Discussion Paper

Farming Creates Value and Employment for Rural Areas

Abstract: From peanut farms in Virginia to cotton fields in South Carolina, open land lends itself to agricultural production. And, by definition, rural areas have more open land.1 The question is: Just how important is farming to rural areas? The importance of agriculture to the Fifth District's economy can be assessed through its total production value, the number of jobs it provides, and the income it generates for rural farmers. In many rural areas, farming accounts for a large share of production. Nationally, agriculture production accounts for about 1 percent of total gross domestic product (GDP). But in the rural parts of our district, it accounts for an average of three times that amount, and in some places reaches nearly 30 percent of GDP. Farming also provides a sizeable number of jobs in rural communities. Nationally, farm employment accounts for just 1.2 percent of total employment, but in the average rural county in our district, this number increases to over 4 percent and ranges up to 20 percent of total employment. However, while farming does provide production and jobs, the net income generated can be tenuous at best, particularly for smaller farms. This leaves many farm owners needing alternative forms of household income to keep operating.

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Regional Matters

Publication Date: 2025-03-06