The Economic Importance of Food and Fiber A Spotlight on Elbert County, Georgia Prepared for: Elbert County Cooperative Extension January, 2006 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Agriculture in Georgia ¾ Georgia's 2004 Farm Gate Value was $10.3 billion. Adding the value of landscape services increased the total agricultural production value to $11.2 billion. ¾ Total food and fiber production and directly related businesses account for a $49.3 billion impact on Georgia's $557 billion economy. Production Agriculture: 2004 Georgia Total Agricultural Production Value $11.2 Billion Other Income 4.1% Poultry & Eggs 41.5% Landscape services 10.2% Fruits & Nuts 2.0% Forestry & Products 5.3% Ornamental Horticulture 5.7% Vegetables 6.3% Livestock & Aquaculture 11.4% Row & Forage Crops 13.4% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $325 2004 Farm Gate Value by County in Millions of Dollars What We Know about Elbert County ¾ 2004 Farm Gate Value in Elbert Co. was $67.6 million. Adding $288 thousand of landscape services increased the total agricultural production value to $67.9 million. ¾ The highest value commodity group was poultry & eggs, representing 73.7% of the total agricultural production value. Elbert County 2004 Agricultural Production Value 2004 Agricultural Production Forestry 2.6% LivestockAquaculture 11.2% Veges-Fruits- Orn Hort Nuts 3.6% 0.1% Other 2.9% Landscape services 0.4% Row-Forage crops 5.5% 2004 Top Farm Gate Commodities Horses Hay Cotton Timber 2.4% 1.5% 2.2% 2.6% Greenhouse 3.6% Beef 4.3% Wheat 0.5% Rest of commodities 4.2% Dairy 4.6% Poultry-Eggs 73.7% Layers 13.7% Total AG Value = $67.9 million Broilers 60.3% Trends in Elbert County: Number of Farms & Average Farm Size Number of Farms, El bert County Average Farm Size 300 2500 Elbert Co. Georgia Avg. GA Co. 310 farms 2000 218 145 Acres 200 1500 100 1000 438 500 Source: 1945 - 2002 (quinquennial) Censuses of Agriculture 02 R 20 97 92 19 19 87 19 82 78 19 19 74 69 19 19 64 59 19 19 54 49 19 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 0 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 50 Source: 1945 - Elbert Co. Georgia 40 30 63.4 20 10 0 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 E lbert County 1-9 acres 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 300 1987 1992 1997 2002 267 250 186 200 150 100 50 10 12 17 0 Beef cows Source: 1987 - Milk cows inv. Layers inv 2002 (quinquennial) Censuses of Agriculture Broilers sold Hay-silage How Do We Compare ? Georgia, Elbert, and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $4,000 $3,000 $3,571 $3,218 $2,000 $957 $1,000 $209 $0 ia g r o Ge $2,875 $559 $1,066 $154 ert b l E $412 $322 $446 $159 $454 $68 rt ln pe es on r o s k i l c o Ha i d th W Lin e Ma l Og Sources: 2002 Census of Agriculture and 2004 Farm Gate Value Report 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? Elbert County Economy Agriculture - OUTPUT Output in $ Millions 68.559 14.468 31.073 331.491 29.987 92.107 36.138 67.175 114.375 Percent 8.7 1.8 4.0 42.2 3.8 11.7 4.6 8.6 14.6 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $785.4 million Elbert County Economy Agriculture + Directly Related Businesses Agriculture + Direct Output in $ Millions 162.671 14.468 31.073 237.379 29.987 92.107 36.138 67.175 114.375 Percent 20.7 1.8 4.0 30.2 3.8 11.7 4.6 8.6 14.6 Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $785.4 million 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 $68.6 million consisting of Farm Gate Value and landscape services comprises 8.7% of the county’s economy. ¾ AG plus directly related businesses (ex. poultry processing, other slaughtering, etc.) comprise 20.7% 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% 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 67.883 4.566 Agriculture 0 0.005 Mining 0 0.209 Construction 0 0.903 Manufacturing 0 1.718 Trans-Utilities-Info 0 5.680 Trade 0 1.498 Finance-Ins-RE 0 2.125 Services 0 2.797 Government 67.883 19.499 Total Total Impact of Production AG = $87.4 million – 11.1% of total economy Elbert County Agriculture and Directly Related Businesses IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions 162.671 0 0 0 0 0 0 0 0 Indirect $ Millions 4.905 0.007 0.548 13.024 3.260 11.801 3.419 5.252 5.577 162.671 47.793 Total Impact of AG + Directly Related = $210.5million—26.8% of total economy Elbert County Production Agriculture + Directly Related Industries Employment IMPACT Direct 1,358 0 0 0 0 0 0 0 0 Indirect 73 0 7 86 27 169 27 112 10 Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Impact of AG + Directly Related Employment = 1,868 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $162.7 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $11.8 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. Elbert County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $210.5 million. ¾ The total output is $785.4 million. ¾ Thus, food and fiber (directly and indirectly) account for 26.8% 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% Elbert Co. 26.8% 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 #06_02A January, 2006