NASHVILLE, Tenn. (RFD-TV) — The grain and feed industry is making a big impact on rural America. A new study reveals that the sector is a significant driver of jobs and economic activity. The National Grain and Feed Association (NGFA) says the report (PDF Version) gives us a look at the numbers.
“The Harvest Economy Report quantifies what many of us already know – that our industry is essential to rural communities, domestic and global food security, and the U.S. economy,” said NGFA President and CEO Mike Seyfert. We found that America’s grain and feed industry generates $401.7 billion in economic output and supports over 1.16 million jobs nationwide.”
The analysis found there are nearly 9700 grain and feed facilities across the country, employing more than 175,000 workers. And Seyfert says there’s a ripple effect.
“Supplier industries and local businesses benefit from our industry, creating hundreds of thousands of additional jobs,” he continued. “From transportation to equipment to professional services, the impact touches nearly every sector of the economy. Not only that – the tax revenue our industry generates benefits communities from coast to coast. All told, we are contributing nearly $33 billion a year in taxes paid to federal, state, and local governments.”
The study also provides a state-by-state breakdown of jobs and economic output. Seyfert says that data will help lawmakers understand the importance of grain and feed in their districts.
USDA’s Final Grain Stocks Report Coming Soon
Next Tuesday, the U.S. Department of Agriculture (USDA) will release its final stocks report for the marketing year. The big question is, will corn supplies come up short?
One industry expert said he does not expect that to happen, though it is possible the department could raise stock levels.
“The USDA, back in January, cut yield 3.8 bushels per acre, and they cut production 275 million bushels; at that point in time, it just has never felt like that cut was warranted,” said Bryan Irey with Crossroads Coop. “I don’t know if it’s likely at this point, but it’s certainly conceivable that the USDA raises the stocks in the September 30 report, which would be very negative to grains.”
Irey added that the USDA may have covered the error with a big jump in corn yields in the August WASDE report.
“I do think we have to clear that stocks report on September 30, and then incorporate the September 30 stocks numbers into the October 12 WASDE crop production reports, which could end up being a really big deal,” Irey said. “By then, we’ll have more hard data from yields thus far through what harvest has occurred in the corn belt, and start to tighten this thing up a little bit. It just feels like the numbers are so loose at this point.”
RFD-TV News will be monitoring both reports carefully and bring you coverage on the Market Day Report and Rural Evening News.
