Agriculture in Arizona’s Economy: The Role of Modeling and Implications for Water Management

This presentation will highlight results of an input-output (I-O) modeling exercise measuring the contribution of Arizona’s agribusiness system to the state’s economy.  The agribusiness system includes crop and livestock industries as well as industries that supply and support on-farm production, food and fiber processing industries, and companies that market and distribute agricultural products. Through a combination of direct and multiplier effects, the agribusiness system contributed $23.3 billion in sales and more than 138,000 jobs to Arizona’s economy. Other I-O model results highlight unique features of Arizona agribusiness such as processed food manufacturing, high-value specialty crop production, livestock and dairy production (and supporting forage crop production), and the marketing and distribution of agricultural imports from Mexico.  The presentation also briefly discusses the potential of I-O models to measure economic impacts of water shortages on Arizona’s agribusiness and broader economy

George Frisvold received his baccalaureate and doctoral degrees from the University of California, Berkeley. He worked for eight years as an economist and branch chief at the US Department of Agriculture. From 1995 to 1996 he served as a senior economist for the President’s Council of Economic Advisers.  He is currently an associate editor for Water and Economic Policy and for Pest Management Science.