The Economic Importance of Food and Fiber A Spotlight on Lowndes County, Georgia Prepared for Lowndes County Cooperative Extension October, 2012 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Trends in Lowndes County: Number of Farms Number of Farms, Lowndes County 700 600 500 400 300 200 100 0 1978 1982 1987 1992 Source: 1978-2007 (quinquennial) Censuses of Agriculture 1997 2002 2007 Trends in Lowndes County: Land in Farms, Harvested Cropland & Farms by Size Land in Farms & Harvested Cropland Lowndes County Percent of Farms by Size, 2007 Lowdes Co. 45 90000 Land in farms Harvested cropland 40 80000 35 70000 30 60000 Georgia 25 50000 20 40000 30000 15 20000 10 10000 5 0 1992 1997 2002 2007 0 1-9 acres Source: 1992-2007 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 acres 500-999 acres 1000+ acres Food and Fiber Production and Directly Related Manufacturing as % of Total Economic Output 0 - 10% 11 - 20% 21 - 30% 31 - 50% 51 – 77% Agriculture in Georgia Georgia's 2010 Farm Gate Value was $12.0 billion. Adding the value of $2.2 billion of landscape services increased the total agricultural production value to $14.2 billion. Total food and fiber production and directly related businesses account for a $68.9 billion output impact on Georgia's $719.8 billion economy. Production Agriculture: 2010 Dade Catoosa Towns Fannin Whitfield Walker Gilmer White Lumpkin Ha Gordon Chattooga be rs ha m Stephens Pickens Dawson Cherokee Bartow Franklin Banks Hall Floyd Jackson Polk Barrow Gwinnett Cobb Paulding Madison Oglethorpe ck da le Fulton Lincoln Wilkes Walton DeKalb Douglas Elbert Clarke Oconee Haralson Hart Forsyth Ro Georgia Total Agricultural Production Value $14.2 Billion Rabun Union Murray Clayton Carroll Morgan Newton Fayette Taliaferro Columbia McDuffie Warren Coweta Heard Pike Hancock Lamar Meriwether Richmond Putnam Jasper Butts Spalding Troup Greene Henry Glascock Baldwin Burke Jefferson Jones Monroe Washington Upson Bibb Wilkinson Jenkins Crawford Talbot Twiggs Emanuel Peach Taylor ch ee Muscogee Bulloch Pulaski Schley Dodge Dooly Wheeler Stewart Webster Sumter Evans Toombs Bryan Tattnall Chatham Wilcox Telfair Crisp Quitman $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $475 Liberty Randolph Terrell Lee Jeff Davis Ben Hill Long Appling Turner Irwin Clay Dougherty Calhoun Worth Coffee Wayne Bacon McIntosh Tift Early Pierce Baker Berrien Mitchell Miller Atkinson Brantley Colquitt Cook Glynn Ware Lanier Seminole Decatur Grady Clinch Thomas Brooks Lowndes Echols 2010 Farm Gate Value by County in Millions of Dollars Effingham ery oo Candler Treutlen Macon Ch at ta h Laurens Bleckley Houston Marion Screven Johnson Montgom Harris Camden Charlton What We Know about Lowndes County 2010 Farm Gate Value in Lowndes Co. was $59.5 million. Adding $17.6 million of landscape services increased the total agricultural production value to $77.1 million. The highest value commodity group was row and forage crops, representing 26.5% of the total agricultural production value. Lowndes County 2010 Agricultural Production Value Poultry 0% Other 9.2% Row and Forage Crops 26.5% Livestock 14.9% Forestry 6.9% Fruits and Nuts 17.5% Horticulture 11.5% Vegetables 13.3% What We Did County Economy Modeled The Center for Agribusiness and Economic Development performed an analysis of the county’s economy, focusing on the role of food and fiber. 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) What is the total (direct and indirect) Impact of food and fiber production and directly related industries? Lowndes County Economy Agriculture OUTPUT Output in $ Percent Agriculture 77,148,481 1.03% Mining 80,526,471 1.07% 367,246,218 4.89% 1,600,248,864 21.32% Trans-Utilities-Info 582,772,187 7.77% Trade 651,552,162 8.68% Finance-Ins-RE 999,178,611 13.31% 1,497,679,614 19.96% Construction Manufacturing Services Govt. & non-NAICS 1,647,885,793 21.96% Total County Economic Output = $7,504.2 million Lowndes County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Agriculture + Direct Percent 969,498,026 12.92% 80,526,471 1.07% Construction 367,246,218 4.89% Manufacturing 707,899,319 9.43% Trans-Utilities-Info 582,772,187 7.77% Trade 651,552,162 8.68% Finance-Ins-Real Est 999,178,611 13.31% 1,497,679,614 19.96% Mining Services Govt. & non-NAICS 1,647,885,793 21.96% Total County Economic Output = $ 7,504.2 million Lowndes County Employment Total Jobs = 65,121 Construction 3029 4.7% Manufacturing 2,265 3.5% Trans-UtilitiesInfo 2,809 4.3% Trade 9,243 14.2% Mining 493 0.8% Finance-Ins- Real Est 3934 6.0% Professional Services 8,391 12.9% AG + Directly Related 2,724 4.2% State & Federal Government 11,274 17.3% Public Education 6,410 9.8% Primary data source: Center for Agribusiness & Economic Development, UGA Other Services 14,550 22.3% An Economic Snapshot of Lowndes County How much of Lowndes County’s total economic output comes from food and fiber production? AG value alone of $77.1 million consisting of Farm Gate Value and landscape services comprises 1.5% of the county’s economy. AG plus directly related businesses (ex. Ag Support Services, Processing, etc.) comprise 16.5% of the county’s economy. What is the Impact? What is the total (direct and indirect) impact of food and fiber production and directly related industries? 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 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 Lowndes County Agriculture IMPACT Direct $ Agriculture Indirect $ 77,148,481 0 Mining 0 1,347 Construction 0 687,970 Manufacturing 0 1,295,162 Trans-Utilities-Info 0 4,948,170 Trade 0 4,873,831 Finance-Ins-Real Est 0 14,665,222 Services 0 11,576,815 Govt. & non-NAICS 0 1,074,293 Total 77,148,481 39,122,810 Total Impact of Production AG = $116.3 million 1.5% of total economy Lowndes County Production Agriculture + Directly Related Businesses IMPACT Direct $ Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-Real Est Services Govt. & non-NAICS Total 969,498,026 0 0 0 0 0 0 0 0 969,498,026 Indirect $ 0 99,826 7,409,843 3,867,843 80,640,921 38,130,126 58,679,554 73,366,163 6,287,990 268,482,265 Total Impact of AG + Directly Related = $1,238.0 million 16.5% of total economy Lowndes County Production Agriculture + Directly Related Industries Employment IMPACT Direct Agriculture + Direct Indirect 1,048 0 Mining 0 0 Construction 0 6 Manufacturing 0 2 Trans-Utilities-Info 0 21 Trade 0 70 Finance-Ins-Real Est 0 57 Services 0 183 Govt. & non-NAICS 0 4 Total Impact of AG + Directly Related Employment = 4,841 Jobs 7.4% of total employment What These Numbers Mean: A Brief Explanation Direct impact is $969.5 million. This includes food and fiber production, processing and directly related manufacturing. Indirect impact from related sectors is $268.5 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) 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. Local stores also hire employees to assist farmers. They take home wages and buy groceries at the local store which increases demand there. Lowndes County Food and Fiber Impact Conclusions The total impact of food and fiber production, processing and direct manufacturing is $1,238.0 million. The total county output is $7,504.2 million. Thus, food and fiber (directly and indirectly) account for 16.5% of the total county output, considering the multiplier effects. Contact Information Prepared by: Sharon P. Kane and Karen Stubbs Center for Agribusiness & Economic Development Dr. Kent Wolfe, Director “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 “Resources”, then “Georgia Statistics System” Ag Profile Report AP#12-16A