The Economic Importance of Food and Fiber A Spotlight on Greene County, Georgia Prepared for: Greene County Cooperative Extension February, 2007 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Agriculture in Georgia ¾ Georgia's 2005 Farm Gate Value was $10.6 billion. Adding the value of landscape services increased the total agricultural production value to $12.3 billion. ¾ Total food and fiber production and directly related businesses account for a $52.7 billion output impact on Georgia's $614 billion economy. Production Agriculture: 2005 Georgia Total Agricultural Production Value $12.3 Billion Poultry & Eggs 36.7% Landscape services 14.0% Other Income 5.4% Fruits & Nuts 2.2% Forestry & Products 5.7% Ornamental Horticulture 7.3% Vegetables 5.2% Livestock & Aquaculture 10.6% Row & Forage Crops 13.0% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $317 2005 Farm Gate Value by County in Millions of Dollars What We Know about Greene County ¾ 2005 Farm Gate Value in Greene Co. was $57.8 million. Adding $3 million of landscape services increased the total agricultural production value to $60.8 million. ¾ The highest value commodity group was poultry/eggs, representing 31.6% of the total agricultural production value. Greene County 2005 Agricultural Production Value 2005 Agricultural Production Orn Hort 11.3% Fruits-NutsOther Veges 0.6% 0.1% Landscape services 4.9% Poultry-Eggs 31.6% Forestry 15.3% LivestockAquaculture 29.8% Row-Forage crops 6.4% 2005 Top Farm Gate Commodities Container Nursery Horses 0.7% Beef 1.9% 6.3% Hay 6.4% Quail 9.7% Hunting Leases 0.4% Greenhouse 10.9% Dairy 13.5% Total AG Value = $60.8 million Rest of Commodities 1.0% Broilers 33.3% Timber 16.1% Trends in Greene County: Number of Farms & Average Farm Size Number of Farms, Greene County Average Farm Size 1600 400 Greene Co. Georgia 1400 300 A cres 1200 1000 800 600 218 205 200 100 400 255 200 Source: 1945 - 2002 (quinquennial) Censuses of Agriculture R 02 20 97 87 92 19 19 19 78 82 19 19 69 74 19 19 59 64 19 19 54 19 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 49 0 Trends in Greene County: Land in Farms & Farms by Size Acres X 1,000 Land in Farms Greene County Percent of Farms by Size, 2002 50 200 180 160 140 120 100 80 60 40 20 0 Greene Co. Georgia 40 30 52.2 20 10 9 19 2 97 R 20 02 87 19 82 19 78 19 74 19 69 19 64 19 59 19 54 Source: 1945 - 19 50 19 19 19 45 0 1-9 acres 2002 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 acres 500-999 acres 1000+ acres Trends in Greene County Number of Farms by Commodity 1987 1992 1997 2002 180 157 160 140 120 94 100 80 60 40 17 20 16 0 Beef Cows Source: 1987 - Broilers and other Meattype Chickens Sold 2002 (quinquennial) Censuses of Agriculture Milk Cows Hay How Do We Compare ? Georgia, Greene and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $3,000 $2,500 $2,848 $2,000 $2,146 $1,500 $1,471 $1,263 $1,000 $500 $0 $957 $209 $1,107 $227 $554 $162 $263 $214 $282 $442 $266 ia m ee ro ne coc k rgan pe g a r r n e r e n o e o f o n a ut th Gr Mo Oc P Ge e Ha l ali g T O Sources: 2002 Census of Agriculture and 2005 Farm Gate Value Report $67 What We Did ¾ The Center for Agribusiness and Economic Development performed an analysis of the county’s economy, focusing on the role of food and fiber. What We Asked County Economy Modeled 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? Greene County Economy Agriculture OUTPUT Output in $ Millions 60.808 5.609 86.471 145.959 16.751 59.022 48.190 95.432 85.841 Percent 10.1 0.9 14.3 24.2 2.8 9.8 8.0 15.8 14.2 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $604.1 million Greene County Economy Agriculture + Directly Related Businesses OUTPUT Agriculture + Direct Output in $ Millions 85.331 5.609 86.471 121.437 16.751 59.022 48.190 95.432 85.841 Percent 14.1 0.9 14.3 20.1 2.8 9.8 8.0 15.8 14.2 Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $604.1 million An Economic Snapshot of Greene County ¾ How much of Greene County’s total economic output comes from food and fiber production? ¾ AG value alone of $60.8 million consisting of Farm Gate Value and landscape services comprises 10.1% of the county’s economy. ¾ AG plus directly related businesses (ex. logging, etc.) comprise 14.1% of the county’s economy. Food and Fiber Production, Processing and Direct Manufacturing as % of Total Output 0 - 10% 10 - 20% 20 - 40% 40 - 60% 60 - 84% Greene Co. 14.1% 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 Greene County Agriculture IMPACT Direct $ Millions 60.808 0 0 0 0 0 0 0 0 60.808 Indirect $ Millions 0 0.000 0.210 0.210 1.127 3.271 2.555 3.453 2.833 13.659 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Total Impact of Production AG = $103.4 million–12.3% of total economy Greene County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions 85.331 0 0 0 0 0 0 0 0 85.331 Indirect $ Millions 0 0.000 0.254 0.304 1.344 4.359 3.467 4.717 3.664 18.109 Total Impact of AG + Directly Related = $103.4 million—17.1% of total economy Greene County Production Agriculture + Directly Related Industries Employment IMPACT Direct 1,024 0 0 0 0 0 0 0 0 Indirect 0 0 3 1 17 52 22 87 4 Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Impact of AG + Directly Related Employment = 1,209 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $85.3 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $4.4 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. Greene County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $103.4 million. ¾ The total output is $604.1 million. ¾ Thus, food and fiber (directly and indirectly) account for 17.1% of the total output. Food and Fiber Production, Processing and Direct Manufacturing Impact as % of Total Output 0 - 10% 10 - 20% 20 - 40% 40 - 60% 60 - 100% Greene Co. 17.1% 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 #0703A February, 2007