Arizona Economy Getting Extra Fuel From Tree Nuts
April 15, 2020 Tree nuts are a healthy dietary option for many. Turns out they are healthy for a growing economy, too. According to a study conducted by the University of Arizona Cooperative Extension and the College of Agriculture and Life Sciences, tree nut crops have already gained a solid foothold in the state and continue to grow.
Arizona’s tree nut industry generated an estimated $92.6 million in direct sales in 2017, the study shows. That includes $70 million in pecans, $8.4 million in pistachios, $12.8 million through tree nut processing, and $1.4 million through other farm-related activities, such as agritourism.
The study’s lead researcher, Dari Duval, Economic Impact Analyst with Cooperative Extension and the Department of Agricultural and Resource Economics, says the total economic impact is actually higher, thanks in large part to work being done on orchards even before trees bear nuts.
“Because the state has a lot of new acreage, there are still many young trees that are not yet producing tree nuts,” Duval says. “Nonetheless, there are people working there to prune and irrigate those trees. So, when we look at industry sales, that new acreage isn’t necessarily reflected. However, the contribution to the economy is still significant because the producers are spending money maintaining those orchards.”
Researchers estimate that, including sales generated indirectly through multiplier effects, such as businesses supplying tree nut producers with goods and services and industry employees spending their income at local businesses, the tree nut industry’s total contribution to the Arizona economy was $190 million in sales in 2017, and $113 million in gross state product. Duval says the industry supported 1,436 jobs in 2017, generating $73 million in labor income.
Because of the large amount of acreage yet to mature into production, Duval thinks it’s safe to assume that pecan and pistachio production will continue to grow in Arizona. In 2017, 38% of the state’s total tree nut acreage was nonbearing. She says total industry acreage more than doubled between 2007 and 2017. In 2017, 343 Arizona farms produced tree nuts, totaling 35,261 acres.
The study was funded through a USDA block grant program designed to improve the competitiveness of specialty crops, like tree nuts. Researchers used data from 2017, which is the most recent year when complete statistics were available.
Click here to read the full report, which also factors in water inputs.
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