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

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The Economic Importance
of Food and Fiber
A Spotlight on Macon County, Georgia
Prepared for
Macon County Cooperative Extension
July, 2012
by:
The Center for Agribusiness
and Economic Development
College of Agricultural
and Environmental Sciences
The University of Georgia
Trends in Macon County:
Number of Farms
Number of Farms, Macon County
400
300
200
100
0
1978
1982
1987
1992
Source: 1978-2007 (quinquennial) Censuses of Agriculture
1997
2002
Trends in Macon County:
Land in Farms, Harvested Cropland
& Farms by Size
Land in Farms & Harvested Cropland
Macon County
Percent of Farms by Size, 2007
Macon Co.
40
140000
Land in farms
Georgia
Harvested cropland
35
120000
30
100000
25
80000
20
60000
15
40000
10
20000
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 Macon County
 2010 Farm Gate Value in Macon Co.
was $248.5 million. Adding
$618,674 of landscape services
increased the total agricultural
production value to $249.1 million.
 The highest value commodity group
was poultry and egg , representing
47.6% of the total agricultural
production value.
Macon County
2010 Agricultural Production Value
Other Vegetables
Fruits-Nuts1%
3%
Veges
8%
Ornamental
Horticulture
4%
Forestry
1%
Livestock
19%
Poultry-Egg
48%
Row-Forage
crops
16%
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?
Macon County Economy
Agriculture OUTPUT
Output in $
Agriculture
Percent
249,094,616
29.70%
3,144,623
0.37%
Construction
23,149,327
2.76%
Manufacturing
322,226,956
38.42%
Trans-Utilities-Info
22,940,026
2.74%
Trade
36,500,738
4.35%
Finance-Ins-RE
60,419,048
7.20%
Services
68,137,223
8.13%
Mining
Govt. & non-NAICS
52,983,284
Total County Economic Output = $838.6 million
6.32%
Macon County Economy
Agriculture + Directly Related Businesses OUTPUT
Output in $
Agriculture + Direct
Percent
526,732,285
62.81%
3,144,623
0.37%
Construction
23,149,327
2.76%
Manufacturing
44,589,287
5.32%
Trans-Utilities-Info
22,940,026
2.74%
Trade
36,500,738
4.35%
Finance-Ins-Real Est
60,419,048
7.20%
Services
68,137,223
8.13%
Mining
Govt. & non-NAICS
52,983,284
Total County Economic Output = $ 838.6 million
6.32%
Macon County Employment
Total Jobs = 5,424
Mining
22
0.4%
AG + Directly
Related
1,750
32.3%
Construction
228
Manufacturing
4.2%
103
1.9%
Trans-UtilitiesInfo
146
2.7%
Trade
541
10.0%
State & Federal
Government
822
15.2%
Public Education
223
4.1%
Finance-Ins- Real
Est
204
3.8%
Other Services
776
14.3%
Primary data source: Center for Agribusiness & Economic Development, UGA
Professional
Services
610
11.2%
An Economic Snapshot
of Macon County
 How much of Macon County’s total
economic output comes from food and
fiber production?
 AG value alone of $249.1 million
consisting of Farm Gate Value and
landscape services comprises 29.7% of
the county’s economy.
 AG plus directly related businesses (ex.
Ag Support Services, Processing, etc.)
comprise 62.8% 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
Macon County
Agriculture IMPACT
Direct $
Agriculture
Indirect $
249,094,616
0
Mining
0
297
Construction
0
845,214
Manufacturing
0
20,227,993
Trans-Utilities-Info
0
5,843,985
Trade
0
8,455,949
Finance-Ins-Real Est
0
16,488,322
Services
0
9,889,167
Govt. & non-NAICS
0
1,459,359
Total
249,094,616
63,210,285
Total Impact of Production AG = $312.3 million
37.2% of total economy
Macon 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
526,732,285
0
0
0
0
0
0
0
0
526,732,285
Indirect $
0
606
2,225,168
21,249,931
14,506,735
16,523,278
28,031,622
20,083,789
3,082,852
105,703,983
Total Impact of AG + Directly Related = $632.4 million
75.4 % of total economy
Macon County
Production Agriculture + Directly Related Industries
Employment IMPACT
Direct
Agriculture + Direct
Indirect
1,750
0
Mining
0
0
Construction
0
25
Manufacturing
0
27
Trans-Utilities-Info
0
98
Trade
0
212
Finance-Ins-Real Est
0
95
Services
0
423
Govt. & non-NAICS
0
14
Total Impact of AG + Directly Related Employment = 2,644 Jobs
48.7% of total employment
What These Numbers Mean:
A Brief Explanation
 Direct impact is $526.7 million. This
includes food and fiber production,
processing and directly related
manufacturing.
 Indirect impact from the related sectors
is $105.7 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.
Macon County Food and Fiber
Impact Conclusions
 The total impact of food and fiber
production, processing and direct
manufacturing is $632.4 million.
 The total county output is $838.6
million.
 Thus, food and fiber (directly and
indirectly) account for 75.4% 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#12-13A
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