ESI produced a 2018 economic impact analysis of Pennsylvania’s agricultural sector for the Team Pennsylvania Foundation, a public-private partnership focused on the state’s economic competitiveness. Team PA engaged ESI in 2020 to update and deepen that analysis to reflect the 2019 Pennsylvania Farm Bill, national trends in the agriculture industry, the economic disruptions of the COVID-19 pandemic, and the growing influence of climate change on Pennsylvania’s farming sector.
ESI conducted economic and fiscal impact analysis across the many subsectors of Pennsylvania’s agricultural industry using IMPLAN input-output modeling, examining direct, indirect, and induced contributions to employment, output, and labor income. The analysis covered major subsectors including poultry, beef, dairy, fruits and vegetables, food and beverage processing, forestry, and nursery and landscaping, and examined how the 2019 Pennsylvania Farm Bill might affect each subsector and generate spillover effects. Trend analysis compared 2012 and 2017 data to identify structural changes including farm consolidation, shifts in farm size and type, and growth in market value of products sold. Forward-looking analysis identified future opportunities and threats shaping the sector.
The analysis found that agriculture in Pennsylvania generated $81.5 billion in direct output, supporting more than 300,000 direct jobs and $14.5 billion in labor income on an annual basis. Including indirect and induced impacts, the total economic contribution reaches $132.5 billion, supporting nearly 600,000 jobs statewide. The report identified future growth opportunities including expansion of direct-to-consumer sales, urban agriculture, and organic and sustainable farming, alongside key threats such as workforce challenges, climate change, and the loss of small farms. Policy recommendations addressed workforce development, supply chain resilience, rural broadband access, agricultural infrastructure investment, and food support network connectivity.