The Economic Importance of Food and Fiber A Spotlight on Hart County, Georgia Prepared for Hart County Cooperative Extension January, 2010 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Hart County 2015 Trend CAED 25,463 24,617 24,278 22,997 19,712 18,585 15,814 15,229 14,495 15,512 15,174 2010 Trend CAED 2008 Est. 2000 1990 1980 1970 1960 1950 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 30,000 Population Change: 2000-2008 LOSS Gain < US Gain < GA but > US Gain > GA Hart Co. = 5.6% Avg. GA County = 11.2% GA = 18.3% US = 8.0% Primary data source: U.S. Census Bureau (3/09) % of Land in Cropland & Timberland 14 - 64% 64 - 75% 75 - 83% 83 - 92% 92 - 99% Hart Co. = 58% GA Avg. Co. = 76% GA Total = 78% GA Metro = 68% GA Nonmetro = 83% Primary data sources: U.S. Census of Agriculture, 2007 USDA Forest Service, 2007 Graphic by Center for Agribusiness & Economic Development, UGA Components of 2008 Property Tax Gross Digest Hart County Residential 57.6% Heavy Equipment 0.01% Ag-PreferentialEnviron-Conserv 20.1% Timber * 0.04% Mobile Home 0.8% Motor Vehicle 5.7% Commercial 6.7% Industrial 6.3% 40% Assessment Value of Property Public Utility Gross Digest = $1,126,000,711 2.8% Homestead & Property Exemptions = $141,100,665 Primary data source: GA Dept. of Revenue Net M&O Digest = $984,900,046 Value of exempt property = $45,348,374 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2008 County % Resi- % Agri- % Comdential cultural mercial % Mo% % % UtilMotor bile Timity Veh Home ber HART 57.6 20.1 6.3 2.8 5.7 0.8 0.04 ELBERT 38.9 29.0 13.7 5.6 3.6 7.7 1.1 0.39 MADISON 44.0 34.7 1.6 5.5 8.1 1.4 0.12 FRANKLIN 32.4 38.2 15.3 3.7 2.3 7.1 1.1 0.03 STEPHENS 57.0 13.7 11.7 3.5 6.7 1.0 0.02 BANKS 38.1 34.9 12.6 3.1 3.1 7.0 1.2 0.09 Avg. GA Co. 42.3 4.8 7.0 6.4 24.6 6.7 % Industrial 4.6 12.6 6.9 Primary data source: GA Dept. of Revenue (preliminary 5/15/09—Fulton Co. digest not verified) 1.0 0.72 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 2008 Farm Gate Value was $11.9 billion. Adding the value of landscape services increased the total agricultural production value to $14 billion. ¾ Total food and fiber production and directly related businesses account for a $65 billion output impact on Georgia's $787 billion economy. Production Agriculture: 2008 Georgia Total Agricultural Production Value $11.9 Billion Landscape services 15.4% Poultry & Eggs 40.1% Fruits & Nuts 1.9% Forestry & Products 4.1% Other Income 4.4% Ornamental Horticulture 4.9% Vegetables 6.0% Livestock & Aqua-culture 9.0% Row & Forage Crops 14.3% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $442 2008 Farm Gate Value by County in Millions of Dollars What We Know about Hart County ¾ 2008 Farm Gate Value in Hart Co. was $284 million. Adding $1.5 million of landscape services increased the total agricultural production value to $285.5 million. ¾ The highest value commodity group was poultry/eggs, representing 88% of the total agricultural production value. Hart County 2008 Agricultural Production Value 2008 Agricultural Production Veges-Fruits- Forestry Nuts 0.2% Livestock0.2% Orn Hort Aquaculture 3.7% 5.6% Row-Forage crops 1.7% Other 0.3% Landscape services 0.5% 2008 Top Farm Gate Commodities Dairy Field Nursery 1.5% 1.8% Beef Breeder Pullet2.3% Container Pork Nursery Greenhouse 1.3% 0.8% 1.1% Hay Rest of 0.5% Commodities Unit 2.8% Poultry-Eggs 87.7% Layers 26.3% Total AG Value = $285.5 million 2.4% Broilers 59.1% Trends in Hart County: Number of Farms & Average Farm Size Number of Farms, Hart County Average Farm Size 3000 300 Hart Co. Georgia 2500 200 Acres 2000 1500 1000 212 107 100 657 500 Source: 1945-2007 (quinquennial) Censuses of Agriculture 07 02 20 20 97 19 92 87 19 19 82 78 19 19 74 19 69 64 19 19 59 54 19 19 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997 2002 2007 19 45 0 49 0 Trends in Hart County: Land in Farms, Harvested Cropland & Farms by Size Land in farms 160 140 120 100 80 60 40 20 0 Percent of Farms by Size, 2007 50 Hart Co. Harvested cropland Georgia 40 30 70.4 07 02 20 97 20 19 92 87 19 82 19 78 19 74 19 69 19 64 19 59 19 19 54 19 19 19 50 17.4 45 Acres X 1,000 Land in Farms & Harvested Cropland Hart County 20 10 0 1-9 acres Source: 1945-2007 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 500-999 acres acres 1000+ acres Trends in Hart County Number of Farms by Commodity 1997 2002 2007 400 350 338 286 300 250 200 150 100 50 53 77 9 0 Beef Cows Milk Cows Hay Source: 1997-2007 (quinquennial) Censuses of Agriculture Layers Broilers How Do We Compare ? Georgia, Hart and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $5,000 $4,000 $4,057 $3,000 $4,628 $4,393 $4,034 $2,000 $1,798 $1,176 $1,000 $432 $249 $223 $403 $442 $0 ia g r o Ge rt Ha rt on ns lin e s e k i b n d El ph e t Fra Ma S Sources: 2007 Census of Agriculture and 2008 Farm Gate Value Report $340 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? Hart County Economy Agriculture OUTPUT Output in $ Millions Percent Agriculture 285.524 21.7 Mining 11.581 0.9 Construction 62.414 4.7 Manufacturing 455.014 34.6 Trans-Utilities-Info 99.444 7.6 Trade 95.761 7.3 Finance-Ins-RE 89.715 6.8 Services 147.551 11.2 Govt + non NAICS 69.846 5.3 Total County Economic Output = $1.3 billion Hart County Economy Agriculture + Directly Related Businesses OUTPUT Agriculture + Direct Mining Output in $ Millions Percent 364.499 11.581 27.7 0.9 62.414 Construction 4.7 376.038 Manufacturing 28.6 99.444 Trans-Utilities-Info 7.6 95.761 Trade 7.3 89.715 Finance-Ins-Real Est 6.8 147.551 Services 11.2 69.846 Govt + non NAICS 5.3 Total County Economic Output = $1.3 billion Hart County Employment Total Jobs = 8,664 Construction 562 Mining 6.5% 30 0.3% AG + Directly Related 1,079 12.5% Manufacturing 1,183 Trans-Utilities13.7% Info 311 3.6% Trade 1,335 15.4% State & Federal Government 579 6.7% Public Education 723 8.3% Finance-Ins-Real Est 214 2.5% Other Services 1,668 19.3% Professional Services 979 11.3% Primary data source: Center for Agribusiness & Economic Development, UGA An Economic Snapshot of Hart County ¾ How much of Hart County’s total economic output comes from food and fiber production? ¾ AG value alone of $285.5 million consisting of Farm Gate Value and landscape services comprises 21.7% of the county’s economy. ¾ AG plus directly related businesses (ex. animal slaughtering, logging, sawmills, etc.) comprise 27.7% 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% Hart Co. 27.7% 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 Hart County Agriculture IMPACT Direct $ Millions Indirect $ Millions 285.524 0 Agriculture 0 0.0001 Mining 0 0.831 Construction 0 0.081 Manufacturing 0 7.424 Trans-Utilities-Info 0 8.810 Trade 0 6.214 Finance-Ins-Real Est 0 6.020 Services 0 1.055 Govt + non NAICS 285.524 30.436 Total Total Impact of Production AG = $316 million 24% of total economy Hart County Production Agriculture + Directly Related Businesses IMPACT Direct $ Millions Indirect $ Millions 364.499 0 Agriculture + Direct 0 0.0001 Mining 0 1.041 Construction 0 0.124 Manufacturing 0 10.054 Trans-Utilities-Info 0 11.507 Trade 0 8.077 Finance-Ins-Real Est 0 8.571 Services 0 1.420 Govt + non NAICS 364.499 40.795 Total Total Impact of AG + Directly Related = $405.3 million 30.8% of total economy Hart County Production Agriculture + Directly Related Industries Employment IMPACT Direct 1,079 Indirect 0 Mining 0 0 Construction 0 13 Manufacturing 0 1 Trans-Utilities-Info 0 34 Trade 0 117 Finance-Ins-Real Est 0 20 Services 0 145 Agriculture + Direct 1,079 337 Govt + non NAICS Total Impact of AG + Directly Related Employment = 1,416 Jobs 16.3% of total employment What These Numbers Mean: A Brief Explanation ¾ Direct impact is $365 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $11.5 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) 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. Hart County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $405.3 million. ¾ The total county output is $1.3 billion. ¾ Thus, food and fiber (directly and indirectly) account for 30.8% of the total county output. Food and Fiber Production and Directly Related Manufacturing IMPACT as % of Total Output 0 - 10% 10 - 25% 25 - 40% 40 - 60% 60 - 84% Hart Co. 30.8% Contact Information Prepared by: Sue Boatright and Sharon Kane 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 #10-03A January, 2010