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

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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
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