The latest economic report for North Carolina’s agriculture industry, released in May 2024, stated an agribusiness impact of $111 billion in economic activity, according to WNC Ag Programs Assistant Commissioner Kaleb Rathbone.

With more than 90 different commodities produced, the state’s agriculture industry is diverse and representative of a variety of climates. In WNC, the topography prohibits large crop and livestock operations, and features an array of high-value fruits, vegetables, and small livestock farms. Timber and trout farming are also valuable agricultural commodities in the region.

As an industry, agriculture is heavily reliant on and impacted by factors outside of the industry’s control. Weather affects production levels and the global commodity market affects demand, and with positive results in the last year, Rathbone attributes the growing industry to the state’s foresight and planning across several decades.

“The growth that we’re seeing is a direct reflection of those investments made by the state for several generations,” Rathbone said. “One of those is our network of research stations, and others include our overall business climate and the development of new domestic and international markets for our products. Ag manufacturing is also something our commissioner has been focused on, and we see it as a potential to be a great benefit to the industry.”

The recruitment of agricultural processing and manufacturing facilities can help preserve fresh produce as well as create new markets for NC’s products. The state’s General Assembly voted to provide $20 million in funding across two years to recruit these facilities, and this program is in its early stages. While still too early to determine specific operations and locations, Rathbone predicts the program will “pay great dividends” into the future.

In WNC specifically, trends Rathbone is noticing include increasing interest in greenhouse operations, which are becoming incorporated into a variety of local farms. GPS and drone technologies are becoming more widely incorporated in creative uses including pesticide applications and evaluating conditions across steep terrain. Though these practices may create some easier production methods, the largest challenge for farmers continues to be the availability and costs of labor. 

“While these technologies create ways to reduce the labor burden, the reality is the crops that are grown here are typically very labor-intensive,” Rathbone said. “There’s not a magic solution for harvesting in today’s market.”

Though the state’s H2A program exists to allow an international workforce to seasonally relocate while working on NC farms, those associated costs have increased in the last several years. Labor costs put pressure on farmers to increase product prices. While keeping the average consumer and the product’s market value in mind, farmers often work within small profit margins, and increasing production costs are not being offset by increases in revenue.

“This does put stress on these individual operations,” Rathbone said. “These are thousands of family-run and family-owned small businesses that depend on their income to put food on their tables and put their kids through school. When we see those tighter margins, it certainly creates a challenge.”

In addition to state and federal programs providing grants, infrastructure improvement, and risk management programs to support the industry, farmers in this region are increasingly creative in leveraging market opportunities which allow them to earn a premium for their product in hopes of offsetting some of the tightening margins. Efficiency in multiple stages and processes has become imperative, and additional revenue streams like direct-to-consumer sales and agritourism are becoming more popular.

“Agriculture and tourism are not completely separate, especially in Western North Carolina,” Rathbone said. “The local foods movement is particularly strong here, providing farmers an opportunity to provide their products while sharing their story. The tourism side benefits because farms help maintain the region’s culture and appeal of the open spaces. So many consumers are separated by multiple generations from direct relationships with farmers, and there’s a natural tendency for people to lean toward that connection.”