Agriculture driving Idaho's economy, U of I study finds

Agriculture continues to be a driving force in Idaho’s economy, generating a record $44.5 billion in annual sales and accounting for 17.2% of the state’s total economic output, according to a new report from the University of Idaho.

The study, authored by U of I’s Philip Watson, found that agriculture supports about 137,900 jobs statewide — roughly one in every nine jobs in Idaho. It also ranked Idaho among the top five states nationally for agricultural sales as a share of overall economic activity.  

Watson’s analysis includes not only direct farm production, but also the broader ripple effects across related industries, including spending on fertilizer, chemicals and household expenses tied to agricultural workers. 

The report is updated every three years using data from the U.S. Department of Agriculture National Agricultural Statistics Service and economic modeling from IMPLAN. The report is often shared with lawmakers during legislative sessions in Boise. 

The findings underscore the sector’s continued growth, Watson said. 

“Agriculture is growing, and this is the largest contribution of agriculture into the Idaho economy in history,” he said. 

The latest figures represent a significant increase from 2022, when agricultural sales totaled $37.5 billion and supported about 126,800 jobs.  

Despite that growth, agriculture’s share of the overall economy has remained relatively stable, rising just 0.2% over the past three years — an indication that other sectors are also expanding, Watson said. 

Idaho continues to rank among the nation’s agricultural leaders across a wide range of commodities, leading the country in the production of potatoes, barley, alfalfa, trout and peppermint oil, while ranking second in hops and third in sugar beets, cheese, milk and dairy cows. 

The report estimates that direct agricultural sales alone total $32.7 billion annually and support about 79,000 jobs. 

While the agricultural footprint varies across the state, county-level data highlights its presence even in more urbanized areas.  

In Kootenai County, agricultural production totaled $23,353 in 2022, including $19,591 in crops and $3,762 in livestock, poultry and related products, according to the most recent available county data. 

Idaho agricultural exports to foreign countries remained steady from 2022 at about $2.8 billion. A primary reason for the lack of export growth is that Idaho’s food processing capacity has grown significantly in recent years, and a larger share of Idaho’s food commodities is now processed within the state. 

“Rather than shipping out our raw milk and our raw potatoes, we are now capturing more of that added value in the state by processing them here,” Watson said. “I think it’s showing a maturing agricultural industry.”