Wisconsin’s agricultural industry tops $116.3 billion in increase from previous years; dairy sector represents 6.5% of state’s economic activity

Posted on November 18, 2024 by

Wisconsin’s agricultural production and food processing sectors represent 14.3% of the state’s total economic impact, contributing $116.3 billion in industrial revenues – an increase of 10.9% from 2017. Agricultural businesses in Wisconsin constitute 353,900 jobs (9.5% of jobs in the state) and $21.2 billion to labor income. Additionally, the dairy sector and its significant dedication to cheese production contributes $52.8 billion and 120,700 jobs for the state alone, representing 6.5% of the state’s total economic activity and 3.3% of all jobs.

These findings are part of a newly released update to the Contribution of Agriculture to the Wisconsin Economy report, authored by Steven Deller, professor in the Department of Agricultural and Applied Economics in the UW–Madison College of Agricultural and Life Science and a community development economist  for UW–Madison Extension, and Jeffrey Hadachek, Assistant Professor also in the Department of Agricultural and Applied Economics.

A key finding of the report is that the state’s food processing sector continues to grow even as farms and jobs contract. The report compares the previous analysis using 2017 data with figures from 2022, the most current available

“Overall, the Wisconsin agricultural economy is dynamic and changing. Increasingly, value-added processes are a source of revenue and employment growth for the Wisconsin agricultural industry, and fewer people are directly involved in on-farm production,” said Deller.

The report is available here:

A look at the ag industry

Agriculture is an integral part of Wisconsin’s culture, contributing to a strong sense of pride in the state’s rural roots and agrarian traditions.

“I am pleased that the economic impact of Wisconsin agriculture is growing due to the hardworking and innovative farmers and food processors across the state,” said Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) Secretary Randy Romanski in a press release.

As with many industries the nature of the agricultural and dairy industries – markets, characteristics, policies – is ever changing. There continues to be noticeable expansion in the state’s dairy-product processing sector. Despite a drop in number of dairy farms across the state, total milk production in Wisconsin increased by 5.9%, from 30.3 billion pounds to 32.1 billion pounds. National milk production had an increase of 4.4% over the same period.

Other findings

The Contribution of Agriculture to the Wisconsin Economy report also includes:

  • Food processing, including beverages, contributes $107 billion to industrial revenues (13.1% of state total), 298,400 jobs (8.1%), $18.7 billion to labor income (7.7%), and $32.4 billion to total income (8.1%).
  • Despite the declining number of farms between 2017 and 2022 (from 64,793 in 2017 to 58,521 in 2022) there was an increase in the number of food processors (including beverage manufacturers) over the same period.
  • Between 2017 and 2022, Wisconsin saw a significant decline in the number of dairy farms, from 9,304 to 6,533, a decrease of 29.8%. Over the past 25 years, the state lost 15,366 dairy farms, representing a 70.2% reduction since 1997. This rate of decline is faster than the national average, which experienced a 64.5% decrease in dairy farms over the same period. The number of dairy cows in Wisconsin decreased only slightly, from 1,280,395 in 2017 to 1,264,272 in 2022, a reduction of 16,123 head or 1.3%.
  • The contribution to employment declined from 437,700 jobs in 2017 to 353,900 jobs in 2022, a decline of 19.1%. Labor income (wages, salaries, and proprietor income) decreased by 5.5% going from $22.5 billion in 2017 to $21.2 billion in 2022. There was a modest increase in total income (labor income plus all other sources of income), going from $37.6 billion in 2017 to $37.78 billion in 2022.