The Economic Importance of Food and Fiber A Spotlight on Oconee County, Georgia Prepared for Oconee County Cooperative Extension May 2013 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Trends in Oconee County: Number of Farms Number of Farms, Oconee County 500 400 300 200 100 0 1978 1982 1987 1992 Source: 1978-2007 (quinquennial) Censuses of Agriculture 1997 2002 2007 Trends in Oconee County: Land in Farms, Harvested Cropland & Farms by Size Land in Farms & Harvested Cropland Oconee County Percent of Farms by Size, 2007 Oconee Co. 45 60000 Land in farms Harvested cropland Georgia 40 35 50000 30 40000 25 30000 20 15 20000 10 10000 5 0 0 1992 1997 2002 2007 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 Plus Directly Related Sectors as % of Total Economic Output Catoosa Dade Towns Fannin 0 - 10% 10 - 20% 20 - 30% 30 - 45% 45 - 58% Rabun Union Murray Whitfield Walker Gilmer White b Ha Lumpkin Gordon Chattooga er sh am Stephens Pickens Dawson Cherokee Bartow Franklin Banks Hall Floyd Jackson Polk Barrow Gwinnett Cobb Paulding Madison Oglethorpe Ro ck da le Fulton Lincoln Wilkes Walton DeKalb Douglas Elbert Clarke Oconee Haralson Hart Forsyth Clayton Carroll Morgan Newton Taliaferro Columbia McDuffie Fayette 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 Effingham ery oo Candler Treutlen Macon Ch at ta h Laurens Bleckley Houston Marion Screven Johnson Pulaski Schley Dodge Dooly Wheeler Stewart Webster Sumter Montgom Harris Evans Toombs Bryan Tattnall Chatham Wilcox Telfair Crisp Quitman 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 Updated 1/16/13 Camden Charlton Agriculture in Georgia Georgia's 2011 Farm Gate Value was $13.0 billion. Adding the value of $2.1 billion of landscape services increased the total agricultural production value to $15.1 billion. Total food and fiber production and directly related businesses account for a $71.1 billion output impact on Georgia's $763.6 billion economy. What We Know about Oconee County 2011 Farm Gate Value in Oconee Co. was $123.2 million. Adding $7.7 million of landscape services increased the total agricultural production value to $130.9 million. The highest value commodity group was Poultry and Eggs, representing 73.6% of the total agricultural production value. Oconee County 2011 Agricultural Production Value Other 0.7% Row-Forage Fruits-Nuts Crops 0.5% 4.2% Vegetables 0.0% Ornamental Horticulture 11.7% Forestry 0.4% Poultry-Egg 73.6% Livestock 8.9% 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? Oconee County Economy Agriculture OUTPUT Output in $ Agriculture Percent 130,937,105 9.56% 5,046,201 0.37% Construction 70,191,728 5.12% Manufacturing 120,586,835 8.80% 40,514,929 2.96% Trade 143,973,233 10.51% Finance-Ins-RE 356,049,817 25.99% Services 383,525,034 28.00% Mining Trans-Utilities-Info Govt. & non-NAICS 118,997,019 Total County Economic Output = $1,369.8 million 8.69% Oconee County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Agriculture + Direct Percent 140,835,241 10.28% 5,046,201 0.37% Construction 70,191,728 5.12% Manufacturing 110,688,698 8.08% 40,514,929 2.96% Trade 143,973,233 10.51% Finance-Ins-Real Est 356,049,817 25.99% Services 383,525,034 28.00% Mining Trans-Utilities-Info Govt. & non-NAICS 118,997,019 Total County Economic Output = $1,369.8 million 8.69% Oconee County Employment Total Jobs = 12,147 Trans-UtilitiesConstruction Manufacturing Info 268 774 405 2.2% 3.3% Mining 6.4% 15 0.1% Trade 1,764 14.5% Finance-Ins- Real Est 1198 9.9% AG + Directly Related 590 4.9% State & Federal Government 1,042 8.6% Public Education 677 5.6% Professional Services 2,727 22.4% Other Services 2,688 22.1% Primary data source: Center for Agribusiness & Economic Development, UGA An Economic Snapshot of Oconee County How much of Oconee County’s total economic output comes from food and fiber production? AG value alone of $130.9 million consisting of Farm Gate Value and landscape services comprises 9.6% of the county’s economy. AG plus directly related businesses (ex. Ag Support Services, Processing, etc.) comprise 10.3% 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 Oconee County Agriculture IMPACT Direct $ Agriculture Indirect $ 130,937,105 0 Mining 0 124,754 Construction 0 1,233,896 Manufacturing 0 101,921 Trans-Utilities-Info 0 2,992,775 Trade 0 3,415,167 Finance-Ins-Real Est 0 8,600,086 Services 0 6,537,176 Govt. & non-NAICS 0 595,099 Total 130,937,105 23,600,875 Total Impact of Production AG = $154.5 million 11.3% of total economy Oconee 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 Indirect $ 140,835,241 0 0 0 0 0 0 0 0 140,835,241 Total Impact of AG + Directly Related = $166.5 million 12.2% of total economy 0 128,023 1,287,908 112,531 3,114,969 3,781,183 9,301,680 7,327,006 630,053 25,683,354 Oconee County Production Agriculture + Directly Related Industries Employment IMPACT Direct Agriculture + Direct Indirect 590 0 Mining 0 0 Construction 0 16 Manufacturing 0 0 Trans-Utilities-Info 0 19 Trade 0 41 Finance-Ins-Real Est 0 38 Services 0 108 Govt. & non-NAICS 0 4 Total Impact of AG + Directly Related Employment = 816 Jobs 6.7% of total employment What These Numbers Mean: A Brief Explanation Direct impact is $140.8 million. This includes food and fiber production, processing and directly related manufacturing. Indirect impact from related sectors is $25.7 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. Oconee County Food and Fiber Impact Conclusions The total impact of food and fiber production, processing and direct manufacturing is $166.5 million. The total county output is $1,369.8 million. Thus, food and fiber (directly and indirectly) account for 12.2% of the total county output, considering the multiplier effects. Contact Information Prepared by: Sharon P. Kane, Public Service Associate, Economist Karen Stubbs, Research Professional 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 #13-08A