Michigan Vegetable Farming and Processing Drive Strong Economic Contribution

By Andi Anderson

Vegetable farming and processing play a major role in Michigan’s agri food system according to a recent economic study supported by the Michigan Vegetable Council.

The analysis was conducted by the MSU Product Center Food Ag Bio to measure how vegetables contribute to the state economy at both the farm and processing levels.

Michigan’s climate and sandy and muck soils make the state well suited for growing vegetables. These conditions are less suitable for crops like corn wheat and soybeans.

In 2022 Michigan had 3,213 vegetable farms producing crops on more than 152,000 acres. The state ranks among national leaders for several vegetables including asparagus squash cucumbers and snap beans.

Using IMPLAN economic modeling software the study estimates that vegetable farming generates about 1.19 billion dollars in annual sales. When indirect and household spending effects are included the total contribution rises to approximately 2.11 billion dollars.

Vegetable farming is estimated to directly employ about 7,800 workers with a total employment impact of around 13,000 jobs across the state. These figures likely underestimate actual employment because some migrant labor may not be fully counted.

Vegetable processing adds even more value to the Michigan economy. About 60 percent of vegetables grown in the state are processed. Michigan has dozens of frozen and canned food processing facilities and is home to major processors.

Strong crop quality and proximity to large markets help make Michigan competitive in this sector.

The study estimates that vegetable processing generates about 1.92 billion dollars in direct sales each year. Including indirect and induced impacts the total economic contribution reaches about 3.28 billion dollars.

Processing facilities directly employ more than 4,400 workers and support a total of approximately 13,400 jobs statewide.

When vegetable farming and processing are combined the total economic contribution to Michigan is estimated at about 5.39 billion dollars. Together the sectors support roughly 26,400 jobs.

While these estimates are considered conservative they clearly show the importance of vegetables to Michigan agriculture.

Despite challenges such as rising input costs labor shortages and regulations the vegetable sector remains stable and resilient.

The study confirms that vegetable farming and processing are essential to Michigan’s economy supporting food production employment rural communities and long term agricultural sustainability.

Photo Credit: gettyimages-zbynek-pospisil