By Jamie Martin
North Carolina's food, fiber, and forestry sector remains one of the state's largest economic contributors, according to a new report analyzing 2024 economic data. The industry generated $117 billion in economic value and supported approximately one million jobs statewide.
The report was developed by Jeffrey Dorfman, an agricultural and resource economics professor at NC State University. His analysis examined the full agricultural value chain to provide a comprehensive picture of the industry's role in the state economy.
Rather than focusing only on farms, the study includes all activities connected to agricultural products. This approach covers production, processing, distribution, retail sales, and consumer services related to food, fiber, and forestry products.
The agricultural sector includes farmers, ranchers, foresters, food manufacturers, textile producers, wood processing facilities, retailers, restaurants, and garden centers. Businesses that supply equipment, fertilizer, and other farm inputs are also included.
By using this broader definition, the report captures how agricultural products move through the economy from production to final use. The result is a more complete understanding of agriculture's economic reach.
A key point in the report is that the $117 billion estimate represents direct economic activity. The figure does not include multiplier effects that are often added in some economic impact studies.
Instead, the value reflects the goods and services created directly by the food, fiber, and forestry system. Products ranging from food and beverages to textiles, wood products, paper, and retail food sales contribute to the total.
Employment remains one of agriculture's strongest contributions. The sector supports nearly one-fifth of all jobs in North Carolina, making it the state's largest industry in terms of workforce participation.
Several other industries also play important roles in North Carolina's economy, including professional services, manufacturing, real estate, healthcare, retail, and government services. Many of these sectors account for similar shares of economic output.
However, comparing industries is not always straightforward. Agricultural activities often overlap with manufacturing, retail, transportation, and service sectors, creating challenges when assigning economic value to a single category.
For example, food processing may be classified within manufacturing, while grocery sales may appear under retail trade. These distinctions affect how industries are ranked in official statistics.
Healthcare faces similar classification challenges because related activities such as pharmaceutical production, medical equipment manufacturing, and healthcare facilities may appear across several categories.
As a result, experts caution against focusing only on industry rankings. Instead, the report emphasizes the significant role agriculture plays in supporting businesses, jobs, and economic activity throughout North Carolina.
The findings demonstrate the importance of maintaining a strong agricultural sector capable of supporting both rural and urban communities. Food production, forestry operations, manufacturing, retail sales, and supporting businesses all contribute to the industry's success.
Although debates may continue about which industry ranks first by economic output, the report confirms that North Carolina's food, fiber and forestry sector remains one of the state's most influential industries and the largest contributor to employment statewide.
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Categories: National