Farm Management
Agricultural and forestry operations generate a significant amount of direct economic activity in Alabama. In 2022, this was a combined total of $55.3 billion. This section highlights eight categories that make up the Alabama agricultural and forestry industries.
Agricultural Production Inputs and Processing
Agricultural Production
The value of agricultural commodities totals $8.85 billion in direct output. This includes $6.94 billion in livestock and poultry production and $1.16 billion in crop production. The major sectors of agricultural production include the following:
- Poultry and eggs—$6.32 billion
- Cattle—$501.5 million
- Cotton—$396 million
- Oilseed (including soybeans and peanuts)—$360.4 million
- Greenhouse, nursery, and floriculture—$343.8 million
- Grain farming—$329.2 million
- Catfish—$104 million
Value of Agricultural Production
Almost three-quarters of the $8.85 billion in direct output from agricultural production is generated by the poultry and egg sector, which for Alabama is primarily broiler chicken production. Beef production is a distant second, followed by cotton, green industries, and grain farming, which is primarily corn production. The key for the following chart shows the percentage of category total.
Value of Agricultural Inputs
Manufacturing of agricultural inputs totals $2.73 billion and is led by crop protection, which is almost twice as large as the second category—farm machinery. The next four categories could be considered all related to nutrient management, and if combined, would surpass machinery for the number 2 spot. The key for the following chart shows the percentage of category total.
Value of Food Processing and Manufacturing
Food processing is the second largest category of industry contribution with $17.74 billion but, like production, is dominated by poultry processing in Alabama with almost half the total value. Alabama also has large beverage and animal food manufacturing sectors as well as grain and oilseed processing. The key for the following chart shows the percentage of category total.
Value of Fiber Processing and Manufacturing
Alabama’s cotton production is backed up by strong fiber processing sectors, especially yarn and thread and broadwoven fabrics. The direct output for this sector totals $3.01 billion. The key for the following chart shows the percentage of category total.
Agricultural and Forestry Services
Two groups are included in agricultural and forestry services for this study. These groups are landscape and horticulture services and agricultural and forestry support activities. These services are reported in a single category because there is no method to separate agriculture and forestry.
Landscape and horticulture services make up the larger of the two service industries, totaling $1.4 billion. Included are activities such as arborist services; tree pruning, tree removal, and shrub services; lawn care; landscape installation and maintenance; and turf installation. This represents a significant part of the green industry in Alabama.
Agricultural and forestry support activities are a combined industry, including service activities that assist with production and immediate post-harvest handling that are not always completed by the producer. For agriculture, this includes activities such as pollinating, crop protection and nutrient application, harvesting, drying, ginning, cleaning, and packaging. Forestry includes activities such as forest management, pest control, and valuation services. The total combined direct value of agricultural and forestry support activities is $347.9 million.
Value of Forestry Processing and Manufacturing
- Landscape and horticultural services—$1.4 billion
- Agricultural and forestry support activities—$3.4 million
Forestry Production Inputs and Processing
Forestry Production and Inputs
The direct output value of forestry is $21.2 billion. Production activities include the following:
- Commercial logging—$604.1 million
- Forestry production—$69.1 million
Production of inputs to forestry in Alabama include the following:
- Sawmill, woodworking, and paper machinery—$131.7 million
Value of Forestry Processing and Manufacturing
Forestry processing is the largest industry sector in the combined agricultural and forestry industries for Alabama with $20.4 billion in direct output. Direct wood product processing and paperboard, paper, and sawmill manufacturing lead the category as the top four sectors with 55% of the total. The rest is scattered among various other wood product manufacturing. The key for the following chart shows the percentage of category total.
Adam N. Rabinowitz, Associate Professor and Extension Economist, and Dennis Brothers, Associate Extension Professor, both with Auburn University
This is an excerpt of Agriculture & Forestry Grow Alabama: An Economic Contribution Study, ACES-2817