We stopped in Terre Haute, Indiana on our annual trip to cover the Indianapolis 500 for the Missourinet and as we nibbled on our bad-for-us hamburger and fries, we found an article in the local newspaper, the Tribune-Star, by Morton J. Marcus that we know will upset the Missouri Farm Bureau and other farm-advocacy organizations, Governor Parson, our friends at the Brownfield network, and numerous other people who continue to advocate for something Marcus thinks is an anachronism: agriculture as an important part of Missouri’s (and Indiana’s) economy.

We offer this as food for thought in a changing world—which has an unchanging reliance on the subject on which Marcus’ appears to have some relevant points. You are welcome to add your grains of thought to his observations in our “comments” section.

The article appeared in the Tribune-Star on May 22. It was published in the Indianapolis Business Journal the next day.

Last week, the governor of Missouri was interviewed on NPR and stated that farming was the number one industry in his state. I’ve heard the same claim from Indiana politicians. In fact, one Hoosier solon claimed farming was “the backbone of Indiana’s economy.” I responded, “Every corpse has a backbone.”

Why do people in Missouri and Indiana believe such exaggeration? Perhaps, at one time (in the 19th century) it was true. Farming does take up a lot of the land we see when traveling from one place to another. Plus, the farm lobby is still disproportionately strong.

How important is farming? Folks from Purdue love to say, “If you eat, you’re are part of farming.” Oh, so true! Plus, if you eat, you’re part of trucking, dentistry, and waste disposal.

Let’s look at three different measures not provided by the biggest farm lobby of all, the U.S. Department of Agriculture:

First, value added, the part of Gross Domestic Product (GDP), our basic measure of economic activity, attributed to Agriculture nationally (including farming, forestry, fisheries and hunting) is 0.8%, or 19th of 19 private sector industries. Number one is (drum roll… ) real estate, rental and leasing at 13.3%, followed by manufacturing at 11.4% of GDP.

To be blunt, total value added from farming is less than 0.8% of the U.S. economy. What will the farm lobby say? “Well, you’ve got to remember farmers buy lots of stuff and lots of money passes through their hands that wouldn’t be spent if we didn’t have farming.”

No one is talking about not having farming! That’s the argument of a child, not an industry. We measure economic activity as the value of the goods sold less the value of goods purchased. That’s what we call value added. And the sum of value added by all economic activity in the marketplace is GDP.

For Missouri, agriculture (Ag) is 1.1% of the state’s GDP. For Indiana, Ag is 0.9% of the state’s GDP. In each of those two states, Ag is 19th of the 19 major private sector economic activities in GDP. Only in South Dakota does Ag exceed 5% of the state’s GDP.

Second, personal income, the sum of earnings, rent, dividends, interest, and transfer payments (Social Security, Medicare, unemployment compensation, etc.) are received by — guess who? — persons. Farm earnings are net of the expenses of farmers, but include government subsidies. How many carpenters, janitors, teachers, surgeons can say the same?

In the nation, farming accounts for 0.4% of total personal income. In Missouri, the figure is 0.46%, in Indiana 0.33%.

Third, jobs. Farming, fishing and forestry account for a lofty 0.34% of jobs in the U.S., 0.18% in Missouri, and 0.12% in the Hoosier Holyland.

These are data for 2018. Not 1820, which might have been the source for the governor of Missouri. They are from the U.S. Bureau of Economic Analysis and the U.S. Bureau of Labor Statistics, not the fake news agents working in the speech-writing cubicle of every statehouse.

A couple of observations from your, uh, loyal observer:  I grew up in a farming community, on a five-acre farm. We rented our pasture to people with horses. I spent summers baling hay and cutting weeds out of Illinois bean fields in the days before pre-emergent herbicides.  Today, it seems, the phrase “small family farm” is a phrase for a time long gone.  HOWEVER, there is no doubt that the people who farm, whether they are a dwindling number of individuals or operations that have become corporations for various reasons, raise the food that feeds a growing population.  But whether agriculture is the “backbone” of our state’s economy in the 21^st Century is an issue that Morton Marcus has rightfully raised.  Perhaps it is time to find a new defining phrase for the importance of agriculture.  But in doing so, we cannot forget that this industry that is a shrinking part of our total GDP is the source of our food.

A modern assessment of the economic value of agriculture in the greater scheme of the nation’s economy does not violate the old bumper sticker that says, “Don’t criticize agriculture with your mouth full.”  If anything, the comments from Marcus should make us appreciate, on a personal level, the importance to our well-being of agriculture in whatever business model its participants follow.

(Who is this Morton J. Marcus fellow?  He writes entertaining, informative, and sometimes provocative columns, a compilation of which you can find at https://howeypolitics.com/Content/Columns/Morton-Marcus/10/23.  He is director emeritus of the Business Research Center at Indiana University’s Kelley School of Business.  He taught economics there for more than thirty years and was an advisor on economic development and taxation to a half-dozen Indiana governors. One of his degrees in economics is from Washington University in St. Louis.  He has a bunch of other qualifications.  One write-up of his qualifications for his columns notes, however, “None of his advice has been taken.”)