The U.S. food and agriculture sector continues to serve as one of the nation’s most significant economic drivers, generating more than $10.4 trillion in economic activity and supporting nearly one in five American jobs, according to the 2026 Feeding the Economy report.

Now in its 10th year, the report provides a comprehensive look at the industry’s impact across the full supply chain, from production agriculture through food manufacturing, distribution, retail and foodservice. For the milling industry, the findings reinforce the scale of the system it supports and the growing importance of maintaining strong connections with downstream markets such as baking.

The report estimates that food and agriculture directly contribute $4.33 trillion in output, or about 8.24% of total U.S. economic activity. When supplier and consumer spending impacts are included, total economic output rises to more than $10.4 trillion.

From grain to finished goods

The structure of the food and agriculture economy reflects a tightly connected system in which activity at one stage drives output across multiple others.

At the foundation are nearly 2 million U.S. farms and ranches. From there, commodities move into a network of food manufacturing, processing and storage facilities, where value is added before products are distributed to retail and foodservice channels.

The report identifies food manufacturing as the largest manufacturing sector in the United States, employing more than 2.28 million workers. For milling operations, this places grain processing at the center of a system that transforms raw agricultural inputs into finished food products.

This interdependence is a defining feature of the industry. Economic activity within food and agriculture extends beyond direct operations and into supplier industries, including equipment manufacturing, transportation, financial services and logistics.

Supplier industries alone account for more than 12.1 million jobs and generate approximately $3.27 trillion in economic activity. These connections highlight the broad footprint of food production and processing across the U.S. economy.

Employment remains broad, but growth slows

Employment continues to be one of the clearest indicators of the sector’s reach.

According to the report, food and agriculture support approximately 48.7 million jobs nationwide, including 24.3 million direct jobs across farming, manufacturing, processing, distribution, retail and foodservice.

While employment has increased 6.5% over the past decade, growth has slowed in the most recent year. Direct employment in production agriculture and food manufacturing remained largely flat, reflecting continued economic pressure across parts of the supply chain.

For milling and processing operations, this trend aligns with broader industry conditions, including tight labor markets, rising input costs and increased reliance on automation to maintain throughput.

The report also highlights the sector’s role in wage generation. Food and agriculture industries account for more than $3 trillion in wages, with compensation rising 4% year over year and 13% over the past decade.

Exports, trade and market access

International trade remains a key component of the food and agriculture economy, particularly for grain and processed products.

U.S. food and agriculture exports totaled more than $177 billion in 2026. However, export values declined by approximately $5.4 billion year over year, and inflation-adjusted exports have trended downward over the past decade.

These shifts underscore the importance of stable trade relationships and market access for U.S. producers and processors.

For milling operations, export demand influences grain flows, pricing and capacity utilization. Changes in global trade dynamics can directly affect processing volumes and supply chain efficiency.

Tax contributions and economic impact

The economic reach of food and agriculture extends into public finance as well.

The report estimates that the sector generates approximately $1.35 trillion in federal, state and local tax revenue . This includes business taxes, income taxes and other levies tied to industry activity.

These contributions support infrastructure, public services and rural economies, where food production and processing often serve as primary economic anchors.

In many regions, milling facilities play a central role in local economies, providing stable employment and supporting related industries such as transportation and storage.

Baking sector highlights downstream demand

The report also highlights the strong connection between agriculture and the baking industry, a key downstream market for milled grain products.

Commercial bakers source approximately 85% of their core ingredients from domestic farmers, reinforcing the reliance of the baking sector on U.S. agricultural production.

According to the American Bakers Association, the baking industry supports nearly 800,000 jobs nationwide and plays a critical role in ensuring access to affordable food products.

This relationship underscores the importance of maintaining consistent grain quality, reliable supply chains and efficient processing operations.

New alignment across North American baking

At the same time, industry organizations are working to strengthen coordination across the supply chain.

The American Bakers Association, Retail Bakers of America and Baking Association of Canada recently signed a memorandum of understanding to explore a strategic relationship aimed at strengthening the baking industry across North America.

The agreement is intended to improve collaboration, expand industry programming and enhance cross-border engagement among members. Each organization will continue to operate independently while identifying opportunities to align efforts and share resources.

ABA President and CEO Eric Dell said the agreement comes at a time when the industry is navigating increased regulatory pressure and changing consumer preferences.

“At a time when the industry is facing headwinds from increased government activity and rapidly changing consumer preferences, this strategic relationship is more important than ever,” Dell said. “It represents a significant step forward for the entire North American baking industry.”

Retail Bakers of America Executive Director Marissa Sertich said the partnership will help ensure that retail bakers maintain a strong voice within the broader industry.

“Retail bakers play an integral role in communities across North America,” Sertich said. “By working alongside ABA and BAC, we can ensure that retail bakers’ voices remain strong through the expansion of knowledge sharing and industry visibility.”

BAC Executive Director and General Manager Martin Barnett said the agreement builds on existing collaboration while strengthening the industry’s ability to support both retail and commercial bakers.

This alignment is expected to evolve further in the second quarter of 2026.

Challenges across the supply chain

Despite its scale and economic importance, the report points to several challenges facing the food and agriculture sector.

Flat employment in production agriculture and manufacturing reflects ongoing financial pressure on producers and processors. Rising costs for labor, energy and transportation continue to affect margins across the supply chain.

At the same time, declining export values and shifting global demand patterns add uncertainty for U.S. agriculture.

For milling operations, these pressures may translate into increased focus on efficiency, cost management and long-term planning.

Investment in automation, energy optimization and supply chain coordination is likely to remain a priority as companies adapt to changing conditions.

A system defined by connectivity

The Feeding the Economy report reinforces that food and agriculture operate as a highly interconnected system, where activity in one segment drives outcomes across many others.

Input-output modeling used in the study shows how spending within the sector generates additional economic activity in supplier industries and through consumer spending.

Induced impacts alone account for more than 12.2 million jobs and $2.82 trillion in economic output .

For the milling industry, this interconnected structure highlights the importance of maintaining strong relationships across the supply chain, from grain producers to end users.

Looking ahead

As the food and agriculture sector continues to evolve, the data from the 2026 report point to both opportunity and complexity.

The industry remains a cornerstone of the U.S. economy, but growth is uneven and influenced by a range of factors, including trade policy, input costs and consumer demand.

For milling and processing operations, the challenge will be balancing efficiency and adaptability while supporting a supply chain that is both large and increasingly dynamic.

The strengthening relationship among baking organizations across North America reflects a broader recognition that collaboration will be essential in navigating these changes.

At the same time, the scale of the industry’s economic impact underscores its importance not only to agriculture, but to the broader U.S. economy.

Sources
Feeding the Economy Report, 2026; U.S. Food and Agriculture Industries Economic Impact Study