Arizona’s agricultural industry contributes $30.9 billion to the state economy

YUMA, AZ (AZFamily) – Arizona’s agriculture secures the nation’s food supply and massively supports the state’s economic growth, according to a new study from the University of Arizona’s Agriculture Cooperative Extension.

The report shows that the agricultural industry contributed $30.9 billion to the state’s economic activity. It shows a 32% increase from the last study conducted in 2017 as part of the USDA’s Census of Agriculture, which takes place every five years.

Inflation is contributing to the increase, according to Professor George Frisvold, who worked on the study, but he also said the industry’s subtle growth across the state has been the deciding factor.

Frisvold said one of the most significant increases has been agricultural trade with Mexico, which he said has helped create jobs in southern Arizona.

“All of these products come to Nogales from Mexico, and the agricultural trade is the largest private employer in Nogales,” Frisvold said. “It’s another source of winter vegetables and jobs in the state. Nogales and Santa Cruz County are a major wholesale and shipping hub.”

The industry employs 160,000 people nationwide. The main agricultural enterprises are wholesale trade, vegetable and melon cultivation, agricultural support services, bread and baked goods, and liquid milk production.

The data also shows that Arizona’s agricultural economy is still growing.

“There are different areas of the state, different areas that make different important contributions. These are success stories. Yuma is a success story, Nogales is a success story, there is growth in wineries, there is growth in tribal vegetable production. These are success stories.”

Frisvold said that while overall conditions were good, there were also agricultural challenges, including water availability.

“There are challenges in the center of the state. “How are people adapting to water cuts in the Colorado River,” Frisvold said.

Another major challenge is the availability of workers.

“The reason Arizona is so productive is because it has a workforce. People focus on, “Oh, there are people coming across the border, that’s bad, that’s a cost,” but in Yuma you see the economic benefit, so the question is whether there will be work disruptions “, he said.

Frisvold said those challenges won’t go away, but Arizona has managed to overcome them.

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