Ag Impact in County: $35.1 Million in 2021

University of Tennessee Extension recently released reports outlining the estimated agricultural contributions of all 95 counties in Tennessee.

The updated reports highlight agriculture’s impact on the output and employment of each county in 2021, providing key information for local and regional policymakers, the agricultural community and general public.

This analysis accounts for the total effect of county agriculture throughout the Perry County economy. Economic impact is measured in terms of output or revenue (the value of sales of all local goods and services) and employment.

Agriculture is defined as crop and livestock production (i.e., farming); food and fiber processing such as ice cream plants and textile mills; farm inputs such as fertilizer plants and feed mills; and forestry-based products such as sawmills and paper mills.

Multiplier Effect is the impact on the non-agricultural part of the economy. Examples include farmers and other agricultural businesses purchasing local inputs (e.g., utilities), and local spending by agricultural workers and owner-operators.

Output means revenue (value of sales) of all local goods and services.

For Perry County in 2021:

–Total direct agricultural output is estimated at $35.1 million. With multiplier effects, agricultural output had a total estimated economic impact of $43.2 million.

–These results mean that for every dollar of direct output from agriculture, the total economic impact on the county’s economy is $1.23 (i.e., the 43.2 divided by the 35.1).

–303 workers were employed in county agriculture. With multiplier effects, an estimated 366 jobs are generated by county agriculture, or one direct agricultural job leads to 1.21 jobs in the county.

“While agriculture continues to make an important contribution to economic activity, there have been few efforts to estimate agriculture’s contribution to local economies for every county in a given state,” saId author David Hughes, professor and Greever Chair in the Department of Agricultural and Resource Economics.

“These reports represent UT Extension’s ongoing efforts to identify and meet key needs in Tennessee.”

“The reports document the continuing importance of agriculture at the county level in Tennessee, even in highly urbanized areas,” said Hughes.