Since Bayog is mainly agricultural, over 20 rice and corn mills can be found in the municipality. In addition, their products are also traded with neighbouring cities such as Zamboanga City and Pagadian City, which is why Bayog has also been considered as th "Rice Granary Of Region IX". The people of the town rely mainly on crop raising and animal husbandry. The town is situated in a wide plain fed by the Siboguey River and its tributaries. Two dams can be found in the municipality, namely, the Sibouguey Irrigation Dam and the Dipili River Irrigation Dam, which are responsible for irrigating some 100 square kilometres of ricefields. This dams were erected during the late 1970s with support from the Philippine-Australian Development Project. The dams are now under the management of the National Irrigation Administration through their office in the town center.