Crop Report: Local Ag Valued at $1.46B

Contributed by the Santa Cruz County Agriculture Commissioner

Santa Cruz County agriculture pumps $1.46 billion into the local economy and supports more than 11,000 jobs, Agricultural Commissioner Mary Lou Nicoletti announced Monday as she released the first comprehensive economic analysis of one of the county's top industries. 

“This study began with data from our Annual Crop Report, but we wanted to go a step further,” said Nicoletti. “We wanted to look beyond the direct production values to include the ripple effects from ag-related businesses. We wanted to better understand how and where agriculture contributes to our economy and to local employment.” 

The study was conducted for the Agricultural Commissioner’s Office by Drs. Jeff Langholz and Fernando DePaolis of Agricultural Impact Associates LLC, a local firm specializing in economic analysis. 

Some highlights from their detailed analysis: 

• Agriculture's $898 million in direct economic output represents 5.2% of the county total. Agriculture also contributes an additional $563 million in the form of expenditures by agriculture companies and their employees.
• Agriculture was directly responsible for 6,151 jobs – about one job in every twenty in Santa Cruz County. An additional 4,934 additional jobs are made possible through expenditures by agricultural companies and their employees. 
• Agriculture is related to many other employment opportunities in the county that are not included in the 11,085 jobs described in the report.  There are jobs in public and private institutions that employ researchers and scientists that work on agricultural issues. Agricultural regulation, education and communication, and food safety also provide employment opportunities.
• Despite two major economic recessions, Santa Cruz County agricultural production value grew 28 percent during the past decade, even after subtracting 27 percent for inflation.
• Local agriculture has a high "diversity" score using a popular quantitative index, making agriculture and the county more resilient to economic shocks.   

“This report truly emphasizes the importance of Santa Cruz County agriculture to the region, as an employer and economic engine,” said Nicoletti.  “To put the economic contribution in perspective, Santa Cruz County agriculture pumps $4 million per day into the local economy. That's $167,000 every hour, or $2,800 per minute. Every dollar earned in the region is multiplied many times over." 

“You can take any job directly related to farming and tie it to jobs outside agriculture”, said Santa Cruz County Farm Bureau President Cynthia Mathiesen, who is employed by Driscoll’s as its Global Intellectual Properties Manager. “I depend upon travel agencies, outside counsel, local catering services, and local office supply companies to assist me in my job”, said Mathiesen. 

The report, “Economic Contributions of Santa Cruz County Agriculture”, was released Monday at a briefing at the University of California Cooperative Extension, located at 1432 Freedom Blvd. in Watsonville. 

Read the complete Economic Contributions of Santa Cruz County Agriculture report here.