Agriculture and food processing account for 13% of Idaho’s gross domestic product (GDP), or 18% of total economic sales, according to the University of Idaho (UI) Climate-Economy Impacts Assessment. In Idaho, the agricultural industries contributing the most to GDP are Idaho’s top commodities: milk, cattle and calves, potatoes and hay.
Research by the USDA National Agricultural Statistics Service (NASS) 2021 Idaho Annual Statistical Bulletin/Agri-Facts conducts hundreds of surveys every year and prepares reports covering virtually every aspect of U.S. agriculture.
The commodities making the most money in Idaho are as follows:
- All milk produced $3,069,044,000.
- The value of cattle and calves is less than half of milk production with $1,415,074,000.
- Idaho’s famous potatoes produce $1,117,481,000 for the state.
- All hay, raised from the most acres harvested, produced $945,552,000.
Idaho has nearly 25,000 farms and ranches which produce more than 185 different commodities, according to the Idaho State Department of Agriculture’s (ISDA) Idaho Agriculture Facts brochure. The state ranks in the top 10 in the nation in 30 of those commodities. Idaho is the third-largest agricultural state in the West and second in net farm income.
“National Agricultural Statistics Service has the most accurate data when it comes to overall production across the state,” says Sydney Plum, public information officer for the Idaho State Department of Agriculture.
Overall, the latest figures show that Idaho farm GDP grew by 120% from 1997-2021, according to the U.S. Dept. of Commerce and U.S. Bureau of Economic Analysis data. During that same period, total Idaho GDP grew 80% and GDP from Idaho food manufacturing grew by 70%.
From fries to cheese to wine, Idaho is producing quality products to feed the world and fuel our state. Together, agriculture and food processing generates 17% of Idaho’s total economic output in sales and 12.5% of GDP, according to IMPLAN 2019 data. Idaho’s agribusiness creates 12% of jobs. Over 40% of jobs in the Magic Valley are ag businesses.
In 2021, the Idaho commodities ranked No. 1 nationally were: peppermint oil, barley, potatoes and alfalfa hay. Peppermint oil accounts for 40.7% of the U.S., barley occupy 37.1%, potatoes 32.2% and alfalfa hay 8% of the U.S., according to USDA NASS 2022 Annual Statistical Bulletin.
The bulletin reported No. 3 national rankings for livestock and livestock products were: cheese, milk and milk cows.
The 2022 State Agriculture Overview reported milk production at 25,348 (measured in pounds per head), or 16,628,000,000 pounds.
Exports
In 2021, Idaho’s total export was $3.8 billion with $1 billion in food and ag export, which is a record high, according to Idaho Commerce. Idaho seed production is recognized globally. Idaho grows 70% of the world’s hybrid temperate sweet corn seed and ranks among the leading suppliers of alfalfa, field bean, garden bean and Kentucky bluegrass seed in the nation, according to ISDA’s Idaho Agriculture Facts.
Idaho vegetable seed production also includes carrot, onion, turnip, lettuce and many more, reported the Ag Facts brochure. Idaho’s agriculture including food and beverage processing is nearly $20 billion. Nearly 1 out of 6 gallons of milk becomes globally exported dairy products.
In 2021, the top four Idaho agriculture exports were: dairy products, wheat, processed vegetables, and beef and veal, according to USDA ERS 2022 State Ag Exports published in October. Over $2.6 billion of Idaho’s produce, grains, meats, dairy and seeds are sold worldwide. U.S. neighbor Canada occupies 32% of the market share, while Mexico has 15%, according to WiserTrade 2022 data.
Total cash receipts for 2021 was $8,576,652 (dollars 1,000), according to the ISDA. The livestock cash receipts were $4,938,587 with the crops cash receipts totaling $3,638,065. The record-setting year was 2014 with $8,791,276.
Organics
Idaho’s organic production included 177,132 cropland acres and 38,536 pasture/rangeland from 245 farms, which brought in $219,655,000 in total sales in 2021, according to the USDA NASS 2021 Organic Survey.
As of January 2023, the state agriculture overview indicates Idaho’s livestock includes a total head of 2,500,000 cattle and calves (661,000 milk cows), 220,000 sheep and lambs, and 24,000 hogs. There are approximately 8,000 pigs.
Demographics
The average size of farm/ranch operations is 471 acres, which is divided by 11,500,000 acres and 24,400 farms/ranches, reported the 2022 overview. The average age of operators is 56.
ISDA’s Idaho Agriculture Facts reported if Idahoans had to eat all products produced within the state, every resident would need to consume 137 slices of bread, 38 potatoes, 3 pounds of sugar, 2 pounds of cheese, 2 pounds of beef and 1 cup of beans.
Current condition
According to UI Extension’s Financial Conditions for Idaho Ag 2022, the 2023 outlook is showing a recession in the state, the nation and globally. Reasons vary from inflation of feed, land rent, fertilizer, fuel, drought, supply chain, Ukraine war, end of cheap money and strong leading indicators of land and dairy herd.
"While we don’t yet know the final numbers for Idaho’s 2022 ag GDP, everything points to an all-time-high number," says Brett Wilder, area extension educator – farm business management for the University of Idaho. "2022 cash receipts were 2.4 billion dollars higher than in 2021 – a nearly 30 percent increase. While cash receipts are not the only factor impacting GDP, they do trend together. My expectation is that moderation in overall commodity prices will lead to a slight decrease in cash receipts and a moderate decline in Idaho’s ag GDP from 2022 to 2023."
