This paper uses a regional adjustment model to compare employment and population change in Denmark from 1997 to 2006. The classical Boarnet model is modified by explicitly addressing employment in the agro-food, manufacturing, and services sectors, allowing an investigation into the role of the agro-industry in regional development. We find that employment growth in the agro-food sector has a positive impact on population growth, while employment growth in the agro-food sector has no significant impact on the employment growth in manufacturing and service sectors. We also find that agro-food sector employment is not particularly associated with rural areas. Agro-food employment has experienced higher growth in urban areas (with higher density) than in rural areas. Furthermore, there is no impact of easier access to the agricultural sector on agro-food employment.