Puerto Rico Agri Growth Soars to $703M Amidst Farm Consolidation

The release of the 2022 Census of Agriculture data for Puerto Rico by the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) marks a significant moment for the island’s agricultural sector. The data, collected with the assistance of the Puerto Rico Department of Agriculture and the University of Puerto Rico Extension Service, reveals a robust growth trajectory in the island’s agricultural production, which reached a total value of $703 million in 2022. This figure represents a substantial 45% increase from 2018, showcasing a resilient and expanding agricultural industry despite broader economic challenges.

The regional breakdown highlights that the Arecibo and Ponce regions are the powerhouses of Puerto Rican agriculture, together accounting for over 40% of the total production value. At the municipio level, Santa Isabel, Arecibo, and Salinas emerge as the top performers with sales figures of $55.5 million, $54.6 million, and $45.9 million, respectively. These areas are likely to attract increased attention from investors and policymakers aiming to capitalize on their proven agricultural productivity.

In terms of commodities, milk, poultry and poultry products, and field crops dominate the landscape, collectively accounting for over half of the total agricultural sales. Milk alone generated $173 million, followed by poultry and poultry products at $111.2 million, and field crops at $74 million. The prominence of these commodities underscores their critical role in the island’s agricultural economy and may guide future investments and technological advancements in these sectors.

However, the census also reveals some concerning trends that mirror those seen in mainland U.S. agriculture. The average farm size has increased from 59.3 cuerdas in 2018 to 65.0 cuerdas in 2022, while the number of farms has declined by 628, bringing the total down to 7,602. This consolidation trend indicates that while the overall agricultural output is growing, smaller farms are disappearing, potentially leading to reduced diversity in farm ownership and increased barriers for new, small-scale farmers entering the industry.

Interestingly, despite the decline in the number of farms, the total amount of farmland has increased by 6,706 cuerdas, now comprising 21.9% of all land in Puerto Rico. This expansion of farmland could be a positive indicator for future agricultural productivity and sustainability, provided that the land is managed effectively.

For investors, the data offers a wealth of insights. The significant growth in agricultural production value signals a vibrant sector with ample opportunities for investment, particularly in the top-performing regions and commodities. The detailed data on tropical commodities and specialized agricultural practices unique to Puerto Rico further enriches the investment landscape, allowing for targeted strategies that align with the island’s distinctive agricultural profile.

Moreover, the comprehensive nature of the census, which includes data on education levels, household composition, and retirement status of farm operators, provides a nuanced understanding of the human capital driving the sector. This information can be invaluable for developing programs and policies that support the agricultural workforce, ensuring that the sector remains sustainable and competitive.

In summary, the 2022 Census of Agriculture data for Puerto Rico paints a picture of a dynamic and growing agricultural sector with significant potential for future development. The insights gained from this data will be crucial for informing policy decisions, guiding investments, and supporting the island’s agricultural communities in the years to come.

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