By DOUG GRAVES

Ohio Correspondent

COLUMBUS, Ohio — Looking for that occupation in Ohio which shows a small but steady increase in production and profits? Look no further than agriculture.

According to a three-year study produced by a team of agricultural economists from the College of Food, Agricultural and Environmental Sciences (CFAES) at The Ohio State University, Ohio farmers have been producing more and, on average, earning slightly more as well.

The report is called The Economic Contribution of Agriculture and Food Production to the Ohio Economy. “All the improved technology, rising crop yields, farmer ingenuity and lower prices for farm inputs have led to higher agricultural productivity,” said Tim Haab, one of the report’s authors and chair of CFAES’ Department of Agricultural, Environmental and Development Economics.

“We know there have been annual increases of 1.6 percent since the 1950s, but our report keyed in on data up to 2015, which were the most recent statistics available.”

Haab said farm incomes, too, have steadily improved, having increased an average of 2.2 percent a year since 2005.

Gov. John Kasich calls agriculture “Ohio’s strongest employer, using one out of every eight citizens in the state.” Combined, the state’s agricultural and food production cluster employed 402,874 Ohioans in 2015 and contributed $33 billion (5.3 percent) to the gross state product, a measure of the market value of all goods and services produced within the state.

“Along with the $33 billion, the state’s agricultural and food production cluster contributed an additional $20 billion to Ohio’s 2015 economy indirectly through farmer payments for various expenses, such as rent and accounting services, as well as income that farm employees used to buy goods and services,” Haab said.

He and his associates are quick not to make any future projections, only relying on data the past three years.

“Ohio farm income is going up, but slower than other parts of the state’s economy,” he said. “As we expected, increased productivity on the farm has led to decreasing commodity prices and a reduction in employment opportunities in agricultural and food production.”

Haab said since 1994, Ohio’s employment has declined 23.5 percent in the farm input sector, 38 percent in agricultural production (actual farming), 16.9 percent in food processing and 47.1 percent in food wholesaling and retailing.

“The loss of agriculture jobs is especially challenging for people living in Ohio’s rural areas, where employment opportunities are already limited,” he said. “Employment matters, especially in rural communities. Manufacturing and employment have been declining, disproportionately affecting rural communities.”

Consistent with national trends, the report shows that the food-processing sector in Ohio has seen a continuous decline since 2005. (Food processing involves changing anything that is grown or raised into a marketable product, such as cattle into steak or a tree into lumber). Haab said much of that decline was driven by the drop in demand for wood for either paper or furniture.

He said producers can be happy with the positive trends shown in Ohio’s restaurants and bars. These businesses have shown growth and have employed more people and contributed an increasing amount to the state’s economy since 1994. Restaurants and bars now employ 496,342 Ohioans, a 37.5 percent increase since 1994.

“This shows that agriculture and food production remains a vital part of Ohio’s economy,” Haab said.

Cathann Kress, vice president for agricultural administration and dean of CFAES, echoed Haab’s analysis of agriculture in the state.

“Agriculture and food production in Ohio continues to grow despite decreasing employment and decreasing commodity prices,” she said. “This report is an opportunity to help identify the trends and determine the implications so that all parties involved can work to ensure the future of rural communities and all of Ohio.”

The last report outlining the contribution of Ohio’s agriculture and food-related industries to the state’s economy was released in 2012. The next projection will be released in 2022.