The Economic Importance of Food and Fiber A Spotlight on Greene County, Georgia Prepared for Greene 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 Greene County 16,760 15,962 15,635 14,406 2015 Trend CAED 2010 Trend CAED 2008 Est. 2000 11,793 11,391 10,212 11,193 12,843 13,709 12,616 1990 1980 1970 1960 1950 1940 1930 0 3,000 6,000 9,000 12,000 15,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED Trend (Center for Agribusiness & Economic Development). 18,000 Population Change: 2000-2008 LOSS Gain < US Gain < GA but > US Gain > GA Greene Co. = 8.5% 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% Greene Co. = 90% 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 Greene County Timber * 0.3% Heavy Equipment 0.01% Residential 69.3% Mobile Home 0.2% Motor Vehicle 2.7% Public Utility 1.4% Industrial 2.4% Commercial 8.0% Ag-PreferentialEnviron-Conserv 15.7% Primary data source: GA Dept. of Revenue 40% Assessment Value of Property Gross Digest = $1,916,984,781 Homestead & Property Exemptions = $165,687,963 Net M&O Digest = $1,751,296,818 Value of exempt property = $89,140,582 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2008 County % % In% Agri- % ComResiduscultural mercial dential trial % Mo% % % UtilMotor bile Timity Veh Home ber GREENE 69.3 15.7 8.0 2.4 1.4 2.7 0.2 0.31 HANCOCK 45.2 29.7 2.9 2.2 10.8 3.7 2.8 2.58 MORGAN 32.5 46.2 10.9 4.3 1.5 4.0 0.4 0.18 OCONEE 57.2 22.9 11.8 1.2 1.4 5.4 0.1 0.03 OGLETHORPE 39.3 44.9 4.2 0.6 2.3 6.9 0.8 0.88 PUTNAM 68.9 8.8 7.8 2.7 7.5 3.7 0.3 0.20 TALIAFERRO 11.1 69.5 10.1 0.9 2.7 3.1 0.6 2.10 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% Row & Forage Crops Livestock & 14.3% Aquaculture 9.0% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $442 2008 Farm Gate Value by County in Millions of Dollars What We Know about Greene County ¾ 2008 Farm Gate Value in Greene Co. was $74.1 million. Adding $5.2 million of landscape services increased the total agricultural production value to $79.3 million. ¾ The highest value commodity group was ornamental horticulture, representing 29.6% of the total agricultural production value. Greene County 2008 Agricultural Production Value 2008 Agricultural Production Fruits-NutsVeges 0.05% 2008 Top Farm Gate Commodities Other Landscape 0.69% services 6.6% Poultry-Eggs 25.2% Orn Hort 29.6% Rest of commodities Field Nursery 21.5% 0.4% Broilers 27.0% Container Nursery 0.9% Horses 1.7% Forestry 7.5% LivestockAquaculture 25.3% Row-Forage crops 5.1% Beef 3.7% Hay 5.0% Dairy 11.5% Timber Quail 8.1% 10.1% Total AG Value = $79.3 million Greenhouse 10.2% Trends in Greene County: Number of Farms & Average Farm Size Number of Farms, Greene County Average Farm Size 400 1600 Greene Co. Georgia 1400 300 1200 Acres 1000 800 600 247 200 200 100 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 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997 2002 2007 19 45 0 49 0 19 400 224 212 Trends in Greene County: Land in Farms, Harvested Cropland & Farms by Size Land in Farms & Harvested Cropland Greene County Acres X 1,000 200 Land in farms Percent of Farms by Size, 2007 40 Greene Co. Harvested cropland Georgia 30 150 20 100 50 55.3 10 9.8 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 0 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 Greene County Number of Farms by Commodity 2002 2007 180 160 140 153 120 100 112 80 77 60 40 20 11 0 Cattle/calves inv. Layers inv. 6 15 Broilers sold Source: 2002-2007 (quinquennial) Censuses of Agriculture Hay Horses/ponies Floriculture crops How Do We Compare? Georgia, Greene and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $3,000 $2,500 $1,500 $1,000 $500 $2,544 $2,413 $2,512 $2,000 $1,481 $1,176 $1,339 $249 $300 $375 $83 $208 $280 $0 $456 $447 ia ck pe an ee ne g r am o g n e r o c r n e o o t n th Gr Mo Oc e Ge Pu l Ha g O 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? Greene County Economy Agriculture OUTPUT Output in $ Millions Agriculture Percent 9.3 79.329 Mining 7.435 0.9 Construction 18.8 159.927 Manufacturing 208.443 24.6 Trans-Utilities-Info 2.5 21.500 Trade 7.2 61.259 Finance-Ins-RE 112.480 13.2 Services 152.958 18.0 Government 45.639 5.4 Total County Economic Output = $849 million Greene County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Millions Agriculture + Direct Percent 126.388 14.9 Mining 7.435 0.9 Construction 18.8 159.927 Manufacturing 161.384 19.0 Trans-Utilities-Info 21.500 2.5 Trade 61.259 7.2 Finance-Ins-Real Est 112.480 13.2 Services 152.958 18.0 Government 45.639 5.4 Total County Economic Output = $849 million Greene County Employment Total Jobs = 7,276 AG + Directly Related 954 13.1% Mining 34 0.5% Construction 1,259 17.3% Manufacturing 588 8.1% Trans-UtilitiesInfo 193 2.7% State & Federal Government 441 6.1% Public Education 408 5.6% Trade 913 12.5% Other Services 1,232 16.9% Professional Services 906 12.5% Primary data source: Center for Agribusiness & Economic Development, UGA Finance-InsReal Est 349 4.8% An Economic Snapshot of Greene County ¾ How much of Greene County’s total economic output comes from food and fiber production? ¾ AG value alone of $79.3 million consisting of Farm Gate Value and landscape services comprises 9.3% of the county’s economy. ¾ AG plus directly related businesses (ex. logging, sawmills, etc.) comprise 14.9% 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% Greene Co. 14.9% 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 Greene County Agriculture IMPACT Direct $ Millions Indirect $ Millions 79.329 0 Mining 0 0.038 Construction 0 0.549 Manufacturing 0 0.465 Trans-Utilities-Info 0 1.069 Trade 0 1.796 Finance-Ins-Real Est 0 5.118 Services 0 5.427 Government 0 0.293 Agriculture 79.329 14.754 Total Total Impact of Production AG = $94.1 million 11.1% of total economy Greene 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 126.388 0 0 0 0 0 0 0 0 126.388 0 0.057 0.768 0.704 1.795 2.766 6.599 7.342 0.411 20.441 Total Impact of AG + Directly Related = $146.8 million 17.3% of total economy Greene County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 954 0 Agriculture + Direct 0 0 Mining 0 8 Construction 0 3 Manufacturing 0 12 Trans-Utilities-Info 0 36 Trade 0 21 Finance-Ins-Real Est 0 108 Services 0 3 Government Total Impact of AG + Directly Related Employment = 1,143 Jobs 15.7% of total employment What These Numbers Mean: A Brief Explanation ¾ Direct impact is $126.4 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $2.8 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. Greene County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $146.8 million. ¾ The total county output is $849 million. ¾ Thus, food and fiber (directly and indirectly) account for 17.3% 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% Greene Co. 17.3% 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 #09-13A May, 2009