This study quantifies the contribution of cotton farming and ginning to Arizona’s economy in 2022 (the year of the most recent USDA Census of Agriculture). We estimate the direct contribution, as well as additional economic activity supported through multiplier effects in industries outside of cotton production. Indirect multiplier effects capture economic activity in non-agricultural industries that provide goods and services as inputs to Arizona cotton production. Induced multiplier effects capture economic activity in industries that provide consumer goods and services to households earning income from the cotton industry. Direct, indirect, and induced effects combined measure the total economic contribution to the state’s economy. In addition, we offer an overview of trends in pesticide use and water efficiency related to cotton production.
Main findings
Cotton farming and ginning are strategic sectors for agricultural production in Arizona.
- In 2022, cotton and cottonseed1 sales were $176 million, accounting for 6% of Arizona crop cash receipts of $5.2 billion.
- Cotton ginning generated sales of around $9.6 million.
Arizona is among the top cotton producers in the US.
- Arizona ranks among the top three producers of Pima cotton in the United States in terms of production (bales).
- Pinal County is in the top 1% of all U.S. counties, while Graham County is in the top 10% in terms of cotton and cottonseed sales. Yuma and Maricopa counties are in the top quarter in sales, while Pima County is in the top third, nationally.
The total contribution of cotton farming and ginning to Arizona’s economy in 2022 was more than $322 million in sales (output).
- Cotton production directly contributed $185 million in sales to the state economy.
- Arizona’s cotton production supported $59 million in labor income, including multiplier effects.
- Arizona’s cotton production directly and indirectly supported 1,446 jobs, of which 862 jobs were directly in cotton farming, 188 were in cotton ginning, and 396 were in other industries in Arizona.
- Including multiplier effects, the value-added (Gross State Product)2 generated by cotton was nearly $132 million in 2022.