On Monday, the Grand Junction Area Chamber of Commerce joined local stakeholders, elected officials, and agricultural producers for the release of a new study on the economic impact of agriculture in Western Colorado. The event brought together community members from various backgrounds to discuss the significance of agriculture in the region.
The report, commissioned by the Business Incubator Center and conducted by Dr. Nathan Perry of Colorado Mesa University, found that agriculture supports more than 9,100 jobs across Mesa, Delta, Montrose, Garfield, and Rio Blanco counties. This accounts for about five percent of total employment in these areas. The sector contributes over $280 million to regional gross domestic product and generates more than $50 million annually in federal, state, and local tax revenue. These numbers place agriculture among Western Colorado’s main economic sectors.
The study also highlights challenges facing local producers. While farm numbers have increased since 2002, total farmland has decreased and average farm size is shrinking. Over 80 percent of farms make less than $100,000 per year in sales. The producer population is aging; more than one third are over 65 years old while fewer than eight percent are under 35.
Producers reported that drought has had a significant effect on their operations in recent years—over 70 percent said they were directly impacted by it through reduced forage and lower hay yields. Other factors affecting profitability include labor costs, equipment expenses, fertilizer prices, maintenance needs, and regulatory compliance.
Many producers have diversified their income sources out of necessity rather than choice to keep their businesses running.
The Business Incubator Center’s AgriWest initiative played a key role by combining economic analysis with direct input from agricultural producers. This approach aims to give policymakers and business leaders a clearer understanding of what is at stake for agriculture in Western Colorado.
According to the Chamber: “From the Chamber’s perspective, this conversation is essential because agriculture operates as a core business sector in our regional economy. Farms and ranches are capital intensive enterprises that employ people, purchase goods and services, manage risk, and support local supply chains. When state level policies add cost, increase uncertainty, or fail to reflect regional realities, agricultural producers feel it first. Those impacts do not stop at the farm gate. They ripple outward through transportation, food service, manufacturing, and local government revenues.”
The report urges decision makers at all levels to consider its findings when shaping policy: “The findings in this report warrant close consideration by decision makers at every level. They should inform how policies are evaluated, how regulatory impacts are weighed,” reads part of the statement from organizers.
Community members interested in learning more can access the full Economic Impact of Agriculture in Western Colorado report through the Business Incubator Center website at https://gjincubator.org
