Nonmetro counties in the majority of States would gain jobs from increased demand for U.S. agricultural exports

Nonmetro counties in the majority of States would gain jobs from increased demand for U.S. agricultural exports

U.S. agricultural exports support about 1.1 million full-time, civilian jobs, according to 2017 ERS estimates (based on 2015 data). A recent ERS study considered how U.S. employment might be affected if the demand for these exports increased even further. To find out, ERS researchers used a computational model of the U.S. economy to explore the possible effects of a hypothetical 10-percent increase in foreign demand for U.S. agricultural products. The findings were broken apart between results for metro counties with less direct agricultural activity and nonmetro counties, where most farming occurs. Of the 47 states with nonmetro counties, 39 were estimated to gain jobs from an increase in export demand. The current level of employment in the agri-food sector (agricultural production plus food and beverage manufacturing) was a key factor in explaining the size of the simulation’s regional employment effects. There were 16 nonmetro regions where the agri-food sector accounted for more than 10 percent of total employment, ranging from nonmetro Iowa (11 percent) to Washington State (26 percent). As a group, these regions accounted for just 5 percent of U.S. employment but 32 percent of the total employment gain for the United States resulting from the simulated increase in agricultural exports. This chart appears in the ERS Amber Waves article, "Increased Demand for U.S. Agricultural Exports Would Likely Lead to More U.S. Jobs," released in June 2017.

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