The Northeast Economic Engine: Agriculture, Forest Products, Commercial Fishing and Food Manufacturing

Volume 18, Issue 10
October 2024

Natural resource-based businesses, like farming, fishing, forestry, and food manufacturing do more than provide food, fiber, building materials, ornamentals and other goods. They are economic engines in their communities, providing jobs and financial impacts throughout the region.

In a new report, Farm Credit East, in collaboration with researchers at Cornell University, examines the economic impact of these industries in New England, New York and New Jersey. The study looked at the direct output of these industries and beyond to quantify the indirect impact of these businesses’ spending on inputs, supplies and facilities, as well as the induced impact of spending by their employees throughout the regional economy.

When totaled up, the report finds that agriculture, fishing, forestry and food manufacturing generated an economic impact of $225 billion and supported more than 818,000 jobs across the region.

For agricultural production, dairy cattle and milk production was the largest sector, generating $8.8 billion in economic impact and supporting more than 28,000 jobs. Forestry and logging generated $2.6 billion in economic impact and supported 21,000 jobs. Commercial fishing and aquaculture generated $2.5 billion in economic impact and supported 27,000 jobs.

Greater impacts came from food processing and manufacturing. While this large sector of the economy uses inputs from both local production and those from other regions, much of it is connected to Northeast farms. Dairy manufacturing, including fluid milk processing, butter, cheese and ice cream production had an impact of nearly $34.5 billion to the region and supported 86,000 jobs. In total, the food manufacturing sector had an impact of nearly $200 billion to the economy.

Similarly, in forestry, processing activities such as sawmills and paper mills, generated more than $23 billion in impact and supported 70,000 jobs.

Seafood processing had a $5.5 billion impact on the local economy and supported 19,000 jobs.

When these industries are combined, the impact on the local economy is significant. Many of the jobs supported are important to rural communities near farms, forests and fishing ports across the Northeast.

Notably, the regions agricultural industries produce more than food and fiber. The “green industry” (greenhouse, nursery, and landscape services) had $19.8 billion in direct sales, $38.6 billion in economic impact and 253,423 jobs supported.

Reflecting the diversity of the region, different production sectors are more prominent in different parts of the Northeast. Dairy cattle and milk production led in New York and Vermont. Nursery, greenhouse and floriculture production led in Connecticut and New Jersey. Vegetable production, anchored by potato growing, led in Maine. Commercial fishing led in Massachusetts and Rhode Island. Logging and forestry led in New Hampshire. Food manufacturing was significant in all eight states, with impacts in the billions. 

Agriculture, commercial fishing and forestry have been iconic industries for the Northeast since colonial times, when they formed the backbone of the economy. But far from being an anachronism, these industries today are modern, dynamic and vibrant contributors to the region’s economy and employment and remain an important part of the landscape. Beyond their economic impact, these industries also provide critical ecosystem services, preserve the Northeast’s working landscapes, and positively impact travel and tourism throughout the region.

¹Farming, fishing, forestry, and food manufacturing impact. Does not include landscape services.

²USDA Ag Census, 2022

³USDA Ag Census, 2022

Editor: Chris Laughton
Contributors: Chris Laughton

View previous editions of the KEP

Farm Credit East Disclaimer: The information provided in this communication/newsletter is not intended to be investment, tax, or legal advice and should not be relied upon by recipients for such purposes. Farm Credit East does not make any representation or warranty regarding the content, and disclaims any responsibility for the information, materials, third-party opinions, and data included in this report. In no event will Farm Credit East be liable for any decision made or actions taken by any person or persons relying on the information contained in this report.