans, and one of every 10 Iowans is employed in some way by farming, food processing or farm input industries.

“The study’s key finding is not that Iowa is dependent upon agriculture, but rather that it is agriculturally capable,” said Kirk Leeds, executive director of the Iowa Soybean Association and president of the farmer’s coalition’s board of directors.

“Iowa’s citizens are able to reap the advantages of that capability,” Leeds said.

The study also reported that more than 18 percent of Iowa’s total value added is contained in agri-food products exported from the state.

“Value added” is a measure of the actual value added to the economic system by the production process after any inputs are subtracted.

Aaron Putze, executive director of the farmer’s coalition, said each of the state of Iowa’s four main commodities – hogs, cattle, corn and soybeans – play a very important role in the agriculture economy.

“All commodities play a critical role because they are so interdependent,” Putze said.

“All the components are critical.”

In addition to these statistics, the study found that the state of Iowa isn’t negatively dependent upon its agricultural economy, but is taking advantage of agriculture and using it to the state’s advantage.

Putze said Iowa’s economy will be linked with agriculture for the foreseeable future.

“As Iowa’s economy continues to grow, agriculture will play an important part in that growth,” he said.

“Iowa’s agriculture is so integrated into the overall economy that as the economy grows, agriculture can only continue to grow along with it.”

Putze also said that he fully realized the benefits of private and public organizations working together to produce this type of study.

“We benefited a great deal from Iowa State’s expertise,” he said.

“Iowa State was able to conduct this study more efficiently and effectively than we would have been able to do on our own,” Putze said.