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

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The Economic Importance
of Food and Fiber
A Spotlight on Burke County, Georgia
Prepared for
Burke County Cooperative Extension
May, 2009
by:
The Center for Agribusiness
and Economic Development
College of Agricultural
and Environmental Sciences
The University of Georgia
Total Population
Burke County
23,162
22,842
22,732
22,243
20,579
19,349
18,255
20,596
23,458
26,520
29,224
2015 Trend CAED
2010 Trend CAED
2008 Est.
2000
1990
1980
1970
1960
1950
1940
1930
0
5,000
10,000
15,000
20,000
25,000
Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for
Agribusiness & Economic Development).
30,000
Population Change: 2000-2008
LOSS
Gain < US
Gain < GA but > US
Gain > GA
Burke Co. = 2.2%
Avg. GA County =
11.2%
GA = 18.3%
US = 8.0%
Primary data source: U.S. Census Bureau (3/09)
% of Land in Cropland & Timberland
14 - 64%
64 - 75%
75 - 83%
83 - 92%
92 - 99%
Burke Co. = 85%
GA Avg. Co. = 76%
GA Total = 78%
GA Metro = 68%
GA Nonmetro = 83%
Primary data sources:
U.S. Census of Agriculture, 2007
USDA Forest Service, 2007
Graphic by Center for Agribusiness
& Economic Development, UGA
Components of 2008 Property Tax Gross Digest
Burke County
Ag-PreferentialEnviron-Conserv
15.6%
Commercial
3.7%
Industrial
0.9%
Residential
12.7%
Public Utility
63.2%
Heavy
Equipment
0.001%
Timber *
0.5%
Mobile Home
0.6%
Primary data source:
GA Dept. of Revenue
Motor Vehicle
2.8%
40% Assessment Value of Property
Gross Digest = $1,759,086,413
Homestead & Property Exemptions = $150,777,976
Net M&O Digest = $1,608,308,437
Value of exempt property = $81,335,043
* Timber taxed at 100% based on previous year sales
County Property Tax Digest Comparisons: 2008
County
% Residential
% Agri- % Comcultural mercial
% Industrial
% Mo%
%
% UtilMotor bile
Timity
Veh Home ber
BURKE
12.7
15.6
3.7
0.9
63.2 2.8
0.6 0.52
EMANUEL
31.5
34.8
11.8
5.3
3.5
9.9
1.7 1.55
JEFFERSON
27.3
37.4
9.6
11.7
4.6
6.8
1.7 0.86
JENKINS
23.3
53.6
6.0
1.8
5.5
6.8
1.2 1.86
RICHMOND
46.1
0.9
34.1
9.2
2.5
6.7
0.5 0.03
SCREVEN
31.2
42.6
7.8
5.0
4.2
6.9
1.0 1.33
Avg. GA Co.
42.3
24.6
12.6
6.9
4.8
7.0
1.0 0.72
Primary data source: GA Dept. of Revenue
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 2008 Farm Gate Value was
$11.9 billion. Adding the value of
landscape services increased the total
agricultural production value to $14
billion.
¾ Total food and fiber production and
directly related businesses account for
a $63 billion output impact on
Georgia's $771 billion economy.
Production Agriculture: 2008
Georgia Total
Agricultural
Production Value
$11.9 Billion
Landscape
services
15.4%
Poultry &
Eggs
40.1%
Fruits & Nuts
1.9%
Forestry &
Products
4.1%
Other Income
4.4%
Ornamental
Horticulture
4.9%
Vegetables
6.0%
Livestock &
Aqua-culture
9.0%
Row &
Forage
Crops
14.3%
$0 - $20
$20 - $45
$45 - $80
$80 - $200
$200 - $442
2008 Farm Gate
Value by County
in Millions of Dollars
What We Know
about Burke County
¾ 2008 Farm Gate Value in Burke Co.
was $95.7 million. Adding $2.6
million of landscape services
increased the total agricultural
production value to $98.3 million.
¾ The highest value commodity group
was row/forage crops, representing
46.4% of the total agricultural
production value.
Burke County
2008 Agricultural Production Value
2008 Agricultural Production
Other
Fruits-Nuts 12.9%
2.8%
Orn Hort
2.0%
Vegetables
0.6%
Forestry
11.4%
LivestockAquaculture
21.3%
2008 Top Farm Gate Commodities
Landscape
services
2.6%
Rest of
commodities
21.2%
Row-Forage
crops
46.4%
Dairy
14.1%
Pine straw
2.6%
Peanuts
13.9%
Horses
2.6%
Beef
4.3%
Hunting
leases
4.8%
Silage
5.7%
Timber
9.0%
Total AG Value = $98.3 million
Cotton
9.1%
Corn
12.5%
Trends in Burke County:
Number of Farms & Average Farm Size
Number of Farms, Burke County
Average Farm Size
800
2500
Burke Co.
Georgia
700
2000
Acres
600
1500
1000
500
468
410
500
400
212
300
200
100
Source: 1945-2007 (quinquennial) Censuses of Agriculture
07
02
20
20
97
92
19
87
19
19
82
78
19
19
74
69
19
64
19
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 Burke County:
Land in Farms, Harvested Cropland
& Farms by Size
450
400
350
300
250
200
150
100
50
0
Land in farms
Percent of Farms by Size, 2007
40
Burke Co.
Harvested cropland
Georgia
30
191.8
20
83.5
10
19
45
19
50
19
54
19
59
19
64
19
69
19
74
19
78
19
82
19
87
19
92
19
97
20
02
20
07
Acres X 1,000
Land in Farms & Harvested Cropland
Burke County
0
1-9
acres
Source: 1945-2007 (quinquennial) Censuses of Agriculture
10-49
acres
50-179
acres
180-499 500-999
acres
acres
1000+
acres
Trends in Burke County
Number of Farms by Commodity
1997
2002
2007
200
180
160
144
136
140
120
100
69
80
52
60
40
40
20
0
Cattle/calves
inv
Corn for grain
Hay
Source: 1997-2007 (quinquennial) Censuses of Agriculture
Cotton
Peanuts
How Do We Compare ?
Georgia, Burke and Surrounding Counties
Farm Gate Value
$ Per Farm (thousands)
$ Per Acre
$1,400
$1,200
$1,000
$1,230
$1,176
$800
$600
$499
$400
$200
$0
$249
ia
g
r
o
Ge
$205
$363
$372
$101
$513
$431
$148
$178
$100
$155
l
s
d
n
n
e
e
e
n
n
o
k
i
u
r
v
s
o
k
n
m
an
re
er
Bu
f
c
e
h
f
m
J
c
S
E
Je
Ri
Sources: 2007 Census of Agriculture and 2008 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?
Burke County Economy
Agriculture OUTPUT
Output in $ Millions
Percent
Agriculture
98.296
6.7
Construction
27.254
1.9
Manufacturing
180.924
12.3
Trans-Utilities-Info
771.259
52.4
Trade
80.713
5.5
Finance-Ins-RE
72.790
4.9
159.139
10.8
80.275
5.5
Services
Government
Total County Economic Output = $1.47 billion
Burke County Economy
Agriculture + Directly Related Businesses OUTPUT
Output in $ Millions
Percent
Agriculture + Direct
155.080
10.5
Construction
27.254
1.9
Manufacturing
124.140
8.4
Trans-Utilities-Info
771.259
52.4
Trade
80.713
5.5
Finance-Ins-Real Est
72.790
4.9
Services
159.139
10.8
Government
80.275
5.5
Total County Economic Output = $1.47 billion
Burke County Employment
Total Jobs = 8,435
Construction
236
2.8%
AG + Directly
Related
1,263
15.0%
Manufacturing
553
6.6%
Trans-UtilitiesInfo
1,311
15.5%
Trade
1,066
12.6%
State & Federal
Government
693
8.2%
Public
Education
865
10.3%
Finance-InsReal Est
187
2.2%
Other Services
911
10.8%
Professional
Services
1,351
16.0%
Primary data source: Center for Agribusiness & Economic Development, UGA
An Economic Snapshot
of Burke County
¾ How much of Burke County’s total
economic output comes from food and
fiber production?
¾ AG value alone of $98.3 million
consisting of Farm Gate Value and
landscape services comprises 6.7% of
the county’s economy.
¾ AG plus directly related businesses (ex.
logging, animal slaughtering, etc.)
comprise 10.5% 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%
Burke Co.
10.5%
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
Burke County
Agriculture IMPACT
Direct $ Millions
Indirect $ Millions
98.296
0
Construction
0
0.103
Manufacturing
0
0.584
Trans-Utilities-Info
0
4.988
Trade
0
4.928
Finance-Ins-Real Est
0
5.509
Services
0
4.358
Government
0
0.580
Agriculture
98.296
21.050
Total
Total Impact of Production AG = $119.3 million
8.1% of total economy
Burke County
Production Agriculture + Directly Related Businesses IMPACT
Agriculture + Direct
Construction
Manufacturing
Trans-Utilities-Info
Trade
Finance-Ins-Real Est
Services
Government
Total
Direct $ Millions
Indirect $ Millions
155.080
0
0
0
0
0
0
0
155.080
0
0.150
0.665
8.825
7.364
6.645
6.008
0.732
30.389
Total Impact of AG + Directly Related = $185.5 million
12.6% of total economy
Burke County
Production Agriculture + Directly Related Industries
Employment IMPACT
Direct
Indirect
1,263
0
Construction
0
1
Manufacturing
0
2
Trans-Utilities-Info
0
39
Trade
0
80
Finance-Ins-Real Est
0
25
Services
0
97
Agriculture + Direct
0
5
Government
Total Impact of AG + Directly Related Employment = 1,512 jobs
17.9% of total employment
What These Numbers Mean:
A Brief Explanation
¾ Direct impact is $155.1 million. This
includes food and fiber production,
processing and directly related
manufacturing.
¾ Indirect impact from the Trade sector is
$7.4 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.
Burke County Food and Fiber
Impact Conclusions
¾ The total impact of food and fiber
production, processing and direct
manufacturing is $185.5 million.
¾ The total county output is $1.5
billion.
¾ Thus, food and fiber (directly and
indirectly) account for 12.6% 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%
Burke Co.
12.6%
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
#09-12A
May, 2009
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