Ag and Food Sectors and the Economy

The U.S. agriculture sector extends beyond the farm business to include a range of farm-related industries. Agriculture, food, and related industries contributed 5.6 percent to U.S. gross domestic product and provided 10.4 percent of U.S. employment; Americans' expenditures on food amount to 12.8 percent of household budgets, on average. Among Federal Government outlays on farm and food programs, nutrition assistance far outpaces other programs.


Food and nutrition assistance programs make up the largest share of USDA outlays

USDA outlays increased by 48 percent from fiscal 2006 to fiscal 2015 (fiscal years begin October 1 and end September 30), with the largest increase coming from food and nutrition assistance programs, which grew especially fast since fiscal 2008, reflecting higher recession-related participation and a temporary increase in per-person benefits from the Supplemental Nutrition Assistance Program (SNAP). An improving economy and expiration of the larger SNAP benefits caused growth of food and nutrition assistance program outlays to slow by fiscal 2012 and decrease in fiscal 2014. Outlays on Federal crop insurance also decreased in fiscal 2014 as extreme weather events subsided and crop prices declined. Commodity program outlays declined in fiscal 2015 with the passing of the new Farm Act in 2014. Food and nutrition assistance accounted for more than 73 percent of USDA outlays in fiscal 2015.