Study: Michigan vegetable farming, processing drive major growth in state economy

Michigan’s vegetable farming and processing industries contribute $5.39 billion annually to the state’s economy and support approximately 26,400 jobs. That’s according to a new economic study commissioned by the Michigan Vegetable Council and Michigan State University.

The study, prepared by Dr. William Knudson of MSU’s Product Center Food-Ag-Bio, will be publicly released Wed., Dec. 10, during a press conference at the Great Lakes EXPO.

According to the report, vegetable farming generates $1.19 billion in sales and contributes $2.11 billion to Michigan’s economy, while employing more than 13,000 workers. The Wolverine State is one of the nation’s leading vegetable-producing states, ranking near the top in asparagus, pickling cucumbers, squash, dry beans, and potatoes.

The state’s processing sector adds another $1.92 billion in direct sales and $3.28 billion in total economic contribution, supporting more than 13,400 jobs, the study finds.

“It’s exciting to see just how much Michigan’s vegetable industry contributes to our state’s economy,” said Jerry Neyer (R-MI), House Agriculture Committee Chair, in a press release announcing the new study.

Neyer said the report shows the strength of Michigan’s growers and in-state processing industry.

“I commend the Michigan Vegetable Council for commissioning this study and for their commitment to producers of all shapes and sizes across our state,” said Neyer.

Michigan’s competitive strengths amplified

The report notes Michigan’s unique soils and climate give growers a natural advantage in producing high-quality vegetables. In addition, more than 60% of Michigan vegetables are processed in-state.

“Michigan’s vegetable processing industry is a critical asset to the success of Michigan’s asparagus growers,” said Jamie Clover Adams, executive director, Michigan Asparagus Advisory Board. “These facilities multiply the economic value of what our farms produce, create year-round jobs and support local businesses, from input suppliers to trucking companies.”

Industry faces ongoing pressures

The study also acknowledges several headwinds for Michigan vegetable growers, including rising input costs, labor shortages and regulatory pressures. Despite these challenges, overall vegetable farm sales have remained steady and Michigan continues to play a critical national role in numerous key crops.