Agriculture contributed almost $1tn to US economy in 2015

The agriculture sector in the US contributed $992bn to the country’s gross domestic product (GDP) in 2015. While the overall contribution of the agriculture sector to GDP stands at 5.5%, the contribution of farming stands at just one per cent.

The value added to GDP by agriculture, food and related industries is made up of farming, forestry, fishing, food, beverage and tobacco manufacturing, clothes manufacturing, food and beverage stores and food service.

The one percent share of GDP that US farming held in 2015 is equivalent to $136.7bn, a second consecutive fall from the 2013 figure which reached a high-point of $189.9bn.

One of the key reasons for this downward trend has been falling commodity prices. In 2013, maize and soya prices peaked in line with the GDP high point. Since then, prices for the same two commodities have fallen by at least 30%.

The categories of food service and textile and clothes manufacturing have increased significantly in their contribution to US GDP over a similar time frame.

Data from the Central Statistics Office (CSO) indicates that the agrifood sector (including agriculture, food, drinks and tobacco) accounts for around 7% of GDP, with primary agriculture, forestry and fishing accounting for around 1.8% of GDP.

The agrifood sector accounts for 10.7% of Ireland’s merchandise exports and provides 8.4% of national employment.