The Economic Importance of Food and Fiber A Spotlight on Thomas County, Georgia Prepared for Thomas County Cooperative Extension March, 2009 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Thomas County 2010 Trend CAED 46,180 46,235 45,237 42,737 38,986 38,098 34,515 34,319 33,932 31,289 32,612 2010 OPB Proj. 2007 Est. 2000 1990 1980 1970 1960 1950 1940 1930 0 10,000 20,000 30,000 40,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; OPB (State Office of Planning and Budget) CAED (Center for Agribusiness & Economic Development). 50,000 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% Thomas Co. = 5.9% 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% Thomas Co. 71.3% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2007 Property Tax Gross Digest Thomas County Residential 37.1% Ag-PreferentialEnviron-Conserv 24.9% Timber * 0.4% Mobile Home 1.5% Motor Vehicle 8.2% Primary data source: GA Dept. of Revenue Public Utility 2.1% Industrial 5.2% Commercial 20.5% 40% Assessment Value of Property Gross Digest = $1,240,354,211 Homestead & Property Exemptions = $104,856,648 Net M&O Digest = $1,135,497,563 Value of exempt property = $163,484,558 * 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 THOMAS BROOKS COLQUITT COOK DECATUR GRADY MITCHELL 37.1 27.4 42.2 32.1 37.4 43.4 28.4 24.9 44.5 15.6 27.4 18.8 28.5 35.7 20.5 6.3 20.2 20.1 15.4 10.3 14.2 5.2 7.8 4.2 6.2 14.6 5.6 8.6 2.1 8.2 1.5 0.45 3.2 7.6 2.3 1.04 3.9 10.8 2.4 0.69 3.6 8.2 1.7 0.64 4.0 7.7 1.3 0.78 2.0 8.1 1.5 0.58 4.3 6.9 1.2 0.65 Avg. GA Co. 42.4 23.8 12.7 7.0 5.0 Primary data source: GA Dept. of Revenue 7.2 1.1 .9 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 Thomas County ¾ 2007 Farm Gate Value in Thomas Co. was $105.8 million. Adding $7.9 million of landscape services increased the total agricultural production value to $113.7 million. ¾ The highest value commodity group was row-forage crops, representing 27.3% of the total agricultural production value. Thomas County 2007 Agricultural Production Value 2007 Agricultural Production Other 21.8% Landscape services 7.0% 2007 Top Farm Gate Commodities Poultry-Eggs 11.0% Fruits-Nuts 3.6% Container Nursery Dairy 2.7% 3.2% Rest of Commodities 22.9% Timber 5.7% Beef 6.2% Orn Hort 4.8% Vegetables 3.9% Peanuts 4.3% Pecans 3.3% Forestry 5.7% LivestockAquaculture 15.0% Row-Forage crops 27.3% Cotton 20.5% Horses 6.6% Broilers 10.7% Total AG Value = $113.7 million Ag-Tourism 13.9% Trends in Thomas County: Number of Farms & Average Farm Size Number of Farms, Thomas County Average Farm Size 3000 500 400 2000 300 A c re s 2500 1500 1000 485 421 Thomas Co. Georgia 212 200 100 500 Source: 1945-2007 (quinquennial) Censuses of Agriculture 07 02 20 20 97 92 19 19 87 19 82 78 19 19 74 69 19 19 64 19 59 54 19 19 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997 2002 2007 19 45 0 49 0 Trends in Thomas County: Land in Farms & Farms by Size 400 350 300 250 200 150 100 50 0 Percent of Farms by Size, 2007 200 Thomas Co. Georgia 150 204.2 100 50 0 19 45 19 5 19 0 5 19 4 59 19 6 19 4 6 19 9 74 19 7 19 8 8 19 2 87 19 9 19 2 9 20 7 02 20 07 Acres X 1,000 Land in Farms Thomas County Source: 1945-2007 (quinquennial) Censuses of Agriculture 1-9 acres 10-49 acres 50-179 180-499 500-999 acres acres acres 1000+ acres Trends in Thomas County Number of Farms by Commodity 2002 2007 180 160 153 142 140 120 100 80 65 72 60 58 60 40 20 0 Beef Cows Corn for Grain Cotton Source: 1987-2007 (quinquennial) Censuses of Agriculture Hay Peanuts for nuts Orchards How Do We Compare ? Georgia, Thomas and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $2,000 $1,500 $1,980 $1,576 $1,000 $1,148 $973 $1,139 $518 $500 $0 $242 ia g r o Ge $218 s a om h T $402 $604 tt ks i o u lq o Bro C $406 ok o C Sources: 2007 Census of Agriculture and 2007 Farm Gate Value Report $588 r u t ca e D 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? Thomas County Economy Agriculture OUTPUT Output in $ Millions Agriculture Percent 3.8 113.719 Mining 44.397 1.5 Construction 4.1 123.951 Manufacturing 904.446 30.1 Trans-Utilities-Info 3.6 108.029 Trade 13.8 414.898 Finance-Ins-RE 327.032 10.9 Services 747.483 24.9 Government 223.624 7.4 Total County Economic Output = $3.008 billion Thomas County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Millions Agriculture + Direct Percent 292.235 9.7 Mining 44.397 1.5 Construction 4.1 123.951 Manufacturing 725.929 24.1 Trans-Utilities-Info 108.029 3.6 Trade 414.898 13.8 Finance-Ins-Real Est 327.032 10.9 Services 747.483 24.9 Government 223.624 7.4 Total County Economic Output = $3.008 billion Thomas County Employment Total Jobs = 27,942 Construction 1,014 3.6% Manufacturing 2,492 8.9% Mining 487 AG + Directly 1.7% Related 2,295 8.2% Trans-UtilitiesInfo 573 2.1% Finance-InsReal Est 1,269 4.5% State & Federal Government 1,650 5.9% Public Education 2,407 8.6% Trade 4,509 16.1% Professional Services 4,807 17.2% Other Services 6,440 23.0% Primary data source: Center for Agribusiness & Economic Development, UGA An Economic Snapshot of Thomas County ¾ How much of Thomas County’s total economic output comes from food and fiber production? ¾ AG value alone of $113.7 million consisting of Farm Gate Value and landscape services comprises 3.8% of the county’s economy. ¾ AG plus directly related businesses (ex. paperboard mills, animal slaughtering, etc.) comprise 9.7% 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% Thomas Co. 9.7% 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 Thomas County Agriculture IMPACT Direct $ Millions Indirect $ Millions 113.719 0 Agriculture 0 0.022 Mining 0 0.560 Construction 0 2.021 Manufacturing 0 2.875 Trans-Utilities-Info 0 7.911 Trade 0 10.552 Finance-Ins-Real Est 0 12.207 Services 0 1.193 Government 113.719 37.340 Total Total Impact of Production AG = $151.1 million 5.0% of total economy Thomas County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-Real Est Services Government Total Direct $ Millions Indirect $ Millions 292.235 0 0 0 0 0 0 0 0 292.235 0 0.152 1.738 4.751 13.590 23.563 18.581 29.862 2.551 94.788 Total Impact of AG + Directly Related = $387 million 12.9% of total economy Thomas County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 2,295 0 Mining 0 1 Construction 0 19 Manufacturing 0 20 Trans-Utilities-Info 0 59 Trade 0 219 Finance-Ins-Real Est 0 73 Services 0 399 Agriculture + Direct 0 15 Government Total Impact of AG + Directly Related Employment = 3,100 Jobs 11.1% of total employment What These Numbers Mean: A Brief Explanation ¾ Direct impact is $292.2 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $23.6 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. Thomas County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $387 million. ¾ The total county output is $3.0 billion. ¾ Thus, food and fiber (directly and indirectly) account for 12.9% 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% Thomas Co. 12.9% 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 #09-08A March, 2009