Agriculture, forestry sectors contribute $105B to Virginia economy: Report

A UVA study pegs the total economic output of the Virginia agriculture and forestry sector at $105 billion in 2021.

The industry, according to the UVA Weldon Cooper Center for Public Service report, represents 11.2 percent of the state’s overall economic output, and the 490,295 jobs in ag and forestry account for 9.4 percent of the total state employment.

The new study indicates that the total economic impact of agriculture and forestry industries has grown since 2017. Over the last five years, which included production and supply chain interruptions in 2020 due to COVID-19, Virginia’s agriculture and forest industries statewide economic impact in 2021 was over $105 billion in total output, compared to the $98.2 billion combined output in 2016.

The total employment impact for the industries rose 3 percent from 478,079 jobs in 2016 to 490,295 jobs in 2021. The total value-added impression of the industries grew 10 percent from $50.1 billion in 2016 to $55.1 billion in 2021.

“This study highlights the important role Virginia’s agriculture and forestry industries play in the Commonwealth’s economy,” Gov. Glenn Youngkin said. “These industries are major employers, and their economic influence is far beyond the farms and forests where most agricultural and forestry commodities are grown and harvested.”

Agriculture alone accounted for $82.3 billion in total industry output, 381,844 jobs and $43.8 billion in value-added impact. Livestock account for approximately 63 percent of farm cash receipts, with poultry, beef, and dairy constituting the largest products.

Crops make up the difference with grains, such as corn, wheat, and soybeans, being the most significant field crops. Greenhouse and nursery products are also important.

Virginia food, beverage, and fiber processors and manufacturers buy many of their agricultural commodity inputs from Virginia farmers. These industries have grown by approximately 1,100 jobs (two percent) over the last five years.

In 2021, Virginia ranked fourth nationally in the production of tobacco, seventh for apples, eighth for peanuts, and tenth for poultry and eggs and trout aquaculture.

“The study executed by the Weldon Cooper Center for Public Service provides a comprehensive representation of the contribution that our agricultural and forestry industries make to the economy of the Commonwealth of Virginia,” said Virginia Secretary of Agriculture and Forestry Matthew Lohr. “Like many industries, Virginia’s agriculture and forestry sectors were profoundly impacted by the pandemic, however both sectors have recovered lost ground and forged ahead to support Virginia’s overall economy.”

The study, led by Dr. Terrance Rephann of The Weldon Cooper Center for Public Service at the University of Virginia, updates previous studies that were done in 2008, 2013 and 2017.