Study Finds Importance of Agriculture in State

A study by a University of Arkansas Division of Agriculture publication found that agriculture is more important to Arkansas’ economy than in any other state in the Southeast.

Agriculture accounts for more than 22 cents of every dollar generated in Arkansas’ economy.

“Anyway you look at it, agriculture is 20 percent of Arkansas’ economy, and that’s huge,” said H.L. Goodwin, UA agricultural economist. “We wanted to quantify the economic importance of agriculture on the state’s economy and publish a really good description of it that was accessible and useful to business people, policy makers and the general public.

“The report looks at the direct contributions of agricultural production and processing for plant crops, livestock and forestry, as well as agriculture-related industries. We found agriculture contributed 12.3 percent of the gross state product of $64.8 billion and was responsible for one in five jobs in the state.”

Among items found in the study:

• Agriculture accounts for more than 327,000 jobs; poultry production and processing alone provide 16 percent of the state’s agricultural jobs.

• Agriculture pays $8.7 billion in wages, 15 percent of the state’s total payroll.

• The plant crop sector creates $4.5 billion in value, more than 101,500 jobs and $2.6 billion in wages.

• The livestock sector generates $4.1 billion, more than 118,600 jobs and $2.9 billion in wages.

• Forestry generates $4.8 billion, more than 98,700 jobs and $3 billion in wages.