The beef cattle industry in Minnesota contributes nearly $5 billion to the state’s economy, according to a recent economic analysis conducted by University of Minnesota Extension.
The study also found that the beef industry directly employs an estimated 30,000 part- and full-time workers, in addition to its support of 16,900 jobs in nondirect industries.
“The overall economic impact of beef has not been calculated before. What we found is that with beef raised at just over 16,000 operations, the industry contributions are significant,” says Brigid Tuck, Extension senior economics analyst. She studied data from 2015, including information from USDA as well as a survey of 400 beef farmers across the state.
Among the findings:
• Beef accounts for 24% of the state’s livestock cash receipts. Receipts by other animals were hogs, 33%; dairy, 21%; poultry and eggs, 17%; and others, 2%.
• Beef cow-calf operators reported spending an average of $62,600 on operations. Feed-related expenses account for 72% of their costs. On average, each operator spent an estimated $44,600 on feed, with hay being the largest purchase.
• Ninety-four percent of beef producers' expenditures were made in Minnesota. Of that number, nearly three-quarters of the expenditures were local, defined as sourced within 30 miles of the farm.
• Fifty-seven percent of surveyed feedlot operators either expanded (42%), upgraded (31%) or built a new facility (27%) within the last decade. On average, each feedlot operator invested $24,900 in the project, increasing the capacity of the feedlot by 33 head.