The Importance of Agriculture to the New York State Economy

The Importance of Agriculture to the New York State Economy Thomas P. DiNapoli New York State Comptroller March 2015 Introduction Farms in New York Farms are an essential and diverse part of New As of 2012, New York was home to more than York State’s economy, contributing significantly 35,500 farms located in every region of the State, to employment, incomes and tax revenues across including New York City. Within the total, 842 the Empire State. are certified organic, putting New York third in the nation for the number of certified organic With farmland occupying nearly one-quarter of farms. the State’s land area, agriculture also promotes New Yorkers’ quality of life in other ways, Farms in New York occupied approximately 7.2 including providing access to fresh, locally million acres of land in 2012, almost one-quarter sourced food, preserving open space, and of the State’s total land area. This was an increase enhancing communities through farmers’ markets of approximately 9,000 acres from 2007, even and other such activities. though the total number of farms decreased by 815 over the same period. Of this farmland, Economic Impact of Agriculture in approximately 59 percent is dedicated to crops, 22 New York State percent is woodland, 10 percent is pastureland, and the remaining 9 percent is dedicated to The broadest measure of direct economic activity conservation and other uses. Certified organic from farming shows more than $5.4 billion in farms constitute over 205,000 acres of farmland, agricultural commodity sales in New York during with most of that land dedicated to organic crops. 2012, an increase of more than 22 percent from 2007.1 Including impacts from agriculture support Overall, the average size of a farm in New York is industries and industries that process agricultural 202 acres, up from 197 acres in 2007. In products, the total estimated agricultural impact comparison, this is less than half the national was $37.6 billion in 2011.2 average of 434 acres. More than half of New York’s farms are smaller than 100 acres. New York ranks as a national leader for a variety of agricultural commodities. For example, New Within the ten regions of the State, the Southern Tier has the largest number of farms, with more York ranks third in the nation for sales of milk, 3 and leads the nation in the production of yogurt, than 6,600. However, the Finger Lakes region cottage cheese, and sour cream. has the largest amount of farmland, with over 1.47 million acres. Other farm commodities in which New York is a top-ten producer include apples, grapes, onions, Agricultural property across the State generated sweet corn, tomatoes, maple syrup and a wide $208 million in local property taxes for school variety of other fruits and vegetables. districts and local governments. Net farm income, more than $1.2 billion in 2012, was up 2.9 percent from five years earlier. 1 Data for this report is drawn primarily from the U.S. Department of 3 Regions used in this report are economic development regions as Agriculture (USDA) Census of Agriculture (most recently 2012) and identified by the New York State Department of Economic supplemented by data from the USDA Agricultural Statistics Service. Development. 2 Schmit, Todd. “The Contribution of Agriculture to the New York Economy.” Research & Policy Brief Series. Community & Regional Development Institute. Ithaca: Cornell University, August 2014. Office of the State Comptroller Farmers in New York cattle and calves, and vegetables, melons, and potatoes (see Figure 1). During 2012, almost 56,000 New Yorkers were farm operators and nearly 61,000 other individuals In addition, New York is a leading producer of were employed as hired farm labor during the specific agricultural products encompassed within year. Ninety eight percent of New York’s farms these broad commodity categories. New York are family-owned. Where owners are married ranks second nationwide in apple production, third couples, both spouses tend to be involved with the for grapes and fourth for pears. daily operations. Most farmers in the State also Figure 1 live on their farms. Top Agricultural Commodities in New York Farming tends to be a long-term occupation with Sales Share of U.S. relatively little turnover compared to many other (millions) Total Rank occupations. Over three-quarters of farmers have Milk from Cows $2,417 44.6% 3 been farming for ten or more years, either Grains, Oilseeds, Dry Beans, Dry Peas $856 15.8% 27 operating their own farm or working on another’s. Cattle and Calves $450 8.3% 30 Nursery, Greenhouse, Floriculture, Sod $413 7.6% 9 Slightly more than half of all farmers are primarily Vegetables, Melons, and Potatoes $364 6.7% 13 engaged in the occupation of farming (spending Fruits, Tree Nuts, and Berries $308 5.7% 6 50 percent or more of their worktime farming), Other Crops and Hay $301 5.6% 18 with 43 percent having farming as their sole Poultry and Eggs $145 2.7% 29 occupation. Horses, Ponies, Mules, and Donkeys $58 1.1% 5 Hogs and Pigs $39 0.7% 29 Along with the declining number of farms in New Other Animals/Other Animal Products $20 0.4% 21 York, the number of farmers has also fallen since Sheep, Goats, Wool, Mohair and Milk $19 0.4% 13 2007. The ranks of hired farm workers increased Aquaculture $18 0.3% 20 slightly during the period, however. From a Christmas Trees and Woody Crops $7 0.1% 8 demographic perspective, farmers are an aging Total $5,415 26 population with an average age in New York of Source: U.S. Department of Agriculture, 2012 Census of Agriculture 55. More than three-quarters of farmers in the State are over the age of 45. Both figures are close New York is one of the top ten producers to national averages. nationwide of cherries, peaches, strawberries and for many types of vegetables, including cabbage, While farming’s overall economic impact is cauliflower, cucumbers, onions, pumpkins, beans, important, the majority of farmers do not generate squash, sweet corn, and tomatoes. significant revenue from farm income. In 2012, slightly more than 50 percent of New York farms Besides the agricultural commodities themselves, had sales of less than $10,000. New York is a leader in the production of goods made from these commodities. A good example Major Agricultural Products is New York’s wine industry. New York is the Though New York ranks 26th among the 50 states second largest producer of wine behind California. for total value of agricultural sales, it ranks in the In 2013, New York had 373 wineries and top ten for a number of agricultural commodities. produced over 33.5 million gallons of wine, New York ranks in the top five for milk according to the Alcohol and Tobacco Tax and production, and for horses, ponies, mules, and Trade Bureau. In addition, New York wines have donkeys. It also ranks in the top ten for fruits, tree consistently won top honors at national and nuts and certain berries, as well as floriculture and international wine competitions. nursery products. New York is also the nation’s second largest Cows’ milk is by far the largest agricultural producer of maple syrup behind Vermont, and commodity in New York, with sales topping $2.4 leads the nation in a variety of dairy products. It billion, representing more than 44 percent of the ranks first in the nation for the production of State’s total sales in 2012. The State’s other top yogurt, cottage cheese, and sour cream, and fourth commodities include: grains, dry peas and beans, for the production of all cheeses. Office of the State Comptroller Page | 2 Regional Profiles Central New York Agricultural production occurs in every part of the The Central New York region includes Cayuga, State, even in New York City. The top five Cortland, Madison, Onondaga, and Oswego counties for sales in 2012 were Wyoming, Counties. The region has more than 3,500 farms Cayuga, Suffolk, Genesee, and St. Lawrence and 785,000 acres of farmland and ranks third in counties (see Figure 2). the State for agricultural sales, while Cayuga County alone ranks second in the State (See Figure Figure 2 3). The region is also the number one producer of Agricultural Sales by County in 2012 soybeans and a top producer of corn. Other top commodities include Christmas trees and woody crops, as well as sheep and goats. Figure 3 Top Ten New York Farming Counties Total Sales Number (thousands) of Farms Wyoming $ 318,412 713 Cayuga 289,235 891 Suffolk 239,818 604 Genesee 234,292 549 St. Lawrence 186,431 1,303 Livingston 185,477 661 Wayne 181,511 873 Ontario 178,980 853 Steuben 177,710 1,667 Jefferson 177,025 876 Total - Top Ten $ 2,168,891 8,990 Sources: U.S. Department of Agriculture; Office of the State Comptroller Total - State $ 5,471,639 35,537 Finger Lakes Source: U.S. Department of Agriculture, 2012 Census of Agriculture The Finger Lakes region includes the counties of Western New York Genesee, Livingston, Monroe, Ontario, Orleans, Western New York includes the counties of Seneca, Wayne, Wyoming, and Yates. This region Allegany, Cattaraugus, Chautauqua, Erie, and is the center of New York agriculture, having the Niagara. The region comprises over 5,100 farms largest amount of farmland in the State. It also and 870,000 acres of farmland. Home to the Lake ranks first in total amount of farm sales. Erie wine region, Western New York has 44 As an official wine region of the State recognized wineries.

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