College of Agriculture

Annual Report Details Ag’s Economic Contribution

Announced on: Tuesday, July 06, 2021

Background image features a tractor harvesting an orchard alleycrop, with the title "The Contribution of Agriculture to Northeastern California’s Economy in 2019" printed in the foreground.Improved prices and strong production levels in 2019 helped boost net farm income in northeastern California by 36 percent from its 10-year low in 2017, according to the latest annual report (PDF) from the Agribusiness Institute (ABI) at California State University, Chico. “The Contribution of Agriculture to Northeastern California’s Economy in 2019,” written by ABI director and agricultural business professor Eric Houk, analyses the direct economic impacts of agricultural production, processing and related industries, as well as the indirect and induced multiplier effects of the industry. 

Using data from prior to the COVID-19 supply chain disruptions, the report also determined that agriculture added $5.6 billion to the northeastern California economy in 2019—or 15.8% of the region’s economic output. That is more than double the relative economic impact of agriculture statewide, where agriculture generated 6.8 percent of the state’s economic output.

“Relative to the state as a whole, the economy of northeastern California is significantly more dependent upon agriculture in terms of employment, labor income, and value added,” Houk explained.

“The Contribution of Agriculture to Northeastern California’s Economy in 2019” is supported by U.S. Department of Commerce, Economic Development Administration and the California State University Agricultural Research Institute. The report covers economic activity in Butte, Colusa, Glenn, Lassen, Modoc, Plumas, Shasta, Sierra, Siskiyou, Sutter, Tehama, Trinity and Yuba Counties.

The full report is available online on the CSU, Chico ABI webpage. For more information, contact Eric Houk at 530-898-4146 or

In addition to the production of this annual report, the ABI provides agricultural business expertise in the areas of education, marketing, human resource development, management, and finance. Within this mission, there is focus on enhancing learning experiences, involving faculty in professional development activities, and serving the needs of agribusinesses in California and other Western States.