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Aggregate agriculture sector


Agriculture historically has been one of the primary sectors of the Arkansas economy. Agriculture is defined as the sum of agricultural, forestry, and fisheries production and processing activities unless otherwise specified. Not only does agriculture contribute to the economy through direct agricultural production and added value processing, it also plays an important role through the economy’s other sectors. Utilizing data from the United States Bureau of Economic Affairs and the State of Arkansas, the economic impact of agriculture on the Arkansas economy was estimated for the latest year available, 1999. Gross State Product (GSP) information for Arkansas was compared with that of other states in the southeastern U.S. to give a measure of the relative importance of agriculture in Arkansas compared with other states. The total impact of agriculture (direct, indirect, and induced effects) on added value, employment, and wage income was estimated by employing the Impact Analysis for Planning System (IMPLAN). Economic impacts of agricultural production and processing were estimated for agriculture as a whole and also separately for the crop sector, the livestock sector, and the forestry sector.

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