How Food and Agriculture Power the U.S. Economy

Every year, the Feeding the Economy report offers one of the most complete pictures of how food and agriculture shape the U.S. economy. While we often think of agriculture in terms of farms, crops or livestock, the report makes something else clear: food and agriculture are far bigger than what happens in the field. They form a massive economic engine that supports millions of jobs, generates trillions in activity and delivers essential tax revenue in every state.

In the 2026 report, food and agriculture were tied to $10.4 trillion in economic output — about one‑fifth of everything the U.S. economy produces. The system also supports nearly 49 million jobs across the country. At the heart of it all are farmers and ranchers. Their work provides the raw ingredients that feed families, supply businesses, keep supply chains running and help ensure that the value created from food production stays here at home.

The strength of food and agriculture becomes even clearer when looking at jobs. According to the report, nearly one in every three U.S. jobs is connected in some way to this system.

That might be surprising when you consider how small the on‑farm workforce is. Direct farm employment totals about 2.5 million jobs, less than 2% of the national workforce. But the picture changes when you include the people who turn raw products into food on store shelves — those working in food manufacturing, transportation, distribution, grocery stores and restaurants. Once you add in those sectors, the number of directly employed workers climbs to more than 24 million, or about 15% of all U.S. jobs.

An additional 24 million jobs come from industries that support or benefit from food and agriculture — from trucking and construction to finance, energy and retail. These jobs exist because the food and agriculture system generates spending that ripples across the broader economy.

The wages tied to food and agriculture are just as significant. In 2026, direct food and agriculture activity generated just over $1 trillion in wages. Supplier industries added another $1 trillion, and household spending connected to the sector contributed roughly $900 billion more. Altogether, food and agriculture supported more than $3 trillion in wages and salaries.

With total U.S. wages around $11.7 trillion, that means more than one‑quarter of all earnings nationwide can be traced back to food and agriculture. Farmers and ranchers may be the starting point, but most of the income and jobs are created beyond the farm gate — highlighting how production fuels an entire economic ecosystem.

The economic value of food and agriculture — and the fact that so much of it remains within the U.S. — is essential not just for food security, but for long‑term economic stability. The data show a system that supports nearly a third of all jobs, generates one‑fifth of the nation’s output and contributes a similar share of tax revenue.

But those benefits are not guaranteed.

Some sectors are already feeling pressure. Since 2000, U.S. vegetable production has fallen by about 39% and fruit production by 24%. These declines reflect challenges such as high labor costs, stricter regulations and increased global competition. When domestic production shrinks, the jobs and economic value tied to processing, transportation and supply chains increasingly shift outside U.S. borders.

At its core, this is about much more than food. It’s about whether the economic engine that feeds, fuels and clothes the nation remains rooted in the U.S. — or gradually moves elsewhere.

Daniel Munch is an economist at the American Farm Bureau Federation. This column was adapted from “More Than Food: Agriculture’s Economic Footprint,” an AFBF Market Intel piece.