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