County report: Merced agriculture supports nearly $10 billion in local economic activity, authors say

Merced County’s agricultural industry generated nearly $10 billion in total economic activity in 2023 when farm production, local food processing and multiplier effects are combined, consultants told the Board of Supervisors at its Aug. 26 meeting.

The county’s agricultural commissioner, Sean Runyon, introduced consulting economists Dr. Fernando de Paul and Dr. Jeffrey Langholz, who presented a 24‑page report that expands on the department’s annual crop values by modeling local processing, business‑to‑business spending and induced household spending.

“The total contribution of Merced County agriculture in 2023 … was almost $10,000,000,000,” Dr. de Paul said during the presentation, and he added that every dollar of agricultural output “creates economic ripples throughout Merced County.” The consultants reported roughly $4.22 billion in farm production, about $2.82 billion in local food processing, and about $2.89 billion in multiplier effects. Employment tied to agriculture was estimated at about 38,800 jobs — 22,862 direct jobs in production and processing plus 15,938 jobs from multiplier activity.

The report also measured commodity diversity within the county’s agricultural sector and found a diversification score of 0.6, which the presenters said is high for California counties and indicates resilience to shocks such as price swings or disease outbreaks. The presenters said milk and dairy products remain the county’s largest commodity contributors.

Supervisors and public commenters said they expect to use the report for economic development outreach. “This is probably a place where you can highlight this report to show folks,” Supervisor Silvera said during the board’s discussion, referencing the county’s inland port planning and recruitment conversations. Brianne Vandenberg, executive director of the Merced County Farm Bureau, told the board the Farm Bureau expects to use the study when advocating at state and federal levels.

Runyon told the board the county has made the report and an executive summary available online and via a QR code on the presentation slides. The consultants said they used standard input‑output methods and an economic “multiplier” framework to convert farm receipts into broader local impacts.

The presentation concluded with the consultants’ three main takeaways: agriculture is a very large economic output for Merced County; it is the county’s largest industry for output and employment; and it shows a high level of economic resilience.

The board did not take formal action on the report; staff said the study is intended as a tool for policymakers and economic development efforts.