Iowa is a state located in the Midwestern United States, an area normally known as the "American Heartland." It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state of Iowa at the time of European exploration. Iowa was a part of the French colony of New France. After the Louisiana Purchase, settlers laid the foundation for an economy based on agriculture in the heart of the Corn Belt. The state of Iowa is usually known as the "Food Capital of the World." Nevertheless, Iowa's culture, landscape and economy are diverse.
Iowa's agricultural economy transitioned during the latter half of the 20th century to a more diversified economy of advanced manufacturing, processing, financial services, biotechnology, and green energy production. Iowa State has a population of just over 3 million in 2010, and its largest and capital city is Des Moines. Iowa State has been listed as one of the states that is safest to live in.
Though the state of Iowa is normally viewed as a farming state, in reality agriculture is a small portion of a diversified economy, with biotechnology, manufacturing, finance and insurance services, and government services contributing substantially to the economy of Iowa. This economic diversity has helped Iowa State weather the late 2000s recession better than most states, with unemployment significantly lower than the rest of the nation.
During 2005, the economy of Iowa State had a GDP of $124 billion. The gross state product for that very same year was $113.5 billion. For 2006, its capita income was US $23,340.
Agriculture has always been indirectly and directly a key part of the economy of the state. The direct sale and production of raw agricultural products however is only around 3.5% of Iowa's gross state product. The indirect role of agriculture within Iowa's economy can be measured in multiple ways, but its total effect, including agriculture-affiliated business, has been measured at 24.3% in terms of total output and 16.4% when it comes to value added. This is less than the economic impact within the state of Iowa of non-farm manufacturing, which accounts for 22.4% of total value added and 26.5% of total output. Iowa's key agricultural outputs are corn, hogs, oats, soybeans, cattle, eggs, and dairy products. Iowa State is the country's biggest producer of ethanol and corn and some years is the largest grower of soybeans as well. During the year 2008, the 92,600 farms within Iowa produced 17% of the country's soybeans, 19% of the corn, 14% of the eggs and 30% of the hogs.
Major agricultural product processors of Iowa consist of Archer Daniels Midland, Ajinomoto, Cargill, Inc., Diamond V Mills, Garst Seed Company, Heartland Pork Enterprises, Hy-Vee, Monsanto Company, Pioneer Hi-Bred International, and Quaker Oats.