SelectUSA Agribusiness Industry
Industry Overview
The U.S. agribusiness industry is a major competitor in the global market, due to its strong workforce, market size, and infrastructure. The agribusiness industry encompasses subsectors such as agricultural chemicals, crop production, aquaculture, forestry and logging, and livestock (agricultural machinery and equipment is represented in the machinery and equipment industry page). In 2023, foreign direct investment in the U.S. agribusiness industry totaled over $23 billion.
The U.S. agribusiness industry is expansive and provides important support to the economy and its workers. More than 2 million farms across the country cover about 900 million acres. Agriculture, food, and related industries contributed $1.5 trillion to the U.S. gross domestic product in 2023, a 5.6% share. The output of America’s farms contributed $203.5 billion of this sum that same year. The industry supported over 3.6 million workers in farming, fishing, and forestry occupations in 2022. In 2022, inward FDI in the U.S. agribusiness sector directly supported 26,600 jobs in the United States.
This industry group comprises establishments primarily engaged in one or more of the following: manufacturing nitrogenous or phosphatic fertilizer materials; manufacturing fertilizers from sewage or animal waste; manufacturing nitrogenous or phosphatic materials and mixing with other ingredients into fertilizers; mixing ingredients made elsewhere into fertilizers; and formulating and preparing pesticides and other agricultural chemicals. As of 2022, there were 1,049 establishments in this industry and the latest employment figures of 2024 estimate there are 40,300 workers in the industry. The FDI position in 2023 was $15.4 billion and majority foreign-owned firms supported 8,100 jobs in 2022.
Industries in the Crop Production subsector grow crops mainly for food and fiber. The subsector comprises establishments, such as farms, orchards, groves, greenhouses, and nurseries, primarily engaged in growing crops, plants, vines, or trees and their seeds. U.S. crop production was estimated to be $263 billion in 2022. In 2023, foreign direct investment in the industry totaled nearly $3.5 billion.
This U.S. industry comprises establishments primarily engaged in farm raising of aquatic animals (except finfish and shellfish) and/or farm raising of aquatic plants, both in marine and freshwater environments. Alligator, algae, frog, seaweed, or turtle production is included in this industry. Most U.S. aquaculture pertains to the freshwater farming of catfish and trout.
The establishment, management, use, and conservation of forests, trees, and associated resources in a sustainable manner to meet desired goals, needs, and values. Industries in this subsector specialize in different stages of the production cycle. Reforestation requires production of seedlings in specialized nurseries. Timber production requires natural forest or suitable areas of land that are available for a long duration. The maturation time for timber depends upon the species of tree, the climatic conditions of the region, and the intended purpose of the timber. The harvesting of timber (except when done on an extremely small scale) requires specialized machinery unique to the industry. Establishments gathering forest products, such as gums, barks, balsam needles, rhizomes, fibers, Spanish moss, and ginseng and truffles, are also included in this subsector.
There were 8,126 establishments in this industry as of 2022, employing nearly 50,000 workers. As of 2023, foreign direct investment in this industry was nearly $1.6 billion.
This industry includes production of animal goods such as meat, dairy, wool, and leather. The United States has the largest fed-cattle industry in the world and is the world’s largest producer of beef. In 2022, livestock commodities accounted for half of U.S. agricultural and were valued at $259 billion. Foreign direct investment totaled $2.1 billion in this industry in 2023 and supported 6,900 jobs in 2022.
Explore the impact of foreign direct investment on U.S. jobs, exports, and innovation in the agribusiness industry.
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