WASHINGTON — The US food and agriculture sector’s total output declined from a year ago but still accounts for almost a fifth of national economic output, according to the 2025 Feeding the Economy study released by 36 food and agriculture trade groups.

The food/ag industry now generates $9.53 trillion in total output, down roughly 1% from more than $9.6 trillion in 2024, the report said. Currently, the sector accounts for 18.7% of US gross domestic product, compared with approximately 20% last year.

“Agriculture’s impact all the way through the economy is enormous,” said Roger Cryan, chief economist for the American Farm Bureau Federation. “The Feeding the Economy project helps show us how critical farming is to America’s economic and national security and to the well-being of the American people.”

A “farm-to-fork” analysis, Feeding the Economy gauges the direct and indirect economic contributions to US economic output, jobs, wages and taxes by any business involved in food agriculture, food manufacturing, food wholesaling or food retailing.

The research, conducted by John Dunham & Associates and funded by The Goodstone Group, measures the number of jobs in food- and agriculture-related industries, wages paid to employees, value added and total output. Also reflected in the findings are the economic impact of the suppliers that support food and agriculture businesses, as well as industries supported by the induced spending of direct and supplier industries.

“Agriculture is the backbone of the US economy,” said Chandler Goule, chief executive officer of the National Association of Wheat Growers. “These numbers show the importance of ensuring our nation’s producers have the long-term security they need to run successful operations. The research completed by Feeding the Economy is instrumental in commodity organizations’ work to advocate for growers.”

An economic engine

As part of its total output, the food/ag sector contributes total wages of $2.82 trillion and nearly 47.2 million jobs to the national economy, the report said. In addition, the industry drives exports of $182.79 billion and business taxes of $1.26 trillion.

“From the agriculture sector to food retail, wholesale and product manufacturers, the entire food industry connects shoppers to essential products they need to keep their families healthy and nourished,” said Leslie Sarasin, president and CEO of FMI — The Food Industry Association. “This year’s Feeding the Economy study continues to demonstrate the powerful economic impact of the food and agriculture sector on feeding America and growing the nation’s economy – responsibilities we all take very seriously.”

The direct output of the US food/ag industry amounts to $4.02 trillion, including direct wages of $1.05 trillion and more than 24 million direct jobs, or about 15% of the nation’s employment.

Of the sector’s direct economic output, brick-and-mortar retail accounts for almost $1.54 trillion, with manufacturing at close second at $1.31 trillion. Next are agriculture at $499.1 billion, off-premises retail at $369.51 billion and wholesale at $298.94 billion.

“The Feeding the Economy report affirms the vital role the food and agriculture sector plays in our nation's economy,” said Eric Dell, president and CEO of the American Bakers Association. “It’s a testament to the hard work and resilience of everyone involved in this industry, from the farm to the bakery and beyond.”

The US food/ag sector has seen significant growth since the pandemic, raising its economic output by nearly 25%, according to the study, which noted that the gain came amid global supply chain challenges. Direct employment in food and agriculture, meanwhile, has climbed by more than 1 million jobs since 2020, in turn lifting overall national job growth and employment rates.

“The North American Millers’ Association represents millers of wheat, corn and oats located in more than 30 states,” said Jane DeMarchi, president of the North American Millers’ Association. “Our members are proud to be the indispensable link between raw grain and healthy, delicious products that have sustained and enriched people’s lives for centuries. As the numbers in this study show, millers – along with the millions of workers across the entire food and agriculture sector – are working tirelessly to feed our communities and country.”

By state, California leads in total food and agriculture economic output at $1.15 trillion, well ahead of second-place Texas at $867.9 billion. Rounding out the top 10 are Florida ($511.76 billion), New York ($455.52 billion), Illinois ($443.79 billion), Pennsylvania ($332.48 billion), Ohio ($330.56 billion), Georgia ($310.65 billion), North Carolina ($297.08 billion) and Wisconsin ($251.78 billion).

Employment pressures

The US food and agriculture industry landscape encompasses almost 2 million farms and ranches – covering 2 out of every 5 acres in the nation – plus about 200,000 food manufacturing, processing and storage facilities; approximately 200,000 retail food stores; and more than 1 million restaurant and foodservice locations, the study said.

Melissa Hockstad, president and CEO of Consumer Brands Association, said the consumer packaged goods industry represents the largest domestic manufacturing sector by employment, with over 22 million jobs and contributing $2.5 trillion to US GDP. Michael Dykes, president and CEO of the International Dairy Foods Association, noted that the more than 3.2 million workers in his industry segment are “pumping nearly $800 billion into our nation’s economy.” And SNAC International president Christine Cochran said the over 395,000 workers in the snack industry run from “processors and manufacturers to seasoning and packaging producers.”

Certain emerging trends, however, reflect a food and agriculture sector “under pressure,” the Feeding the Economy report said. For example, direct and indirect industry wages have risen year over year but remain behind inflation, due to high labor costs for employers and national economic “stressors,” according to the study. The number of agricultural manufacturing jobs, too, has declined from a year ago and shrunk by nearly 30,000 jobs since 2020.

The report also comes as food and agriculture industry players size up the potential impact of the Trump administration’s tariffs – notably on trading partners Canada and Mexico, both significant exporters of food products and foodstuffs to the United States.