Once we have these Farm Gate values calculated we have only begun to measure the impact of agriculture. Economists use a process called the multiplier effect to further measure economic impact. This takes into account the amount of purchases a particular economic sector makes locally of things like basic inputs, services like legal and accounting and then factors in how much of the product is sold out of the region. Put this all together and you have the multiplier. For agriculture a very conservative multiplier is about 2.0 although many economists will use a higher one approaching 2.5 - 3.0. Agriculture is a sector that has one of the higher multipliers. At a 2.0 multiplier the impact on the local economy from agriculture in our region is $1.772 Billion!

We are blessed in this region with an abundance of world-class soils, excellent growing climate and availability of a good water supply for irrigation and processing. We are also the benefactors of a skilled work force, both resident and migrant, that work our fields, harvest our crops and process our value added products. We have a University system of research, teaching and extension that have aided the development of the infrastructure of agriculture and continue to support it. Through this system we have developed a mix of commodities that are well suited for our area and are in high demand throughout the world. In fact about 80% of what we grow is exported out of state with about 15% actually going to foreign markets. This is another factor leading to the higher multiplier for agriculture.

The agricultural economy has remained strong and has shown continued growth over most of the last decade. In addition to the many food related processors and direct agricultural supply businesses there are many other ag-related businesses. Welliver Metal Products Corp. in West Salem and Steffen Systems, Inc. east of Salem are just a couple worth mentioning. Note the many SEDCOR members from the Ag community that are featured in this issue. All of this activity around agriculture translates into jobs in our economy. It all starts out on that beautiful farmland that surrounds us.