Economy

Iowa's economy is based heavily on agriculture. Not only is farming itself of enormous importance, but many of the state's nonagricultural economic activities, including much of the manufacturing, are related to farming.

In value of production, manufacturing surpasses all other economic activities. Manufacturing, particularly food processing, is also the leading source of personal income for Iowans. Wholesale and retail trade, manufacturing, service industries, and government are the state's chief sources of nonagricultural employment. Though engaging far fewer workers, finance, insurance, real estate, transportation, utilities, and construction contribute substantially to Iowa's economy.

Iowa normally ranks third among the 50 states in value of agricultural production, surpassed only by California and Texas. Some 90 per cent of the state is farmland, which include about 90,000 farms.

Corn and soybeans are the most valuable and widely grown crops. Iowa ranks first in corn production and among the leading states in soybeans. Hay, wheat, and oats are also produced in large amounts. Much of the state's corn output is used to feed livestock.

In total value, hogs are the leading farm product. Roughly a fourth of the nation's hogs are produced in Iowa, more than any other state. In cattle production, Iowa ranks among the top states. Many cattle are brought in from Western states as feeder cattle to be fattened before going to market.

Iowa is also a leading dairy state, particularly milk and egg production. Farms also produce chickens and turkeys, sheep and some horses.

Iowa's manufacturing industries produce a great variety of goods. Most of the factories have been established since the mid-20th century and have greatly helped to diversify the economy.

Particularly important is the processing of foods, especially meats, grain mill products, and dairy goods. The manufacturing of machinery, most notably farm and construction machinery, is also of major significance. Important, too, is the making of household appliances, fabricated metal goods, electrical equipment, chemicals, rubber products, and printed materials. Cedar Rapids, Des Moines, Davenport, Dubuque, and Waterloo are the leading manufacturing centers.

Limestone is Iowa's main source of mining income. Other minerals produced include sand and gravel, clays, cement, gypsum, and peat.

Iowa is served by extensive networks of roads and railways. The road system is aligned mainly north-south and east-west, forming a distinct grid. Three Interstate highways either cross Iowa or traverse much of the state; two serve Des Moines. Railway passenger service is provided at several cities by Amtrak. Iowa's chief airports are in Des Moines, Davenport, and Cedar Rapids.

The Mississippi and Missouri rivers are currently as well as historically significant as a means of transportation. Barges carrying bulk cargo are the chief users of the rivers.