Brandon Leaullen, The Business Times

For years, agriculture in Western Colorado has been discussed in fragments, from county statistics and commodity reports to anecdotal accounts from producers facing drought, rising costs and development pressure.

A regional study released this month brings those elements together, offering a consolidated, data-driven look at agriculture as an economic engine and a business sector under growing strain.

According to the Business Incubator Center, the study was developed as a baseline resource for future planning. By combining census data, producer survey results and economic modeling, the report provides a shared reference for policymakers, lenders, conservation organizations and economic-development agencies.

The Economic Impact of Agriculture in Western Colorado study was commissioned by the Business Incubator Center and released through AgriWest in partnership with the Colorado Mesa University School of Business. It was presented by Dr. Nathan Perry, assistant professor of economics at Colorado Mesa University, spans five counties (Mesa, Delta, Montrose, Garfield and Rio Blanco) and was formally introduced Jan. 19 during a public presentation attended by ag producers, economic development leaders and community stakeholders.

Agriculture’s economic footprint

According to the study’s economic contribution analysis, agriculture supports an estimated 9,123 jobs across the five-county region when direct, indirect and induced employment are included. The report attributes approximately $281.7 million in regional gross domestic product to agricultural activity and estimates total output at $719.1 million.

The study identifies agriculture’s economic reach as extending well beyond farms and ranches themselves. Processing, transportation, equipment sales, feed suppliers, veterinary services and other supporting industries account for a significant share of agriculture’s total contribution.

In fiscal terms, the study estimates agriculture generates approximately $20.3 million annually in combined state and local tax revenue across the region, along with an additional $33.9 million in federal tax revenue.

What producers reported

Producer survey highlights from the AgriWest study include:

• 71.8 percent of responding producers reported being directly impacted by drought within the past three years.
• Rising input costs were widely reported, with increases noted in feed, fuel, labor, fertilizer, equipment and maintenance.
• Higher costs limit producers’ ability to reinvest in infrastructure or absorb production losses.
• Workforce availability emerged as a challenge as producers reported: difficulty recruiting and retaining seasonal and specialized labor; increasing reliance on family labor; and reducing operational flexibility.
• 35-44 percent of producers are over 65 years old and less than 8 percent are under 35, raising long-term agricultural succession concerns.

Census data in the study show the market value of agricultural products sold has fluctuated during the past two decades, rising from about $98.1 million in 2002 to a peak of roughly $114.2 million in 2017 before declining to approximately $90.8 million in 2022, in inflation-adjusted dollars. 

While total agricultural sales have fluctuated since 2002, per-farm finances have steadily weakened. Average farm size declined from 241 acres in 2002 to 114 acres in 2022, and median farm size fell from 24 acres to 10 acres.

Over the same period, average sales per farm dropped from about $61,000 to $38,600, while net cash income per farm fell from roughly $4,900 to under $1,900. Although government payments increased sharply in 2022 due to pandemic and Farm Bill programs, the data show that long-term farm profitability has continued to erode.

Ag census data in Mesa County

According to the study’s review of U.S. Agricultural Census data in Mesa County, the number of farms has increased over time, even as total farmland and average farm size have declined, indicating a shift toward smaller operations.

Smaller livestock are becoming a larger percentage of livestock produced with cattle and calves inventory dropping from 45,071 in 2002 to 27,155 in 2022, while sheep and lambs inventory rose from 3,111 to 17,251. 

At the same time, the study identifies Mesa County as continuing to be a strong agricultural producer, particularly in fruit tree, nut and berry production. The report places Mesa County among the region’s key contributors to specialty crop production, even as broader land-use and farm-structure trends continue to evolve.

Ongoing presentations 

Additional public presentations of the Economic Impact of Agriculture in Western Colorado study are scheduled later this month.

A presentation for Garfield and Rio Blanco counties will take place Jan. 29, 5:30 to 7 p.m,. at the Garfield Fairgrounds and Event Center, 001 Railroad Ave. in Rifle.

A presentation covering Delta and Montrose counties is scheduled for Jan. 30, 5:30 to 7 p.m., at the Montrose County Event Center, 1036 N. Seventh St. in Montrose.

Meals will be provided at both events, sponsored by the Garfield County Farm Bureau and Montrose County, respectively.

The full Economic Impact of Agriculture in Western Colorado study is available through the Business Incubator Center’s AgriWest program.