Historically, milk has been Washington’s second leading agricultural commodity in terms of value of production following apples. In 2007, milk may become Washington’s leading agricultural commodity due to much improved milk prices over 2006. Further when you consider livestock sales from cull cows and calves in addition to milk’s value of production, dairy production is a vitally important agriculture commodity in Washington’s economy. Cash receipts generated by milk production and livestock sales are important measures of dairy farms’ direct economic impact on Washington State. In addition to direct economic impact, dairy farms indirectly impact the local economy through purchases of inputs such as labor, services, equipment and feed. More generally, Washington’s economy is affected by income and employment growth within the dairy industry and its supporting businesses. Through this cycling of dollars and industry linkages, economic changes in the dairy sector have an impact on the general economy in Washington that is considerably greater than its direct effects alone. The purpose of this report is to describe the economic state, conditions and trends for Washington State dairy farm production and to estimate its state level economic impact. Measures of economic impact are estimated using an input-output (I/O) analysis, whic
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