When Colorado State University professors Greg Perry and James Pritchett set out to create the first-ever Agribusiness Friendliness Index, they didn't know how each of the nation's 50 states would eventually shake out on the list. However, in reviewing the final product, their first-ever ranking has two of our nation's top three dairy states ranked second from the bottom and dead last.

At number 49 on the Agribusiness Friendliness Index is the nation's third-largest dairy state, New York. The only state ranking lower was the nation's largest milk producer, California. Both states received a letter grade of F for working with agriculture. The only other top 10 dairy state to rank that low was New Mexico, coming in at 46 on the list.

In creating the ranking, the Colorado State University ag economists set out to mirror the popular State Business Tax Climate Index. In doing so, Perry and Pritchett included 38 variables representing regulatory and tax policy, government efficiency, impact of key government services and the overall business climate in each state.

"The Agribusiness Friendliness Index illustrates the different ways government influences the economic climate of agriculture and its allied businesses," said Perry.

Pritchett added, "Businesses are acutely aware of the role that state government plays in their success - a business friendly environment will encourage these enterprises to locate or expand operations while unfriendly policies shrink business and may even cause relocation."

How did other top 10 dairy states fare? The highest ranked was Wisconsin at No. 16. It was closely followed by Washington, Texas, Idaho, Minnesota, Michigan and Pennsylvania - each falling between No. 18 and No. 26, respectively.

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