New Framework for Economic Impact Analysis Captures Agricultural Contribution
A team from Cornell University has unveiled a framework for economic impact analysis that uses locally sourced data to accurately capture spending related to the agriculture industry. Traditional economic analyses using state and local data can distort the impact of agriculture in a local economy. The Cornell researchers used New York’s apple industry as a case study for the new framework and found that this industry has a 21% larger economic impact than traditional models suggest. The team found that every $1 of New York apples or apple products sold generates an additional 58 cents of spending, such as for support services and supplies. Similarly, apple industry jobs generate additional employment, and every $1 of direct apple-industry gross domestic product generates an additional $1.14 in GDP from related business activity in the state.