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