The Economic Importance of Food and Fiber A Spotlight on Putnam County, Georgia Prepared for Putnam County Cooperative Extension January, 2009 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Putnam County 2010 Trend CAED 21,002 21,505 20,251 18,812 2010 OPB Proj. 2007 Est. 2000 14,137 1990 10,295 8,394 7,798 7,731 8,514 8,367 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% Putnam Co. 7.6% 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% Putnam Co. 85.6% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2007 Property Tax Gross Digest Putnam County Residential 67.5% Heavy Equipment 0.03% Ag-PreferentialEnviron-Conserv 9.1% Timber * 0.3% Mobile Home 0.4% Motor Vehicle Industrial Commercial 40% Assessment Value of Property 8.6% 3.8% 2.9% Gross Digest = $1,651,202,379 Public Utility Homestead & Property Exemptions = $257,270,496 7.5% Primary data source: GA Dept. of Revenue Net M&O Digest = $1,393,931,883 Value of exempt property = $42,103,224 * 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 PUTNAM 64.2 9.9 9.7 3.2 7.5 4.0 0.4 0.3 BALDWIN 55.9 6.7 17.0 5.8 5.9 7.6 1.3 0.2 GREENE 66.1 17.0 8.8 2.7 1.6 2.8 0.3 0.3 HANCOCK 40.8 32.1 4.0 0.6 11.9 3.7 2.9 3.6 JASPER 39.4 42.1 3.3 3.8 3.7 JONES 55.4 13.3 9.4 2.1 5.2 10.5 0.8 0.5 MORGAN 31.5 43.6 11.6 5.6 1.6 4.9 0.5 0.2 Avg. GA Co. 41.9 22.5 12.8 7.6 5.0 7.4 1.1 0.9 Primary data source: GA Dept. of Revenue 5.6 0.5 0.6 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 Fruits & Nuts services 15.3% 1.8% Poultry & Eggs 39.8% Forestry & Products 4.4% Other Income 4.5% Livestock & Ornamental Aquaculture Horticulture 9.8% Vegetables 5.6% 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 Putnam County ¾ 2007 Farm Gate Value in Putnam Co. was $84.6 million. Adding $3.3 million of landscape services increased the total agricultural production value to $87.8 million. ¾ The highest value commodity group was poultry, representing 46.2% of the total agricultural production value. Putnam County 2007 Agricultural Production Value 2007 Agricultural Production Orn Hort 0.6% Fruits-NutsOther Veges 5.3% 0.3% Forestry 6.5% LivestockAquaculture 34.9% Landscape services 3.7% Poultry-Eggs 46.2% Row-Forage crops 2.5% 2007 Top Farm Gate Commodities Ag Tourism 2.3% Deer hunting leases 2.5% Horses 4.1% Beef 5.6% Hay Duck-Turkey hunting 1.1% Silage leases Other 1.5% 0.5% commodities 1.5% Timber 6.8% Dairy 26.3% Total AG Value = $87.8 million Layers 47.9% Trends in Putnam County: Number of Farms & Average Farm Size Number of Farms, PutnamCounty 400 300 Acres 225 218 181 200 100 Source: 1945-2002 (quinquennial) Censuses of Agriculture R 02 20 97 92 19 19 87 19 82 19 78 19 74 19 69 19 64 19 59 19 49 54 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 19 1000 900 800 700 600 500 400 300 200 100 0 Average Farm Size Putnam Co. Georgia Trends in Putnam County: Land in Farms & Farms by Size 160 140 120 100 80 60 40 20 0 Percent of Farms by Size, 2002 40 Putnam Co. Georgia 30 20 40.7 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 Putnam County 10 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 Putnam County Number of Farms by Commodity 1987 1992 1997 2002 120 97 100 80 71 60 35 40 20 0 Beef Cows Milk Cows Source: 1987-2002 (quinquennial) Censuses of Agriculture Hay How Do We Compare ? Georgia, Putnam and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $2,500 $2,000 $1,500 $1,000 $500 $0 $2,078 $957 $636 $448 $209 $376 $1,472 $1,375 $82 $282 $186 $877 $477 $213 $86 $250 r k a e n i i e m c es rgan n g p a o n e w r s c n e o t a ld n Jo J a Gr Mo Ge Pu Ba H Sources: 2002 Census of Agriculture and 2007 Farm Gate Value Report 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? Putnam County Economy Agriculture OUTPUT Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Output in $ Millions Percent 87.818 0.527 127.353 259.673 96.409 140.314 105.000 153.458 89.110 8.3 0.0 12.0 24.5 9.1 13.2 9.9 14.5 8.4 Total County Economic Output = $1.06 billion Putnam County Economy Agriculture + Directly Related Businesses OUTPUT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-Real Est Services Government Output in $ Millions Percent 310.825 0.527 127.353 36.665 96.409 140.314 105.000 153.458 89.110 29.3 0.0 12.0 3.5 9.1 13.2 9.9 14.5 8.4 Total County Economic Output = $1.06 billion Putnam County Employment Total Jobs = 9,627 AG + Directly Related 1,560 16.2% Mining 18 0.2% Construction 1,054 10.9% Manufacturing 634 6.6% Trans-UtilitiesInfo 410 4.3% State & Federal Government 843 8.8% Public Education 854 8.9% Trade 2,034 21.1% Other Services 1,383 14.4% Professional Services 531 5.5% Primary data source: Center for Agribusiness & Economic Development, UGA Finance-InsReal Est 307 3.2% An Economic Snapshot of Putnam County ¾ How much of Putnam County’s total economic output comes from food and fiber production? ¾ AG value alone of $87.8 million consisting of Farm Gate Value and landscape services comprises 8.3% of the county’s economy. ¾ AG plus directly related businesses (ex. sawmills, pesticides/chemicals, etc.) comprise 29.3% 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% Putnam Co. 29.3% 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 Putnam County Agriculture IMPACT Direct $ Millions Indirect $ Millions 87.818 0 Mining 0 0.022 Construction 0 0.569 Manufacturing 0 1.509 Trans-Utilities-Info 0 4.196 Trade 0 3.514 Finance-Ins-Real Est 0 4.368 Services 0 13.236 Government 0 0.478 Agriculture 87.818 27.892 Total Total Impact of Production AG = $115.7 million 10.9% of total economy Putnam County Production Agriculture + Directly Related Businesses IMPACT Direct $ Millions Indirect $ Millions 310.825 0 Mining 0 0.051 Construction 0 1.621 Manufacturing 0 4.514 Trans-Utilities-Info 0 16.701 Trade 0 9.827 Finance-Ins-Real Est 0 14.031 Services 0 36.634 Government 0 1.502 310.825 84.880 Agriculture + Direct Total Total Impact of AG + Directly Related = $395.7 million 37.3% of total economy Putnam County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 1,560 0 Construction 0 22 Manufacturing 0 10 Trans-Utilities-Info 0 97 Trade 0 124 Finance-Ins-Real Est 0 68 Services 0 515 Agriculture + Direct 0 8 Government Total Impact of AG + Directly Related Employment = 2,404 Jobs 25.0% of total employment What These Numbers Mean: A Brief Explanation ¾ Direct impact is $310.8 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $9.8 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. Putnam County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $395.7 million. ¾ The total county output is $1.06 billion. ¾ Thus, food and fiber (directly and indirectly) account for 37.3% 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% Putnam Co. 37.3% Contact Information Prepared by: Sue Boatright and Sharon Kane 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 #09-01A January, 2009