Idaho agriculture hits annual sales record with nearly $45B

A recent study from the University of Idaho detailed the significant impact the agricultural industry has on the state’s economy.

Authored by Professor Philip Watson, the study, titled “Economic Contribution of Idaho Agribusiness 2025,” showed that the industry was responsible for record annual sales totaling $44.5 billion, contributing to 17.2% of the state’s overall economic output.

According to the study, that places Idaho in the top five states for agricultural sales. Not only does the study look at direct agricultural numbers, it also considers the “ripple effects” the industry has on the economy, such as sales made for ag in the fertilizer and chemicals industries, and farmers’ living expenses.

The report detailed that one in nine jobs in Idaho are agricultural-related, and the industry employs 137,900 people.

Watson, who is an educator in the Department of Agricultural Economics and Rural Sociology, used 2024 data from a recent U of I report, data from the USDA National Agricultural Statistics Service, and “analysis from IMPLAN, which is a private economic impact modeling company, regarding agriculture’s linkages with other economic sectors,” a release from the university stated.

The report is updated every three years to record the growth of the industry and how it pertains to the statewide economy.

“Our College of Agricultural and Life Sciences likes to take these reports to Boise when the Legislature is in session to make sure people understand the scope of agriculture in Idaho,” Watson said. “Agriculture is growing, and this is the largest contribution of agriculture into the Idaho economy in history.”

In 2022, the last time the report was published, agricultural sales were $37.5 billion and jobs totaled 126,800. The new report shows that the percentage of the agricultural industry on the statewide economic output has
remained relatively flat,” and has increase just 0.2% during the past three years.

Nationwide, Idaho remains first out of the 50 states for potatoes, barley, alfalfa, trout and peppermint oil; second in hops; and third in sugar beets, milk and milk cows, the report showed.

Because of the growth of the state’s food processing industry, keeping many commodities within the state. That has kept agriculture exports to other countries around $2.8 billion since 2022.

“Idaho’s farm sector used to be much larger than the processing sector, and that has changed within the past five years, which is a really good thing for Idaho,” Watson said. “Rather than shipping out our raw milk and our raw potatoes, we are now capturing more of that added value in the state by processing them here. I think it’s showing a maturing agricultural industry.”

In the February 2026 report, Watson pointed out just how integral agriculture remains to Idaho’s overall economy.

“Agriculture is a very large part of the Idaho economy, and it’s connected to so many other parts of the Idaho economy,” he said. “It’s not just cows and plows and farms and potato chip companies. It’s woven into the economy in very deep ways.”