Earlier this month, the Shapiro administration announced a smart investment in Lancaster County’s agricultural sector — a $1.5 million loan by the Pennsylvania Industrial Development Authority to Hoober Inc., an operated farm machinery dealer, to help it construct a 13,920-square-foot facility in Lancaster County.
The 15-year loan at a 4.25% reset interest rate to Hoober Inc. will be used to help construct a headquarters that will house the company’s technical and administrative staff in Leacock Township. The total cost of the project is $3 million. The company has committed to creating 10 new, full-time jobs and retaining 90 existing jobs within three years.
Take that in: 100 full-time, family-sustaining incomes in Lancaster County.
But the Pennsylvania Industrial Development Authority’s investment is an even bigger story when you realize it’s a sign of the importance of Lancaster County’s agricultural sector to its economic success and the commonwealth’s.
Lancaster County’s diverse agricultural sector was the biggest contributor to the county’s 1.4% increase in its gross domestic product in 2022, according to the U.S. Bureau of Economic Analysis, as reported in LNP | LancasterOnline. The bureau also found that Lancaster County’s agriculture sector, that same year, had the largest GDP in the state, with nearly 27% of the state’s $5.6 billion agriculture GDP. In addition, agriculture output made up for about 4% of Lancaster County’s GDP at $1.5 billion (not adjusted for inflation).
Lancaster County’s verdant countryside doesn’t just produce rich harvests, but also draws tourists — a record 9.92 million of them in 2023.
Citing a recent report from Tourism Economics, LNP | LancasterOnline reported that those visitors spent $2.58 billion to eat, shop, play and stay here. Its farmland and culture are among the chief reasons why Lancaster County attracts so many visitors. Agritourism benefits many other sectors, including hotels, restaurants, theme parks and local small businesses.
And there’s much more room for economic growth in the agriculture sector, which smart investments by the Shapiro administration are making possible.
Lancaster County farms are booming, thanks to our farmers’ innovations — from diversifying their sources of income and exploring new markets to developing new forms of customer engagement and fostering agricultural tourism. But to succeed in forging these new paths in agribusiness, our farmers need our support to build the necessary infrastructure.
The Shapiro administration has taken up the gauntlet by making the agriculture sector a key pillar of its economic development strategy.
A cornerstone of the Shapiro administration’s approach to supporting the agriculture industry is the $13.8 million Pennsylvania Farm Bill, which has contributed $120 million to the industry since 2019. Farm bill programs build and maintain the industry’s labor force, invest in food processing infrastructure and remove barriers to entering the industry.
The administration also recently announced that it is protecting farmland in 19 counties, including Lancaster, from future residential or commercial development by purchasing development rights. These farms, approved for conservation easement purchases, will ensure that Pennsylvania farmers have the security needed to grow and thrive.
A particularly exciting aspect of the governor’s economic strategy is the just passed 2024-2025 state budget’s $10 million Agriculture Innovation Program, which will help the agriculture sector fully capitalize on its assets.
This program will aim to develop innovative solutions to complex agricultural and environmental issues. It will enable the Pennsylvania Department of Agriculture to offer grants to farms and other agriculture businesses so they can implement new agriculture technologies, conservation practices and renewable energy innovations. All of this will increase farmers’ ability to generate profits, enrich soil and water resources, and produce energy on their farms.
These wise strategic investments will help ensure that Pennsylvania’s $132.5 billion agriculture industry remains a national leader now and in the future.
By providing the necessary resources to help ensure our agriculture sector is resilient, diverse and sustainable, the Pennsylvania Industrial Development Authority and other programs will help Lancaster County’s economy reap a rich harvest of full-time jobs, fully funded schools, thriving farms and small businesses, and more.
With the Shapiro administration’s strategic investments in our agriculture industry, the future is looking bright for Lancaster County.
State Rep. Ismail Smith-Wade-El, a Democrat, represents the 49th House District, which comprises part of the city of Lancaster, Lancaster Township and Millersville Borough. X (formerly Twitter): @RepIzzy.