CALIFORNIA BUSINESS MINUTE
CA Agriculture
08-10-09
Hi, I am Tim Johnson and welcome to the California Business Minute.
A 2008 study by the UC Agricultural Issues Center has documented California
agriculture's significant contribution to the California economy.
Entitled "Agriculture's Role in the Economy," the report estimates the direct
and multiplier effects of agriculture in the state and its regional economies,
as well as a summary of relevant government statistics. Also discussed in the
report is the economic role of agriculture in California relative to other countries.
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The report identifies that in addition to farms; about 90,000 commercial establishments
in California are connected to agricultural production, including farm machinery
manufacturing, food and beverage manufacturing companies and others.
According to the report, in 2002 the combined agriculture production and processing
industry in California directly accounted for $97.7 billion of the state sales output,
3.8 percent of jobs, 2.5 percent of labor income and $39.6 billion (2.9 percent) of
labor and property income and indirect business taxes. Overall, including ripple
effects, agricultural production and processing generated 7.3 percent of all jobs,
5.6 percent of all labor income and 6.5 percent ($90.2 billion) of labor and property
income and indirect business taxes in the state.
The employment multiplier for the California agricultural production and processing
industry in California was found by the Center to be 1.94 in the year 2002, meaning
that for every job in agricultural production and processing an additional 0.94 jobs
are generated in the state. With reference to the combined agricultural production
and processing industry, for every $1 of direct labor income in agriculture, $1.27
additional labor income is generated in the state.
In addition to analyzing the role of agriculture in the state economy, the report
analyses economic effects in the Central Valley, San Joaquin Valley, Sacramento
Valley and Central Coast regions such as the Salinas Valley.
From a global context, the report concludes that, if California were a country, its
agricultural value would rank between fifth and ninth among countries of the world,
depending which currency exchange rates are used, ahead of Canada, Mexico, Germany
and Spain.
I am Tim Johnson and this has been the California Business Minute.
"Agriculture's Role in the Economy," as a stand alone chapter 5 of the Measure of
California Agriculture, is available for free download from the UC Agricultural
Issues Center Web site at http://www.aic.ucdavis.edu
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