A new report shows agriculture pumps nearly $10 billion annually into the Merced County economy.
Merced Sun-Star File Photo
In August the Merced County Department of Agriculture released a special report titled, “Economic Contributions of Merced County Agriculture” which showed that in 2023 agriculture in the county contributed $9.93 billion to the local economy. Some $7 billion was from the direct economic output of farm production, and $2.88 million billion from multiplier effects.
The report is the first of its kind for the county, according to Merced County Agricultural Commissioner Sean Runyon.
“It’s an additional report and it goes a little bit further than our typical reports,” said Runyon, “Our typical annual reports focus on the gross values that farmers produce, and this one … looks at a little bit broader range of … the real economic effect that agriculture has on the county.”
While the county’s annual crop report shows only the direct economic impact of farm production values, August’s special report also accounts for “multiplier effects,” or contributions to the economy that would not exist if it weren’t for agriculture. Production multiplier effects include local food processing as well as contributions to local industries such as retail and food service which serve employees in the agricultural sector.
The report was produced with a consulting firm, Agricultural Impact Associates based in Monterey, that specializes in agricultural economics. The firm used data from the USDA as well as their own research.
Runyon said he expects the report to be used by land planners and insurance agents for strategic planning and that he will use the data from the report to advocate for funding for Merced County agricultural programs.
Livestock and poultry products had the greatest economic impact followed by vegetable, fruit, and nut crops.
The report determined that 22,862 jobs in Merced are created directly by the agriculture industry as well as another 15,938 employees whose jobs are created supporting agricultural workers, 38,800 jobs total. It also noted that one in five jobs in Merced County can be attributed to agriculture.
In its introduction, the report said that agriculture clearly plays a vital role in Merced’s economy, but the objective is to understand exactly how much money it brings the local economy and the ways that agriculture is important to the county’s economic health.
According to the report, the diversity of agricultural products in Merced “has been a key to resilience in unpredictable times.” Because the county produces a variety of animal products as well as a wide range of fruits, vegetables, and nuts it is better able to withstand tough conditions like drought and pests.
The authors of the report note that agriculture has a long tradition in Merced County both economically and culturally. “One thing I appreciate a lot about this is… it’s a reminder,” said Runyon, “You don’t ever want to take anything for granted…we’re the fifth leading county in terms of production in the entire nation.”
This story was originally published September 26, 2025 at 10:06 AM.
Aysha Pettigrew is the economic mobility reporter for the Merced Sun-Star and a California Local News fellow. Prior to this role, Pettigrew worked as an administrator for the UC Berkeley Investigative Reporting Program.
