Agriculture-Based Economic Development in NYS: Trends and Prospects
Schmit, T.M.; Bills, Nelson L.
Policymakers, industry leaders, planners and economic development professionals in New York State (NYS) face a set of fundamental questions about agriculture-based economic development (AED) and its potential to support and/or enhance the economic vitality of communities across the state. Agribusiness firms need to effectively and continuously adapt to changing economic conditions, consumer preferences, and technological advancements. To that end, firms are seeking innovative methods to attract new and growing markets for their commodities and products, vertically integrate their operations in both upstream and downstream markets, invest in value-added consumer-driven activities, and develop domestic and international joint ventures and strategic alliances. Such activities suggest growing farm-to-food developments at the farm, as well as increased interaction and coordination with others in the agribusiness industry. Understanding the economic contributions and evolving linkages between agricultural production, agricultural service, food manufacturing, and distribution and marketing to consumer markets is essential in defining appropriate firm, industry, and public policy strategies to strengthen opportunities for economic development and improve the competitiveness of agribusiness industries. This report is part of a larger ongoing effort to assist with these efforts. The focus is on up-to-date baseline economic information on the current status and trends of New York State agricultural and food system economic activity. By integrating multiple data sources, we are able to provide more detailed sub-industry level estimates of total output, employment, and value added than previously published. Longer term trends in farm and food production are also summarized. In addition, forward and backward linkages between farm commodity production and the wider grow the economy are estimated and discussed to better inform priorities on development initiatives and industry performance.