A news service for the people of Michigan from the Mackinac Center for Public Policy

Michigan has a diversified economic base and the relationships between one industry and the others can get complex. Perhaps the most commonly reiterated myth about the state economy is that agriculture is the state’s second-largest industry.

That myth was recently repeated by Michigan Radio, which did a series that looked at the people providing migrant labor.

While agriculture is important for the people who depend on it for their livelihoods, it's a relatively small part of the state economy. The state gross domestic product generated directly by farms, fishing and forestry accounts for just 1 percent of the state's total production.

The "second largest" claim comes from a report by Michigan State University professors that counts the direct, indirect, and ancillary relationship between agriculture industries. This expansive definition means that even waiters are considered agricultural employees since they work with food.

But because of this expansive definition, it is impossible to compare these findings to other industries.

All industries are connected and some are more connected than others and it's difficult to imagine Michigan without farming. This does not mean, however, that its contributions to the state's economic environment are the second largest.

Meet James Hohman, Assistant Director of Fiscal Policy at the Mackinac Center. James discusses his latest project, an analysis of Proposal 1, the proposal on personal property tax reform that will appear on the August 5th ballot. Read more about Proposal 1 here: http://www.mackinac.org/20246


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