Katherine Zehdner
Carolina Journal
As National Agriculture Month spotlights the farming industry, experts are calling for a sharper focus on disaster relief, farmland preservation amid urban sprawl, and trade policies, as North Carolina shapes its agricultural agenda for 2025.
Agriculture is the No. 1 industry in North Carolina, with a $111.1 billion annual contribution to the economy, roughly one-sixth of the state’s overall income. North Carolina is the No. 1 producer of both sweet potatoes and tobacco nationwide. Other primary exports of North Carolina include pork, tobacco, soybeans, and Christmas trees. Many North Carolina Christmas trees have graced the White House over the years; 2024 was the second consecutive year that a North Carolina Christmas tree has been chosen for the White House.
Trade and Tariffs
“Agriculture is a vital part of North Carolina’s economy,” Dr. Jeffrey Dorfman, Hugh C. Kiger distinguished professor of agricultural and resource economics at North Carolina State University, told the Carolina Journal. “Adding up jobs in direct agricultural production, the making and selling of agricultural inputs, food processing, the restaurant industry, and food retailing, about one out of every six jobs in the state is tied to agriculture. Further, those food processing and agricultural input-providing jobs are an important source of employment and income in the state’s rural areas, and those jobs wouldn’t be there if agricultural production wasn’t occurring nearby. A strong agricultural economy means a healthy rural economy for North Carolina.”
Scott Farms, located just outside of Wilson, is one of the largest sweet potato producers in the state. It exports not only across the nation but also to the United Kingdom and Europe. According to the Office of the US Trade Representative, in 2022, North Carolina was the No. 1 state for exporting tobacco ($533 million) and broiler meat ($584 million) and the No. 3 state for pork exports ($781 million).
“I think we’ve got to acknowledge that President Trump’s trade activity as of late definitely creates some volatility in our markets and our capability to sell around the world,” Ray Starling, general counsel of the North Carolina Chamber and president of the North Carolina Chamber Legal Institute, told the Carolina Journal. “We have an excess of just about everything in the United States, so we are very export dependent, very export sensitive in terms of our pricing. I think farmers are willing to be patient with President Trump on what he’s trying to do, the bigger long-term goals in terms of creating fair and balanced trade. That said, patience does not pay the bank note off at the end of the season, and so there’s still an economic piece there that they’re even more sensitive to, and understandably so.”
According to the Office of the US Trade Representative, North Carolina ranks as the 14th largest agricultural exporting state in the United States, with $4.5 billion worth of domestic agricultural products shipped abroad in 2022. Nonetheless, the numerous natural disasters that have devastated the state in recent years have significantly hurt the state’s largest industry.
“The natural disasters that have impacted North Carolina over the past year have hurt our agriculture and our tourism industry,” continued Dorfman. “The damage done will cause a drag on the North Carolina economy for years as state and local government and private individuals and businesses are all forced to invest money into replacing lost structures. This will limit the money that can be spent on new productive capacity, and we should expect somewhat slower economic growth for several years as people slowly recover.”
Disaster Relief for WNC Farmers
Farmers across the state are reeling from a disastrous 2024 season, which resulted in nearly $5 billion in agricultural losses, Steve Troxler, Commissioner of the North Carolina Department of Agriculture and Consumer Services (NCDA&CS), told the Carolina Journal.
Troxler said, throughout the year, they faced severe challenges, including drought, low farm gate prices, heavy rains from Tropical Storm Debby and another unnamed tropical storm, and the impact of Hurricane Helene, which swept through western North Carolina. Farmers need assistance to secure the opportunity to grow in the coming season. Many risk going out of business without a lifeline — an outcome detrimental to the agricultural community and the state’s economy.
“As a farmer in far western North Carolina, I have a unique understanding of the challenges our farmers face as they work to recover from Hurricane Helene,” state Rep. Karl Gillespie, R-Macon, told the Carolina Journal. He emphasized that the House remains dedicated to delivering “meaningful support” to those affected.
HB 130, the Agriculture Crops Disaster Relief bill, is progressing through the committee process and aims to provide $475 million in financial assistance to farmers who can verify their losses. Meanwhile, the House has passed HB 47, the Disaster Recovery Act of 2025 Part I, which currently allocates over $192 million for the Hurricane Helene Agricultural Crop Loss Program, debris removal, and other recovery efforts. These amounts may change as HB 47 continues through the legislative process.
“Additional conversations this session may focus in on things like cropland restoration, streambank stabilization, farm road repairs, technical assistance, etc.,” concluded Gillespie. “Beyond these measures, we remain dedicated to listening to those directly affected, collaborating with state agencies and various commodity groups, and working alongside our federal partners to ensure we meet the agricultural needs of our state,” concluded Gillespie.
Urban Sprawl vs. Farmland Preservation
With North Carolina’s growing popularity as a destination for relocation and business development, preserving farmland has become increasingly urgent. According to the American Farmland Trust, the state is projected to rank second in the nation for farmland loss by 2040, with an estimated decline of 1.2 to 1.6 million acres.
“The loss of farmland across the state is a major challenge to agriculture, especially as we anticipate a growing global population,” said Troxler. “We will need to lean in heavily on ag research to help farmers produce more with fewer resources.”
Starling pointed out that land availability and land pressures are the most pressing issues concerning farmers today. As the state continues to grow, there is a need for continued housing development, juxtaposed with the fact that North Carolina is the No. 2 state in the nation for the highest rate of threatened farmland.
“The tension is we have a gigantic housing crisis, and so there’s all this pressure to build a lot of houses, which we need to do,” said Rep. Zenger. R-Forsyth. “But at the same time, our largest industry in North Carolina is agriculture. We’ve got to have houses, but we can’t have unlimited urban sprawl because it eats up farmland and drives up the cost of land, making it harder for farmers. So, what we need to do, and I’m working on with folks on policy for this, is to find a way to thread that needle. How do you meet the housing demands and protect farmland simultaneously?”
Starling explained that landowners can generate significantly more revenue by selling their land to a developer rather than selling it to a farmer or leasing it to a farmer over time. This economic reality creates considerable pressure, as the financial incentives are clear and unlikely to change. However, it raises the question of whether there are land use policies and preferences that the state or local governments could adopt to help alleviate some of this pressure.
“With people now two and three generations removed from the farm, there remains a disconnect around agriculture being the source of our food supply,” said Troxler. “Very simply, we don’t eat without farmers because all food starts on a farm. So, I wish people had a better understanding that we all have a vested interest in the success of farmers and agriculture.”
Comments