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

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The Economic Importance of Food and Fiber

A Spotlight on Troup County, Georgia

Prepared for

Troup County Cooperative Extension

November, 2009 by:

The Center for Agribusiness and Economic Development

College of Agricultural and Environmental Sciences

The University of Georgia

Total Population

Troup Co unty

2015 Trend CAED

2010 Trend CAED

2008 Est.

2000

1990

1980

1970

1960

1950

1940

1930

0

55,536

50,003

44,466

47,189

65,535

64,233

58,779

68,788

49,841

43,879

36,752

10,000 20,000 30,000 40,000 50,000 60,000 70,000

Primary data sources: U.S. Census Bureau, decennial censuses & estimate;

CAED (Center for Agribusiness & Economic Development).

Population Change: 2000-2008

LOSS

Gain < US

Gain < GA but > US

Gain > GA

Troup Co. = 9.3%

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%

Troup Co. = 77%

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

Troup County

Residential

43.7%

Ag-Preferential-

Environ-Conserv

10.6%

Heavy

Equipment

0.03%

Commercial

16.0%

Timber *

0.1%

Mobile Home

0.2%

Motor Vehicle

6.3%

Primary data source:

GA Dept. of Revenue

Public Utility

1.8%

Industrial

21.2%

40% Assessment Value of Property

Gross Digest = $2,165,890,578

Homestead & Property Exemptions = $256,781,265

Net M&O Digest = $1,909,109,313

Value of exempt property = $272,251,071

* Timber taxed at 100% based on previous year sales

County Property Tax Digest Comparisons: 2008

County

TROUP

CARROLL

COWETA

HARRIS

HEARD

MERIWETHER

TALBOT

Avg. GA Co.

57.4

23.7

32.9

18.2

42.3

% Residential

% Agricultural

% Commercial

43.7

10.6

16.0

% Industrial

21.2

52.4

59.9

6.7

7.0

17.9

15.5

11.2

6.5

% Utility

1.8

%

Motor

Veh

6.3

% Mobile

Home

0.2

%

Timber

0.11

3.0

4.0

8.3

6.9

0.4

0.1

0.08

0.06

25.3

27.6

42.2

46.4

24.6

3.3

4.1

8.3

2.3

12.6

1.0

2.8

3.2

19.8

6.9

6.1

34.2

3.8

7.0

4.8

6.5

5.4

7.9

5.1

7.0

0.2

1.3

1.2

0.3

1.0

0.22

0.65

0.48

0.94

0.72

Primary data source: GA Dept. of Revenue ( preliminary avg. -- Fulton Co. digest not verified)

Farm/Forest

Commercial

Residential

Revenue : Expenditure Ratios

$ of Revenue for Each $ of Expenditure

$1.92

$2.86

$1.01

$1.18

$2.70

$3.19

$1.17

$1.93

$1.25

$0.64

$0.87

$0.83

$0.90

$0.87

$3.45

Cherokee

Jones

Carroll

Oconee

US Avg

$0.00

$1.00

$2.00

$3.00

$4.00

Dorfman, Jeffery, The Economics of Growth, Sprawl and Land Use Decisions (presentation), Dept. of Ag &

Applied Economics, UGA, January 2004.

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

Fruits & Nuts

1.9%

Landscape services

15.4%

Poultry &

Eggs

40.1%

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 Troup County

¾ 2008 Farm Gate Value in Troup Co. was $18.7 million. Adding $18.2 million of landscape services increased the total agricultural production value to $36.9 million.

¾ The highest value commodity group was landscape services, representing

49% of the total agricultural production value.

Troup County

2008 Agricultural Production Value

2008 Agricultural Production

Orn Hort

2.9%

Fruits-Nuts-

Veges

0.8%

Forestry

10.7%

Other

13.5%

Landscape services

49.4%

Livestock-

Aquaculture

20.7%

Row-Forage crops

2.1%

Poultry-Eggs

0.01%

2008 Top Farm Gate Commodities

Pine Straw

2.5%

Hay

2.7%

Field Nursery

1.5%

Container

Nursery

3.5%

Dairy

7.4%

Rest of commodities

7.1%

Timber

18.1%

Beef

17.8%

Hunting leases

12.1%

Ag Tourism

13.6%

Horses

13.7%

Total AG Value = $36.9 million

Trends in Troup County:

Number of Farms & Average Farm Size

Number of Farms, Troup County

1600

1400

1200

1000

800

600

400

200

241

0

1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997 2002 2007

100

300

Troup Co.

Georgia

Average Farm Size

200

0

19

45

19

49

19

54

19

59

19

64

19

69

19

74

19

78

19

82

19

87

19

92

19

97

20

02

20

07

212

157

Source: 1945-2007 (quinquennial) Censuses of Agriculture

Trends in Troup County:

Land in Farms, Harvested Cropland

& Farms by Size

200

Land in Farms & Harvested Cropland

Troup County

Land in farms Harvested cropland

150

100

37.9

50

4.7

0

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

50

40

30

Percent of Farms by Size, 2007

Troup Co.

Georgia

20

10

0

1-9 acres

10-49 acres

50-179 acres

180-499 acres

500-999 acres

1000+ acres

Source: 1945-2007 (quinquennial) Censuses of Agriculture

Trends in Troup County

Number of Farms by Commodity

1997 2002 2007

180

160

140

120

100

80

60

40

20

0

129

Beef cows

12 12 12

Milk cows Hogs & pigs Sheep & lambs Layers

32

90

Forage

Source: 1997-2007 (quinquennial) Censuses of Agriculture

How Do We Compare ?

Georgia, Troup and Surrounding Counties

Farm Gate Value

$ Per Farm (thousands) $ Per Acre

$3,000

$2,500

$2,000

$2,856

$1,500 $1,792

$1,000 $1,176

$500

$249

$0

Geo rgia Trou p

$493

$77

Car roll

$164

Cow eta

$257

$43 $48 $360

Har ris

$295

Hear d

Me riw eth er

$485

$90

Tal bot

$229

$64

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?

Troup County Economy

Agriculture OUTPUT

Output in $ Millions Percent

Agriculture

36.909

0.6

Mining

3.003

0.1

Construction

331.927

5.6

Manufacturing 2,704.565

45.7

Trans-Utilities-Info

753.088

12.7

Trade

562.508

9.5

Finance-Ins-RE

479.767

8.1

Services

807.016

13.6

Govt + non NAICS

36.909

Total County Economic Output = $5.9 Billion

0.6

Troup County Economy

Agriculture + Directly Related Businesses OUTPUT

Output in $ Millions Percent

Agriculture + Direct

85.747

1.4

Mining

3.003

0.3

Construction

331.927

6.3

Manufacturing

2,655.728

18.7

Trans-Utilities-Info 753.088

13.8

Trade

562.508

10.7

Finance-Ins-Real Est

479.767

15.4

Services

807.016

21.9

Govt + non NAICS

236.634

Total County Economic Output = $5.9 Billion

7.5

Troup County Employment

Total Jobs = 36,925

Mining

8

0.02%

AG + Directly

Related

938

2.5%

Construction

2,660

7.2%

Manufacturing

6,964

18.9%

Trans-Utilities-

Info

2,506

6.8%

Trade

6,388

17.3%

State & Federal

Government

1,370

3.7%

Public

Education

2,877

7.8%

Other Services

6,799

18.4%

Professional

Services

4,604

12.5%

Finance-Ins-

Real Est

1,809

4.9%

Primary data source: Center for Agribusiness & Economic Development, UGA

An Economic Snapshot of Troup County

¾ How much of Troup County’s total economic output comes from food and fiber production?

¾ AG value alone of $36.9 million consisting of Farm Gate Value and landscape services comprises 0.6% of the county’s economy.

¾ AG plus directly related businesses (ex. , logging, farm machinery & equipment mfg., etc.) comprise 1.4% 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%

Troup

Co.

1.4%

What is the Impact?

¾ What is the total (direct and indirect) impact of food and fiber production and directly related industries?

¾ This 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

Troup County

Agriculture IMPACT

Direct $ Millions Indirect $ Millions

Agriculture

Mining

Construction

Manufacturing

Trans-Utilities-Info

Trade

Finance-Ins-Real Est

36.909

0

0

0

0

0

0

0.000

0.123

0.849

2.137

1.452

0 2.730

Services

Government

0

0

3.978

0.166

Total 36.909

11.436

Total Impact of Production AG = $48.3 Million

0.8% of total economy

Troup County

Production Agriculture + Directly Related Businesses IMPACT

Direct $ Millions Indirect $ Millions

Agriculture + Direct

Mining

Construction

Manufacturing

85.747

0

0

0

0.000

0.324

0 1.146

Trans-Utilities-Info

Trade

Finance-Ins-Real Est

Services

0

0

0

4.586

5.429

6.177

0 9.720

Government 0 0.364

Total

85.747

27.747

Total Impact of AG + Directly Related = $113.5 Million

1.9% of total economy

Troup County

Production Agriculture + Directly Related Industries

Employment IMPACT

Direct Indirect

Agriculture + Direct

Mining

Construction

Manufacturing

Trans-Utilities-Info

Trade

938

0

0

0

0

0

0

0

3

2

15

59

Finance-Ins-Real Est

Services

0

0

22

130

Government 0 2

Total Impact of AG + Directly Related Employment = 1,171 Jobs

3.2% of total employment

What These Numbers Mean:

A Brief Explanation

¾ Direct impact is $85.7 million. This includes food and fiber production, processing and directly related manufacturing.

¾ Indirect impact from the Trade sector is

$5.4 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.

Troup County Food and Fiber

Impact Conclusions

¾ The total impact of food and fiber production, processing and direct manufacturing is $113.5 million.

¾ The total county output is $5.9 billion.

¾ Thus, food and fiber (directly and indirectly) account for 1.9% 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%

Troup

Co.

1.9%

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

#09-25A

November, 2009

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