LEXINGTON, Ky. — The state’s agriculture economy has grown, as indicated by record cash receipts farmers received over the last couple of years – but just what kind of overall impact the ag industry has on the economy is another set of data.

A new study from the University of Kentucky (UK) took a broad look at the ag industry and came up with some interesting numbers.

The Community and Economic Development Initiative of Kentucky (CEDIK) found agriculture’s total impact on Kentucky’s economy equaled $45.6 billion in 2013, an 8.3 percent increase over 2007’s figures, according to information released by UK.

The report was based on three agricultural activities: on-farm production, processing and agricultural inputs. Associate professor Alison Davis of the UK College of Agriculture, Food and Environment’s Department of Agricultural Economics co-authored the report. She said the purpose of the study was to look at agriculture in a more comprehensive way and not just on-farm employment.

"There can be a miscomprehension that, because there is not a significantly large number of on-farm workers, agriculture is an insignificant contribution to the state’s economy," she said.

"Agriculture has a broader scope than just on-farm employment, and this study illustrates that."

The report notes: "Total output for the entire agricultural industry crested $31.3 billion, accounting for nearly 8 percent of Kentucky’s total output. Output is measured by the dollar value, or market value, attached to the product. The sector employed nearly 136,000 workers, a 5.6 percent share of employment across all of Kentucky’s industries."

The numbers supported by the report don’t include all things related to the industry, including any professional services dedicated to agriculture, said Davis. She added while some of the numbers are not "gigantic," they’re not insignificant, either. Davis, who also serves as CEDIK executive director, said the report gives ag real numbers to work with and if supportive services not included in the report were added in, it would mean even more employment and leverage in these discussion points.

The report shows an interesting contrast in relationship to market value of agricultural products and the number of farms in the state.

Between 2007 and 2012, market values rose from $56,586 to $65,755 average per farm, while farm-related income rose nearly 60 percent for the same period – at a time when the number of Kentucky farms decreased by 9 percent with a 6.7 percent drop in the number of acres being used for agricultural production.

In fact, the latest USDA ag census showed Kentucky led the nation by percentage in the decrease of farms during that same time period. But census numbers also showed an increase in the size of farms from an average of 153 acres in 1997 to 169 in 2012.

The study noted: "For every job within the agricultural inputs sector, an area that includes such things as fertilizer, feed and pesticides, 2.71 other jobs were created. Within the production sector, $8.09 was generated for every dollar spent to grow vegetable and melon crops, while cattle ranching generated an additional 43 cents and oilseed and grain crops generated an additional 44 cents from every dollar spent."

While this study shows agriculture may not be the biggest industry in the state, it is still an important one.

The last economic impact study was conducted in 2007. To see the entire study, go to http://cedik.ca.uky.edu/files/REPORT_Importance_of_Ag_KY_2015.pdf