The Economic Importance of Food and Fiber Prepared for Elbert County Cooperative Extension

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The Economic Importance
of Food and Fiber
A Spotlight on Elbert County, Georgia
Prepared for
Elbert County Cooperative Extension
October, 2008
by:
The Center for Agribusiness
and Economic Development
College of Agricultural
and Environmental Sciences
The University of Georgia
Total Population
Elbert County
20,582
20,966
20,525
20,511
18,949
18,758
17,262
17,835
18,585
19,618
18,485
2010 Trend CAED
2010 OPB Proj.
2007 Est.
2000
1990
1980
1970
1960
1950
1940
1930
0
5,000
10,000
15,000
20,000
Primary data sources: U.S. Census Bureau, decennial censuses & estimate; OPB (State Office of
Planning and Budget) CAED (Center for Agribusiness & Economic Development).
25,000
Population Change: 2000-2007
LOSS
0 – 7.2%
7.2 – 16.6%
16.6 – 39.0%
39.0 – 61.5%
Avg. GA
County = 9.9%
GA = 16.6%
US = 7.2%
Elbert Co.
.01%
Primary data source: U.S. Census Bureau (3/08)
Percent of Land in Cropland & Forestland: 2002
23 – 40%
40 – 55%
55 – 70%
70 – 85%
85% or more
GA Total = 78.5%
GA Avg. Co. = 77.3%
Metro Avg. Co. = 70.7%
Nonmetro Avg. Co. = 82.6%
Elbert Co.
81.4%
Primary data sources:
U.S. Census of Agriculture, 2002
Forest Statistics for Georgia, 1997
Components of 2007 Property Tax Gross Digest
Elbert County
Residential
37.7%
Ag-PreferentialEnviron-Conserv
28.9%
Timber *
0.4%
Heavy
Equipment
0.001%
Mobile Home
1.2%
Motor Vehicle
7.7%
Primary data source:
GA Dept. of Revenue
Public Utility
3.9%
Industrial
6.4%
Commercial
13.8%
40% Assessment Value of Property
Gross Digest = $600,092,407
COUNTY Homestead & Property Exemptions = $93,576,444
Net M&O Digest = $506,515,963
Value of exempt property = $63,680,308
* Timber taxed at 100% based on previous year sales
County Property Tax Digest Comparisons: 2007
County
% Resi- % Agri- % Comdential cultural mercial
% Industrial
% Mo%
%
% UtilMotor bile
Timity
Veh Home ber
ELBERT
37.7
28.9
13.8
6.4
3.9
7.7
1.2
HART
57.1
20.3
5.9
7.5
2.8
5.5
0.8 0.05
LINCOLN
59.7
24.6
4.8
0.3
2.1
6.3
1.4
MADISON
45.9
32.6
4.8
2.0
5.4
7.9
1.3 0.05
OGLETHORPE 38.7
45.7
4.3
0.6
2.3
6.6
0.9
0.9
WILKES
31.0
38.6
12.9
2.6
3.3
6.6
1.6
3.3
Avg. GA Co.
42.4
23.8
12.7
7.0
5.0
7.2
1.1
0.9
Primary data source: GA Dept. of Revenue
0.4
0.8
Revenue : Expenditure Ratios
$ of Revenue for Each $ of Expenditure
$1.92
$2.86
Farm/Forest
$1.01
$1.18
$2.70
$3.19
$1.17
Commercial
$1.93
$1.25
$3.45
Residential
$0.00
Cherokee
Jones
Carroll
Oconee
US Avg
$0.64
$0.87
$0.83
$0.90
$0.87
$1.00
$2.00
$3.00
Dorfman, Jeffery, The Economics of Growth, Sprawl and Land Use Decisions (presentation), Dept. of Ag &
Applied Economics, UGA, January 2004.
$4.00
Agriculture in Georgia
¾ Georgia's 2007 Farm Gate Value was
$11.6 billion. Adding the value of
landscape services increased the total
agricultural production value to $13.6
billion.
¾ Total food and fiber production and
directly related businesses account for
a $59 billion output impact on
Georgia's $735 billion economy.
Production Agriculture: 2007
Georgia Total
Agricultural
Production Value
$13.6 Billion
Landscape
services
Fruits & Nuts
15.3%
1.8%
Poultry &
Eggs
39.8%
Forestry &
Products
4.4%
Other Income
4.5%
Ornamental
Horticulture
5.6%
Livestock &
Aquaculture
Vegetables
9.8%
6.6%
Row &
Forage Crops
12.3%
$0 - $20
$20 - $45
$45 - $80
$80 - $200
$200 - $390
2007 Farm Gate
Value by County
in Millions of Dollars
What We Know
about Elbert County
¾ 2007 Farm Gate Value in Elbert Co.
was $104 million. Adding $387
thousand of landscape services
increased the total agricultural
production value to $104.4 million.
¾ The highest value commodity group
was poultry/eggs, representing
85.7% of the total agricultural
production value.
Elbert County
2007 Agricultural Production Value
2007 Top Farm Gate Commodities
2007 Agricultural Production
Veges-FruitsOrn Hort
Nuts
Forestry
Other
3.3%
0.04%
2.2%
0.9%
LivestockAquaculture
4.8%
Row-Forage
crops
2.8%
Deer hunting
Hay Cotton
1.2% 0.8% Dairy
leases
0.7%
0.3%
Timber
Rest of
2.2%
Commodities
2.1%
Horses
1.7%
Landscape
services
0.4%
Beef
2.3%
Greenhouse
2.7%
Layers
14.0%
Poultry-Eggs
85.7%
Total AG Value = $104.4 million
Broilers
71.9%
Trends in Elbert County:
Number of Farms & Average Farm Size
Number of Farms, Elbert County
Average Farm Size
300
2500
Elbert Co.
Georgia
2000
218
200
A cres
1500
1000
438
500
0
145
100
R
02
20
97
92
19
19
87
19
82
19
78
19
74
19
64
69
19
19
54
59
19
19
49
45
19
Source: 1945-2002 (quinquennial) Censuses of Agriculture
19
02
20
R
92
97
19
19
87
19
82
19
78
19
74
19
69
19
64
19
59
19
54
19
49
19
19
45
0
Trends in Elbert County:
Land in Farms & Farms by Size
200
180
160
140
120
100
80
60
40
20
0
Percent of Farms by Size, 2002
Elbert Co.
Georgia
225
200
175
63.4
19
45
19
50
19
54
19
59
19
64
19
69
19
74
19
78
19
82
19
87
19
9
19 2
97
R
20
02
Acres X 1,000
Land in Farms
Elbert County
150
125
100
75
50
25
0
1-9
acres
Source: 1945-2002 (quinquennial) Censuses of Agriculture
10-49
acres
50-179
acres
180-499 500-999
acres
acres
1000+
acres
Trends in Elbert County
Number of Farms by Commodity
1987
1992
1997
2002
300
267
250
186
200
150
100
50
10
17
9
4
0
Beef Cows
Milk Cows
Broilers
Wheat
Source: 1987-2002 (quinquennial) Censuses of Agriculture
Cotton
Hay
How Do We Compare ?
Georgia, Elbert and Surrounding Counties
Farm Gate Value
$ Per Farm (thousands)
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
$4,269
$1,076
$235
ia
g
r
o
Ge
rt
e
Elb
$ Per Acre
$3,767
$3,713
$1,640
$492
$238
$496
$74
rt
Ha
$377
pe
on
r
oln
s
i
c
o
d
th
Lin
e
Ma
l
Og
Sources: 2002 Census of Agriculture and 2007 Farm Gate Value Report
$576
What We Did
County Economy Modeled
¾ The Center for Agribusiness and Economic
Development performed an analysis of the
county’s economy, focusing on the role of
food and fiber.
¾ How much of the county’s total current
economic output comes from food and fiber
production and directly related processing?
(A Snapshot of the Economy)
¾ What is the total (direct and indirect) Impact
of food and fiber production and directly
related industries?
Elbert County Economy
Agriculture OUTPUT
Output in $ Millions
104.414
50.892
38.200
407.178
31.818
128.247
35.598
101.284
140.316
Percent
10.1
4.9
3.7
39.2
3.1
12.4
3.4
9.8
13.5
Agriculture
Mining
Construction
Manufacturing
Trans-Utilities-Info
Trade
Finance-Ins-RE
Services
Government
Total County Economic Output = $1.038 Billion
Elbert County Economy
Agriculture + Directly Related Businesses OUTPUT
Output in $ Millions
Percent
214.469
20.7
Agriculture + Direct
50.892
4.9
Mining
38.200
3.7
Construction
297.123
28.6
Manufacturing
31.818
3.1
Trans-Utilities-Info
128.247
12.4
Trade
35.598
3.4
Finance-Ins-Real Est
101.284
9.8
Services
140.316
13.5
Government
Total County Economic Output = $1.038 Billion
Elbert County Employment
Total Jobs = 9,246
Mining
228
2.5%
Construction
394
4.3%
Manufacturing
1,808
19.6%
Trans-UtilitiesInfo
293
3.2%
AG + Directly
Related
1,137
12.3%
State & Federal
Government
762
8.2%
Public
Education
962
10.4%
Trade
1,646
17.8%
Other Services
1,053
11.4%
Professional
Services
706
7.6%
Finance-InsReal Est
258
2.8%
Primary data source: Center for Agribusiness & Economic Development, UGA
An Economic Snapshot
of Elbert County
¾ How much of Elbert County’s total
economic output comes from food and
fiber production?
¾ AG value alone of $104.4 million consisting
of Farm Gate Value and landscape services
comprises 10.1% of the county’s economy.
¾ AG plus directly related businesses (ex.
poultry processing, logging, etc.) comprise
20.7% of the county’s economy.
Food and Fiber Production and Directly Related
Manufacturing as % of Total Output
0 - 10%
10 - 20%
20 - 30%
30 - 50%
50 – 77%
Elbert Co.
20.7%
What is the Impact?
¾What is the total (direct and indirect)
impact of food and fiber production and
directly related industries?
¾This scenario illustrates how other
industries are affected by the presence
of food and fiber in the county. The
indirect impacts measure output created
due to food and fiber production and
processing in the county.
What Impact Means:
A Brief Explanation
¾ The impact numbers capture the
ripple effects that food and fiber
create in the county’s economy.
Many other sectors rely in part on the
existence of food and fiber for sales.
Labor
Seed
Utilities
Elbert County
Agriculture IMPACT
Direct $ Millions
Indirect $ Millions
104.414
0
Agriculture
0
.199
Mining
0
.156
Construction
0
1.216
Manufacturing
0
2.321
Trans-Utilities-Info
0
7.961
Trade
0
1.534
Finance-Ins-Real Est
0
3.820
Services
0
3.285
Government
104.414
20.492
Total
Total Impact of Production AG = $124.9 million
12.0% of total economy
Elbert County
Production Agriculture + Directly Related Businesses IMPACT
Direct $ Millions
Indirect $ Millions
214.469
0
Mining
0
.323
Construction
0
.424
Manufacturing
0
1.805
Trans-Utilities-Info
0
4.253
Trade
0
15.291
Finance-Ins-Real Est
0
3.622
Services
0
9.832
Government
0
5.986
214.469
41.536
Agriculture + Direct
Total
Total Impact of AG + Directly Related = $256 million
24.7% of total economy
Elbert County
Production Agriculture + Directly Related Industries
Employment IMPACT
Direct
Indirect
1,137
0
Agriculture + Direct
0
1
Mining
0
5
Construction
0
8
Manufacturing
0
38
Trans-Utilities-Info
0
182
Trade
0
25
Finance-Ins-Real Est
0
151
Services
0
10
Government
Total Impact of AG + Directly Related Employment = 1,558 Jobs
16.8% of total employment
What These Numbers Mean:
A Brief Explanation
¾ Direct impact is $214.5 million. This
includes food and fiber production,
processing and directly related
manufacturing.
¾ Indirect impact from the Trade sector is
$15.3 million. This captures the effects
of farmers (direct source) buying
supplies (seed, fertilizer, work boots)
from local stores. These stores must
increase their output to meet farmer
demand.
What These Numbers Mean:
A Brief Explanation (continued)
¾ As local stores increase their output, they
may demand more stock from local
wholesalers (also in the Trade sector).
Local wholesalers demand more from
local manufacturers, thus increasing
activity in the Manufacturing sector.
¾ Local stores also hire employees to assist
farmers. They take home wages and buy
groceries at the local store which
increases demand there.
Elbert County Food and Fiber
Impact Conclusions
¾ The total impact of food and fiber
production, processing and direct
manufacturing is $256 million.
¾ The total county output is $1.038
billion.
¾ Thus, food and fiber (directly and
indirectly) account for 24.7% of the
total county output.
Food and Fiber Production and Directly Related
Manufacturing IMPACT as % of Total Output
0 - 10%
10 - 25%
25 - 40%
40 - 60%
60 - 84%
Elbert Co.
24.7%
Contact Information
Prepared by:
Sue Boatright and Archie Flanders
Center for Agribusiness & Economic Development
“Adding Value to Georgia's Agricultural Economy
Through Research and Extension“
To learn more about your county, go to:
http://www.caed.uga.edu/
...click on “Georgia Statistics System”
Special County Area Report
#08-28A
October, 2008
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