How important do you think agriculture is to all of us Siemens Says
Did you know that primary, secondary, and tertiary contributions together, the agricultural economic contribution is close to 12 percent of Manitoba’s GDP. That’s $7.35 billion for 2013.
No small feat for an industry, at least at the primary level has about 1.5 percent of the total population producing that food. Once you add the secondary and tertiary production sectors, the employment numbers swell. Again, don’t forget this creates employment for all those hard working people.
Going forward in 2015, the food producing industry is in good hands. Yes, there is always a sector or two that lags behind, or in the case of hogs and cattle, those sectors, at least partially, are riding on the backs of the grain, soybeans, and corn farmers.
While not a tit for tat by any stretch of the imagination, me being in the middle in these situations when farmers tell their stories, some grain and corn producers didn’t have much empathy or sympathy for hog producers going through their big challenges over the last five to seven years. Some of the hog producers, when they look at the good times grain farmers had the last 3 to four years.
Both, while only small groups don’t think of the fact the grain and corn farmers need the hogs to consumer their crops, while the hog producers sometimes forget without the grain farmers, their hogs go hungry, too.
That reminds me, while much of the $7 billion dollars plus the ag industry contributes to the economy in Manitoba, most people living in Manitoba also keep their mouths and tummies full from the efforts of all the farmers in Manitoba, whether raising hog, cattle, elk, grain, corn, canola, or rutabagas…..
According to the Manitoba government, in Manitoba, the agricultural industry is a key driver of productivity and prosperity. The diversity of agriculture in the province plays an important role in maintaining economic strength and generating socio-economic stability.
Agriculture contributes to Manitoba’s Gross Domestic Product (GDP) through net profits and
incomes including wages, depreciation and investment income. Improvements in GDP can be
attributed to improved crop prices and production. Historically, agriculture’s direct and indirect contribution to GDP ranges between 4.4 percent and 4.8 percent.
Manitoba’s food and beverage industry contributes an additional 2 to 4 percent to provincial GDP. Agrifood processing is the largest manufacturing sector, with $3.6 billion in sales in 2011. This represents 23.2 percent of total manufacturing output, given that the value of all goods manufactured in Manitoba totalled $15.3 billion in 2011.
Agriculture-connected industries, including food and beverage processing, supply inputs to
agriculture, as well as wholesale, retail and other service sector components which supply
services to farmers and other agriculture-related workers. When agri-food's indirect contribution to the GDP is added to its direct contribution, an estimated 9 percent of Manitoba's GDP is attributed to agriculture in 2011. It is estimated that when tertiary level contributions are included, the total impact on GDP may be closer to 12 percent.
Grain-based industry activity in Manitoba includes commodities, transportation and marketing; regulatory agencies; value-added processing; manufacturing; process technology; consulting engineers; turnkey construction; training and education.
Over 230 Manitoba-based companies are involved in agribusiness manufacturing including the production of tractors, harvesting equipment and grain handling technology. Shipments are estimated to exceed $1.0 billion and approximately 70 percent is exported. Major markets include the United States, Central Asia, Eastern/Western Europe, Asia Pacific, Latin America, Africa and the Middle East.
It is estimated that between 1 in 10 jobs depends on direct and indirect spin-offs from agriculture.
Agriculture supports growth and employment in the rural economy by providing a market for
services needed by the industry.
Farms contribute directly to the economy by employing people and paying wages and salaries.
Agriculture contributes 62,000 jobs to Manitoba's economy and directly employs approximately 30,000 workers. With over 255 companies in Manitoba’s value-added food processing industry, the sector provides 23,600 jobs.
So there you have a short summary, with maybe too many numbers, of how important the farming industry is to all of us, including the governments who collect the taxes when farmers and ag-related sectors actually make money.
By Harry Siemens