Merced County Agriculture Drives Local Economy with Nearly $10 Billion Impact, New Report Shows

Merced County agriculture pumped $9.93 billion into the local economy in 2023 and supported 38,800 jobs, Agricultural Commissioner Sean Runyon announced today as he released the first-ever comprehensive analysis of the county's largest industry.

"This study goes beyond our annual agricultural report," said Runyon. "Instead of stopping at farm production values, it also quantifies local food processing, employment, and economic ripple effects. The findings offer vital information for anyone who values a vibrant and resilient local economy."

To put the contribution in perspective, Merced County agriculture pumped over $27.2 million dollars into the county economy per day, or more than $1.13 million per hour.

The study was conducted for the Department of Agriculture by Drs. Jeff Langholz and Fernando DePaolis of Agricultural Impact Associates, a consulting firm that specializes in agricultural economics.

Key findings include:

• Including local food production, processing, and multiplier effects, agriculture contributed $9.93 billion to the county economy. This represents more than $27.2 million dollars per day, $1.13 million per hour, and over $18,000 per minute.
• Of the $9.93 billion in total economic contribution, $7.042 billion came from direct economic output via production and processing. An additional $2.888 billion came from multiplier effects generated by purchases of agricultural supplies and spending by employees.
• Agriculture's $7.042 billion in combined direct output from production and processing represented 30 percent of the county's total economic output of $23.504 billion, about one out of every 3.3 dollars. This made agriculture the largest economic sector in Merced County by far.
• As the county's largest employer, agriculture directly supported 22,862 employees - approximately one out of every five jobs in Merced County - plus another 15,938 attributable to multiplier effects.
• Agriculture has an exceptionally high level of economic diversification across products, which has provided critical stability and resilience to the agricultural industry and to the larger county economy.

" Agriculture is the backbone of Merced County's economy and identity. It drives local jobs and investment while sustaining families and communities across our region," said Merced County Board of Supervisors Chairman Josh Pedrozo. "Supporting our farmers and ranchers means supporting the long-term prosperity of our area."

"Thanks to the hard work of our growers and producers, Merced County is a global leader in agricultural production," said Mark Hendrickson, County Executive Officer. "I appreciate our Agricultural Commissioner's leadership in developing this important report as it well details the many contributions of our agricultural industry to the local economy."

"Merced County's farmers, ranchers, and processors do more than grow food - they power our local economy," said Breanne Vandenberg, Executive Director of the Merced County Farm Bureau.

David Barroso, President of the Merced County Farm Bureau and a local dairy producer, added: "Farmers and ranchers have long known that every dollar spent creates ripples that support a healthy local economy. Now, thanks to the new Crop Report Plus study, we have documentation of those wider economic effects."

The report, "Economic Contributions of Merced County Agriculture", was released today in conjunction with Agricultural Commissioner/Sealer Sean Runyon's briefing of the Board of Supervisors. The report may be viewed online. A limited number of printed copies of the report are available at the Agricultural Commissioner's Office at 2139 Wardrobe Avenue in Merced.