Report shows agriculture has a huge impact on Idaho's economy

By Sean Ellis

Idaho Farm Bureau Federation

POCATELLO – According to a recently released report, agriculture continues to be a major part of Idaho’s economy.

One in every nine jobs in Idaho is tied to the state’s agriculture industry. That means 137,900 jobs in Idaho trace their roots to agriculture.

But that’s not all.

According to a University of Idaho report that was released in early March, the agriculture industry is responsible for 17 percent of total sales in the state, or about $45 billion per year. It also accounts for 12 percent of Idaho’s total gross state product, which is a broad measurement of the value of all goods and services.

The report found that agriculture accounts for more than $8.2 billion in wages in Idaho.

The report – “Economic Contribution of Idaho Agribusiness” – is based on 2024 data and was authored by Phil Watson, a professor at U of I’s College of Agricultural and Life Sciences.

“The contribution of Idaho agriculture to the state’s economy is higher … than it’s ever been,” Watson said. “Even in real terms – adjusted for inflation – the value of Idaho agriculture continues to grow.”

The report found that Idaho agriculture is big and growing. For example, a previous report by Watson based on 2022 data showed ag was responsible for $37.5 billion in sales and 126,800 jobs.

However, the 2022-based report found that ag accounted for 12.8 percent of Idaho’s GSP, which means agriculture’s total share of the state’s economy has dipped a tad.

That’s not surprising given how much Idaho’s overall population and economy have grown in recent years and the 12 percent of total GSP number is still very impressive, Watson said.

“It’s not just ag that’s growing in the state,” he said. “We have growth in a lot of different sectors. Idaho ag is big and getting bigger, but the rest of the state is also growing fast. That’s a good thing. A rising tide can float all ships.”

Farmers, ranchers and others involved in the state’s agriculture industry understand how important ag is to Idaho and the numbers won’t come as a shock to them, said Idaho Farm Bureau Federation President Matt Dorsey, who farms in Canyon County.

That said, he added, the numbers contained in the report are very impressive and should be shared with elected officials and others who might be shocked by them.

“Those are some really big numbers,” he said. “In particular, the fact that agriculture is responsible for one in every nine jobs in Idaho should be shared with as many people as possible.”

The report, which is conducted by Watson every two or three years, is based on several sources, including data from USDA and the U.S. Bureau of Economic Analysis.

It includes the direct and indirect impacts that agriculture has in Idaho.

For example, it would include the impact of farm equipment and fertilizer sales, as well as the economic impact of food processing and other jobs affected by the industry.

“This report does an incredible job of showing just how important farming and ranching is to Idaho,” said Andi Woolf-Weibye, executive director of the Idaho Bean Commission. “Agriculture literally is the backbone of the state’s economy and way of life.”

The report shows that agriculture in Idaho accounts for a much larger part of the state’s overall economy than it does in neighboring states.

It shows that even without including its indirect impacts, agriculture accounts for 7 percent of Idaho’s total GSP.

That is 4.4 times greater than in Washington, 10 times greater than in Nevada, 2.8 times greater than in Oregon, 3.9 times greater than in Utah, 4.1 times greater than in Wyoming, 2.2 times greater than in Montana, and 3.2 times greater than in the United States as a whole.

Agriculture in Washington is a little bigger than it is in Idaho in absolute terms, Watson said, but when you look at it in terms of ag’s percentage of the state’s total GSP, it isn’t even close, he added.

“Agriculture is much more important to Idaho’s economy than it is in Washington (and surrounding states),” Watson said.

For many years, the growth of the entire agriculture industry in Idaho was led by farming and ranching itself – Ma and Pa on a tractor. Ma and Pa are still doing their share of the work in that department, but the impact of the state’s food processing industry is growing faster overall, the report shows.

That’s not a bad thing because it means more of the value-added part of agriculture is being captured within the state, Watson said. Ma and Pa are still producing a lot of farm commodities, but more of these commodities are having value added to them via food processing facilities before they are shipped out of Idaho.

“It’s even nicer that we can capture that next stage of processing of ag commodities within the state instead of sending them to (another state) to get processed,” Watson said.