Money from agricultural exports doesn’t just go to farmers, there’s a large chain of people involved in that process who all benefit. These people, whose jobs depend on ag exports, are considered a multiplier—a reflection of the amount of economic activity and jobs generated by ag exports.
USDA’s Agricultural Trade Multipliers data product provides estimates about the effect of trade in farm and food products on the U.S. economy. The most recent data is from 2018. For the year 2020, this same data process will be able to evaluate COVID-19’s impact on the ag sector.
Here are the big number takeaways from the report:
- Ag exports hit $139.6 billion
- Additional impacted people and economic activity from ag exports hit $162.9 billion
In total, ag exports created $302.5 billion in economic output in 2018. Therefore, USDA estimates every single dollar earned by ag exports generated another $1.17 of additional economic activity.
The trade, services and transportation sector benefitted the most from agricultural exports, with $88.2 billion from ag exports hitting those industries.
Check out the graphic below for a more detailed breakdown of what industries have the most direct benefit from ag exports. The graphic was created by the USDA Economic Research Service Ag Trade Multiplier.
What countries are buying commodities in 2020.
USDA is tracking exports by commodity. Here’s a look at a few of the bigger crop commodities and the country that is buying the most:
- Soybeans: China 15,238,275 metric tons, compared to 13,406,595 at the same time last year
- Corn: Mexico 13,527,674 metric tons, compared to 14,724,025 last year
- Wheat, unmilled: Mexico 4,124,491 metric tons, compared to 3,142,595 last year
- Cotton, ex linters: Vietnam 779,667 metric tons, compared to 805,815 in 2019
