The Economic Importance of Food and Fiber A Spotlight on Union County, Georgia Prepared for Union County Cooperative Extension September, 2007 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Union County 22,911 23,349 20,652 2010 Trend CAED 2010 OPB 2006 Est. 17,289 2000 11,993 1990 9,390 6,811 6,510 7,318 1980 1970 1960 1950 7,680 6,340 1940 1930 0 5,000 10,000 15,000 20,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development). 25,000 Population Change: 2000-2006 LOSS 0 – 6.4% 6.4 – 14.4% 14.4 – 34% 34 – 53.4% Avg. GA County = 9.1% GA = 14.4% US = 6.4% Union Co. 19.5% Primary data source: U.S. Census Bureau (3/07) 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% Union Co. 82.2% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2006 Property Tax Gross Digest Union County Residential 70.4% Timber * 0.00% obile Home 0.5% otor Vehicle 4.5% Public Utility 1.1% Commercial 9.1% Industrial 0.7% Ag-PreferentialEnvironConserv 13.7% 40% Assessment Value of Property Gross Digest = $1,330,404,796 STATE Homestead & Property Exemptions = $123,770,994 Net M&O Digest = $1,206,633,802 Primary data source: GA Dept. of Revenue Value of exempt property = $166,531,091 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2006 County % Residential UNION DAWSON FANNIN GILMER LUMPKIN TOWNS WHITE Avg. GA Co. 70.4 62.4 72.3 55.8 44.5 76.9 58.2 41.9 Primary data source: GA Dept. of Revenue % Agri- % Com- % In% Motor cultural mercial dustrial Vehicle 13.7 16.8 8.7 24.5 31.6 8.8 22.2 22.5 9.1 14.2 9.4 10.0 12.9 8.6 8.6 12.8 0.7 0.3 0.7 2.0 2.4 0.1 1.1 7.6 4.5 4.7 6.6 4.9 5.6 3.7 6.6 7.4 % Other 1.6 1.6 2.2 2.8 3.0 1.8 3.4 7.7 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 2006 Farm Gate Value was $10.4 billion. Adding the value of landscape services increased the total agricultural production value to $12.2 billion. ¾ Total food and fiber production and directly related businesses account for a $34.5 billion output impact on Georgia's $55 billion economy. Production Agriculture: 2006 Georgia Total Agricultural Production Value $12.2 Billion Landscape services Other Income 14.7% 5.3% Poultry & Eggs 36.1% Fruits & Nuts 2.5% Forestry & Products 5.5% Ornamental Horticulture 6.3% Vegetables 6.8% Livestock & Aquaculture 10.4% Row & Forage Crops 12.4% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $385 2006 Farm Gate Value by County in Millions of Dollars What We Know about Union County ¾ 2006 Farm Gate Value in Union Co. was $26.9 million. Adding $866 thousand of landscape services increased the total agricultural production value to $27.7 million. ¾ The highest value commodity group was ornamental horticulture, representing 35% of the total agricultural production value. Union County 2006 Agricultural Production Value 2006 Agricultural Production Other 3.2% Orn Hort 35.0% 2006 Top Farm Gate Commodities Landscape services 3.1% Poultry-Eggs 32.8% Sweet Corn Ag Tourism 2.9% 3.1% Breeder Pullet Unit 5.2% Container Nursery 1.1% Field Nursery 1.1% Rest of Commodities 6.1% Beef 5.5% Layers 10.9% Vegetables 5.0% LivestockAquaculture 18.4% Row-Forage crops 2.4% Horses 12.4% Total AG Value = $27.7 million Greenhouse 33.9% Broilers 17.8% Trends in Union County: Number of Farms & Average Farm Size Number of Farms, Union County Average Farm Size 300 1400 Union Co. Georgia 1200 200 Acres 1000 800 600 75 100 330 200 Source: 1945-2002 (quinquennial) Censuses of Agriculture 92 19 97 R 20 02 19 87 19 78 82 19 19 69 74 19 19 59 64 19 19 54 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 49 0 19 400 218 Trends in Union County: Land in Farms & Farms by Size Land in Farms Union County Percent of Farms by Size, 2002 200 Union Co. Georgia A cres X 1,000 100 150 80 60 100 40 24.789 50 20 0 9 19 2 97 R 20 02 87 19 82 19 78 19 74 19 69 19 64 19 59 19 54 19 19 50 19 19 45 0 1-9 acres Source: 1945-2002 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 500-999 acres acres 1000+ acres Trends in Union County Number of Farms by Commodity 180 167 160 140 1987 1992 1997 2002 139 120 100 80 60 40 29 13 20 0 Beef Cows Corn for Grain Source: 1987-2002 (quinquennial) Censuses of Agriculture Hay Layers How Do We Compare ? Georgia, Union Co. and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $8,000 $7,000 $6,000 $7,668 $5,000 $4,000 $2,982 $3,000 $2,000 $1,000 $957 $210 $1,084 $81 $1,943 $1,764 $272 $131 $626 $0 ia g r o Ge n n o o i s w Un Da in n n Fa er m Gil kin p m Lu Sources: 2002 Census of Agriculture and 2006 Farm Gate Value Report $166 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? Union County Economy Agriculture OUTPUT Output in $ Millions 27.740 3.297 76.193 63.835 59.483 99.951 53.424 145.278 119.565 Percent 4.3% 0.5% 11.7% 9.8% 9.2% 15.4% 8.2% 22.4% 18.4% Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $648.8 million Union County Economy Agriculture + Directly Related Businesses OUTPUT Agriculture + Direct Output in $ Millions 39.717 3.297 76.193 51.858 59.483 99.951 53.424 145.278 119.565 Percent 6.1% 0.5% 11.7% 8.0% 9.2% 15.4% 8.2% 22.4% 18.4% Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $648.8 million An Economic Snapshot of Union County ¾ How much of Union County’s total economic output comes from food and fiber production? ¾ AG value alone of $27.7 million consisting of Farm Gate Value and landscape services comprises 4.3% of the county’s economy. ¾ AG plus directly related businesses (ex. logging, etc.) comprise 6.1% 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% Union Co. 6.1% 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 Union County Agriculture IMPACT Direct $ Millions 27.740 0 0 0 0 0 0 0 0 27.740 Indirect $ Millions 0 .000 .099 .196 .699 1.699 1.143 2.816 1.546 8.199 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Total Impact of Production AG = $35.9 million—5.5% of total economy Union County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions 39.717 0 0 0 0 0 0 0 0 39.717 Indirect $ Millions 0 .000 .118 .273 .827 2.210 1.499 3.632 1.962 10.520 Total Impact of AG + Directly Related = $50.2 million—7.7% of total economy Union County Production Agriculture + Directly Related Industries Employment IMPACT Direct 853 0 0 0 0 0 0 0 0 Indirect 0 0 1 2 7 31 12 68 1 Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Impact of AG + Directly Related Employment = 976 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $39.7 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $2.2 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. Union County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $50.2 million. ¾ The total output is $648.8 million. ¾ Thus, food and fiber (directly and indirectly) account for 7.7% of the total output. Food and Fiber Production and Directly Related Manufacturing IMPACT as % of Total Output 0 - 10% 10 - 25% 25 - 40% 40 - 60% 60 - 84% Union Co. 7.7% Contact Information Prepared by: John C. McKissick, Sue Boatright, & Archie Flanders 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 #0727A September, 2007