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