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

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The Economic Importance
of Food and Fiber
A Spotlight on Pike County, Georgia
Prepared for
Pike 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
Pike County
2010 Trend CAED
18,662
18,072
17,204
2010 OPB Proj.
2007 Est.
13,688
2000
10,224
8,937
7,316
7,138
8,459
10,375
10,853
1990
1980
1970
1960
1950
1940
1930
0
5,000
10,000
15,000
Primary data sources: U.S. Census Bureau, decennial censuses & estimate; OPB (State Office of
Planning and Budget) CAED (Center for Agribusiness & Economic Development).
20,000
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%
Pike Co.
= 25.7%
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%
Pike Co.
70.3%
Primary data sources:
U.S. Census of Agriculture, 2002
Forest Statistics for Georgia, 1997
Components of 2007 Property Tax Gross Digest
Pike County
Residential
55.0%
Heavy
Equipment
0.3%
Timber *
0.2%
Mobile Home
0.5%
Motor Vehicle
9.0%
Public Utility
1.7%
Primary data source:
GA Dept. of Revenue
Ag-PreferentialEnviron-Conserv
25.6%
Industrial
2.1%
Commercial
5.7%
40% Assessment Value of Property
Gross Digest = $570,809,189
Homestead & Property Exemptions = $475,296,506
Net M&O Digest = $95,512,683
Value of exempt property = $13,174,067
* 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
PIKE
55.0
25.6
5.7
2.1
1.7
9.0
0.5 0.18
COWETA
FAYETTE
LAMAR
MERIWETHER
SPALDING
UPSON
60.4
7.5
14.9
5.7
4.3
6.9
0.1 0.04
69.1
2.2
15.6
5.3
1.3
6.4
0.1 0.00
51.1
22.3
9.1
5.3
3.9
7.8
0.4 0.13
32.4
42.3
8.2
3.3
4.0
7.8
1.3 0.47
43.8
14.1
18.0
14.5
1.9
7.5
0.1 0.04
38.9
19.3
14.2
15.1
4.0
7.4
0.7 0.23
Avg. GA Co.
42.4
23.8
12.7
7.0
5.0
7.2
1.1
Primary data source: GA Dept. of Revenue
.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 Pike County
¾ 2007 Farm Gate Value in Pike Co.
was $25.7 million. Adding $2.6
million of landscape services
increased the total agricultural
production value to $28.3 million.
¾ The highest value commodity group
was poultry/eggs, representing
36.1% of the total agricultural
production value.
Pike County
2007 Agricultural Production Value
2007 Agricultural Production
Orn Hort
17.9%
2007 Top Farm Gate Commodities
Landscape
Fruits-Nuts Other
1.7% services
4.5%
9.3%
Vegetables
0.7%
Greenhouse
4.2%
Poultry-Eggs
36.1%
Dairy
3.1%
Hay Container
1.8% Nursery
1.7%
Rest of
Commodities
8.0%
Peaches
4.2%
Timber
4.4%
Beef
8.8%
Forestry
5.1%
LivestockAquaculture
20.3%
Row-Forage
crops
4.4%
Horses
10.1%
Broilers
39.8%
Field Nursery
13.9%
Total AG Value = $28.3 million
Trends in Pike County:
Number of Farms & Average Farm Size
Number of Farms, Pike County
Average Farm Size
1400
300
Pike Co.
Georgia
1200
1000
A c re s
200
800
200
100
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
19
19
1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997 2002 2007
19
45
0
54
0
49
400
392
118
19
600
212
Trends in Pike County:
Land in Farms & Farms by Size
Land in Farms
Pike County
Percent of Farms by Size, 2007
200
Pike Co.
Georgia
Acres X 1,000
140
150
120
100
80
60
100
46.1
40
50
20
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
0
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 Pike County
Number of Farms by Commodity
2002
2007
180
160
140
156
136
122
120
99
100
80
60
40
31
23
20
26
7
0
Beef Cows
Layers
Source: 2002-2007 (quinquennial) Censuses of Agriculture
Hay
Orchards
How Do We Compare ?
Georgia, Pike and Surrounding Counties
Farm Gate Value
$ Per Farm (thousands)
$ Per Acre
$1,600
$1,400
$1,200
$1,000
$1,432
$1,139
$800
$600
$400
$1,265
$557
$242
$200
$65
$395
$270
$45
$115
$167
$0
ia
g
r
o
Ge
e
Pik
te
ta
t
e
e
w
y
Co
Fa
r
ar
e
h
m
et
La
w
i
r
Me
Sources: 2007 Census of Agriculture and 2007 Farm Gate Value Report
$74
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?
Pike County Economy
Agriculture OUTPUT
Output in $ Millions
Agriculture
Percent
8.3
28.285
Mining
1.448
0.4
Construction
28.1
95.318
Manufacturing
29.115
8.6
Trans-Utilities-Info
3.7
12.518
Trade
4.1
13.794
Finance-Ins-RE
67.859
20.0
Services
51.832
15.3
Government
38.910
11.5
Total County Economic Output = $339 million
Pike County Economy
Agriculture + Directly Related Businesses OUTPUT
Output in $ Millions
Percent
29.428
8.7
Agriculture + Direct
1.448
0.4
Mining
95.318
28.1
Construction
27.973
8.2
Manufacturing
12.518
3.7
Trans-Utilities-Info
13.794
4.1
Trade
20.0
67.859
Finance-Ins-Real Est
51.832
15.3
Services
38.910
11.5
Government
Total County Economic Output = $339 million
Pike County Employment
Total Jobs = 3,653
AG + Directly
Related
537
14.7%
Mining
11
0.3%
Construction
797
21.8%
State &
Federal
Government
351
9.6%
Public
Education
465
12.7%
Professional
Other Services Services
565
269
15.5%
7.4%
Primary data source: Center for Agribusiness & Economic Development, UGA
Manufacturing
158
4.3%
Trans-UtilitiesInfo
106
2.9%
Trade
230
6.3%
Finance-InsReal Est
164
4.5%
An Economic Snapshot
of Pike County
¾ How much of Pike County’s total
economic output comes from food and
fiber production?
¾ AG value alone of $28.3 million
consisting of Farm Gate Value and
landscape services comprises 8.3% of
the county’s economy.
¾ AG plus directly related businesses (ex.
logging, etc.) comprise 8.7% 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%
Pike Co.
8.7%
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
Pike County
Agriculture IMPACT
Direct $ Millions
Indirect $ Millions
28.285
0
Mining
0
0.019
Construction
0
0.176
Manufacturing
0
0.029
Trans-Utilities-Info
0
0.517
Trade
0
0.295
Finance-Ins-Real Est
0
1.387
Services
0
0.688
Government
0
0.125
Agriculture
Total
28.285
3.236
Total Impact of Production AG = $31.5 million
9.3% of total economy
Pike County
Production Agriculture + Directly Related Businesses IMPACT
Direct $ Millions
Indirect $ Millions
29.428
0
Mining
0
0.019
Construction
0
0.177
Manufacturing
0
0.030
Trans-Utilities-Info
0
0.527
Trade
0
0.306
Finance-Ins-Real Est
0
1.421
Services
0
0.712
Government
0
0.127
Agriculture + Direct
0
3.320
Total
Total Impact of AG + Directly Related = $32.7 million
9.7% of total economy
Pike County
Production Agriculture + Directly Related Industries
Employment IMPACT
Direct
Indirect
482
0
Construction
0
2
Manufacturing
0
0
Trans-Utilities-Info
0
4
Trade
0
4
Finance-Ins-Real Est
0
5
Services
0
12
Agriculture + Direct
0
1
Government
Total Impact of AG + Directly Related Employment = 511 Jobs
14% of total employment
What These Numbers Mean:
A Brief Explanation
¾ Direct impact is $29.4 million. This
includes food and fiber production,
processing and directly related
manufacturing.
¾ Indirect impact from the Trade sector is
$306 thousand. 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.
Pike County Food and Fiber
Impact Conclusions
¾ The total impact of food and fiber
production, processing and direct
manufacturing is $32.7 million.
¾ The total county output is $339
million.
¾ Thus, food and fiber (directly and
indirectly) account for 9.7% 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%
Pike Co.
9.7%
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
#09-09A
March, 2009
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