Governor Youngkin along with my team in the Agriculture and Forestry Secretariat have worked tirelessly to focus on the growth and development of our agricultural industry. Every five years the U.S. Department of Agriculture (USDA) conducts a Census of Agriculture across the nation. The recently released 2022 census highlighted some startling results about current trends, the commonwealth’s continued farming challenges, and reaffirmed our efforts towards a sustainable agricultural future in Virginia.
Virginia’s agricultural sector is the backbone of our economy, contributing over 381,000 jobs and a staggering $82.3 billion in total economic impact annually. The census however paints a sobering picture of a decline of over 10% in the number of farms, coupled with the loss of 500,000 acres of precious farmland. Most concerning is the trend of consolidation, with larger operations expanding while smaller farms struggle. In fact, a mere 7% of farms in Virginia account for 88% of the state’s agricultural output, stifling growth and diversity for smaller farmers.
Compounding these challenges is the aging demographic of our farmers, with the average age now at 59 and rising. With only 8% of farmers falling into the under-35 age group, the question of who will lead the next generation of agriculture looms large.
The findings from the 2022 Census of Agriculture serve as a reaffirmation of our direction, highlighting the urgent need for targeted initiatives and collaborative efforts to propel Virginia agriculture towards sustainable growth and prosperity. For our next generation of farmers and agricultural workers this work is vital.
Over the last two years we have taken steps to improve the economic infrastructure of rural communities across the commonwealth, through strategic investments utilizing the Governor’s Agricultural and Forestry Industries Development Fund (AFID) program. This fund, with its discretionary, performance-based incentives, serves as a catalyst for partnerships creating growth in value-added or processing projects within agriculture and forestry. Through AFID, we don’t just support individual facilities; we along with the partnering locality invest in the success and prosperity of our entire agricultural and forestry industry. As of today, nearly 141 businesses have successfully used $13 million to make nearly $1.6 billion in new investment, create over 4,644 new jobs, and commit to purchase over $1.5 billion of Virginia-grown products.
With the current average age of a Virginia farmer reaching 59, new and beginning farmers are crucial to feeding a growing population. Our administration has been focused on supporting the next generation through our Beginning Farmer Finance and Conservation Seminars to help address the barrier of accessing capital. Our four seminars held across the commonwealth brought together numerous agriculture finance lenders and partners to develop a free one-day learning seminar. Continuing agriculture education and interest into the sector is vital as we recruit and retain the next generation of farmers to keep the family farm or start anew. These resources are now up on our website www.ag-forestry.virginia.gov/events and provide a wealth of information to all those interested.
In an effort to support Virginia produce and local products we are working with major retailers to reignite the use of our Virginia Grown and Virginia Finest brands. As we look toward the future it is imperative that we identify and disseminate alternative pathways for farmers to find new sustainable markets to keep their farms profitable. Our work with the Virginia Economic Development Partnership and our many agriculture stakeholder organizations such as the Virginia Farm Bureau and the Virginia Agribusiness Council will only increase these types of opportunities.
Farming is constantly evolving and innovative technologies such as Controlled Environment Agriculture (CEA) have engaged a new generation of farmers. Virginia has grown to become a national leader in CEA through capitalizing on state economic incentives, tax exemptions, top notch research and workforce training. The results are real. We are now home to dozens of CEA companies, and more are considering making the Commonwealth of Virginia their home. Some companies such as Plenty, Bright Farms and Greenswell Growers have chosen Virginia for those very reasons. Bringing job opportunities and economic development along with new technology will continue to attract this next generation of farmers.
While the results of the 2022 Census of Agriculture are concerning, the efforts being made by the Youngkin Administration are addressing several of those troubling statistics. Through these efforts, we are continuing to strengthen our rural communities, create new marketing opportunities for products, assist the efforts of those beginning farmers and develop an infrastructure to increase more opportunities for high tech indoor agriculture. It is our commitment to see our largest private industry continue to thrive and grow for generations to come.