Agriculture’s Contribution to Hawaii’s Economy

Abstract

In this publication, we examine four methods of estimating agriculture’s economic activity. First, the most common measure used historically in Hawaii has been the farmgate value of production agriculture. To avoid the limitations of the farmgate value method, economists use the concept of “value added” to measure the contribution of an industry. Employment provides a third indicator for measuring the contribution of an industry to the economy. And fourth, economists often use economic input-output models to provide measures of linkages of an industry to the entire economy. Despite the recent demise of sugar, production agriculture, forestry, fisheries, agricultural services, and agricultural processing remain vital contributors to Hawaii’s economy by providing a diversity of products and generating jobs and incomes.