Agriculture is growing Idaho's economy

As spring planting gives way to long summer days in the fields for Idaho’s farm and ranch families, I am reminded of producers’ central role in our economy and the ongoing need to ensure federal policy empowers a strong American agriculture sector.

This spring, the University of Idaho issued a report titled Economic Contribution of Idaho Agribusiness 2025 quantifying that growing role. The University found, “Agriculture has an enormous impact on Idaho’s economy, responsible for a record $44.5 billion in annual sales and 17.2 percent of the state’s total economic output.” Also, according to the study, Idaho agribusiness and the economic activity it generates in other sectors account for 137,900 Idaho jobs or approximately one in every nine jobs in the state.

Further, the University reported Idaho ranks among the top eight states in the production of 22 crop and livestock commodities — including number 1 in potatoes, barley, alfalfa, trout and peppermint oil; number 2 in hops; and n3 in sugar beets, cheese, milk and milk cows. The university noted that, remarkably, “The agribusiness sector accounts for a greater share of the state economy in Idaho than in all its neighboring states and the United States as a whole.”

Every day, farmers and ranchers in Idaho and across the country work hard to ensure Americans and populations around the world are well fed, as producers face strong headwinds — with high input costs and interest rates, considerable labor challenges, natural disasters and disease all contributing to the inherent risk of agricultural production. I continue to use my position as chairman of the U.S. Senate Finance Committee to ensure federal policy best enables Idaho agriculture to compete successfully.

The Working Families Tax Cuts, enacted into law last year, included policies that will help farm families continue to produce abundantly with more certainty about federal tax and agricultural policy affecting their operations. The law permanently doubled the death tax exemption so family farms can stay in the family. Full expensing for new farm equipment and vehicles was permanently restored. 

The small business deduction, claimed by hundreds of thousands of family farms and ranches, was made permanent. Additionally, the law allows banks to exclude a portion of interest income on farm loans, helping them provide farmers and ranchers more affordable loans, and the farm safety net that supports investments in agriculture and research programs was extended as work continues on a full Farm Bill reauthorization.

Earlier this year, I joined Ranking Member Ron Wyden (D-Oregon) in reintroducing the Specialty Crops Reporting on Opportunities and Promotion Act. Idaho farmers can outgrow the world, but high tariffs and burdensome labeling requirements imposed by foreign nations keep agricultural producers from accessing global markets. The legislation would help farmers by making key improvements to the annual U.S. Specialty Crops Trade Issues Report to identify and combat unreasonable trade barriers more effectively.

Likewise, as we get closer to the joint review of the U.S.-Mexico-Canada Agreement later this summer, I am using every opportunity to stress the importance of protecting the vital access Idaho’s agriculture producers have to our neighboring countries, while holding those countries accountable to their commitments.

Agriculture is the cornerstone of Idaho’s economy. I will continue to build on the progress we have made in providing certainty in our tax code and making it easier for producers to access the capital they need to buy new equipment, weather lean years and pass down their family farms for generations to come.

Mike Crapo represents the state of Idaho in the U.S. Senate. He can be reached at crapo.senate.gov.