U of I report: Idaho ag’s economic impact hits record $44.5 billion
Study finds ag is responsible for 17.2% of Idaho’s economy
March 13, 2026
MOSCOW, Idaho — Agriculture has an enormous impact on Idaho’s economy, responsible for a record $44.5 billion in annual sales and 17.2% of the state’s total economic output, according to a recent University of Idaho report based on 2024 data.
The study, “Economic Contribution of Idaho Agribusiness 2025,” by Philip Watson, a professor in the Department of Agricultural Economics and Rural Sociology, also found agriculture employs 137,900 Idaho workers — about one in every nine jobs in the state.
The study places Idaho among the nation’s top five states for agricultural sales as a percentage of the overall economy. The calculations factor in all dollars brought into the state because of agriculture, as well as the ripple effects those dollars have on the economy. For example, purchases such as fertilizer and chemicals used to grow crops, as well as farmer’s living expenses, are part of the estimate.
Watson updates the report about every three years to document agriculture’s growth and its importance to the state’s economic vitality. He uses data from the U.S. Department of Agriculture’s National Agricultural Statistics Service, along with analysis from IMPLAN, which is a private economic impact modeling company, regarding agriculture’s linkages with other economic sectors.
“Our College of Agricultural and Life Sciences likes to take these reports to Boise when the Legislature is in session to make sure people understand the scope of agriculture in Idaho,” Watson said. “Agriculture is growing, and this is the largest contribution of agriculture into the Idaho economy in history.”
Watson’s latest estimates of agricultural sales in the state, published in February 2026, rose from $37.5 billion in 2022, when agriculture was responsible for 126,800 jobs in Idaho. However, agriculture’s percentage of the state’s total economic output has remained relatively flat — increasing by only 0.2% over the past three years — demonstrating that many other sectors of Idaho’s economy are also strong and growing.
Watson’s report ranks Idaho among the top eight states in the production of 22 crop and livestock commodities — including No. 1 in potatoes, barley, alfalfa, trout and peppermint oil; No. 2 in hops; and No. 3 in sugar beets, cheese, milk and milk cows.
“Agriculture is a very large part of the Idaho economy, and it’s connected to so many other parts of the Idaho economy,” Watson said. “It’s not just cows and plows and farms and potato chip companies. It’s woven into the economy in very deep ways.”
The report estimates the annual value of agricultural sales alone — excluding linkages to other economic sectors — at $32.7 billion, supporting 79,000 Idaho jobs.
Idaho agricultural exports to foreign countries remained steady from 2022 at about $2.8 billion. A primary reason for the lack of export growth is that Idaho’s food processing capacity has grown significantly in recent years, and a larger share of Idaho’s food commodities is now processed within the state.
“Idaho’s farm sector used to be much larger than the processing sector, and that has changed within the past five years, which is a really good thing for Idaho,” Watson said. “Rather than shipping out our raw milk and our raw potatoes, we are now capturing more of that added value in the state by processing them here. I think it’s showing a maturing agricultural industry.”
Media contact
Philip Watson
Professor, Department of Agricultural Economics and Rural Sociology
208-962-1312
pwatson@uidaho.edu