The Economic Importance of Food and Fiber A Spotlight on Elbert County, Georgia Prepared for Elbert 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 Elbert County 2015 Trend CAED 20,548 20,509 20,494 20,511 2010 Trend CAED 2008 Est. 2000 18,949 18,758 1990 1980 17,262 17,835 1970 1960 18,585 1950 19,618 1940 18,485 1930 15,000 16,000 17,000 18,000 19,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development). 20,000 21,000 Population Change: 2000-2008 LOSS Gain < US Gain < GA but > US Gain > GA Elbert Co. = -0.1% Avg. GA Co. = 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% Elbert Co. = 65% 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 Elbert County Residential 38.9% Ag-PreferentialEnviron-Conserv 29.0% Heavy Equipment 0.002% Timber * 0.4% Mobile Home 1.1% Public Utility 3.6% Motor Vehicle 7.7% Primary data source: GA Dept. of Revenue Commercial 13.7% Industrial 5.6% 40% Assessment Value of Property Gross Digest = $639,833,568 Homestead & Property Exemptions = $98,680,662 Net M&O Digest = $541,152,906 Value of exempt property = $65,472,198 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2008 County % Resi- % Agri- % Comdential cultural mercial % Industrial % Mo% % % UtilMotor bile Timity Veh Home ber ELBERT 38.9 29.0 13.7 5.6 3.6 7.7 1.1 0.39 HART 57.6 20.1 6.7 6.3 2.8 5.7 0.8 0.04 LINCOLN 61.0 23.2 4.8 0.4 2.2 6.3 1.2 0.87 MADISON 44.0 34.7 4.6 1.6 5.5 8.1 1.4 0.12 WILKES 25.3 48.6 8.9 3.8 2.9 6.3 1.3 2.74 OGLETHORPE 39.3 44.9 4.2 0.6 2.3 6.9 0.8 0.88 Avg. GA Co. 42.3 12.6 6.9 4.8 7.0 24.6 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 $63 billion output impact on Georgia's $771 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 Elbert County ¾ 2008 Farm Gate Value in Elbert Co. was $113.1 million. Adding $76 thousand of landscape services increased the total agricultural production value to $113.2 million. ¾ The highest value commodity group was poultry & eggs, representing 86% of the total agricultural production value. Elbert County 2008 Agricultural Production Value 2008 Agricultural Production Forestry 1.3% LivestockAquaculture 5.6% Furits-NutsOrn Hort Other Veges 3.1% 1.1%Landscape 0.1% services 0.1% Row-Forage crops 2.7% 2008 Top Farm Gate Commodities Hay 1.2% Timber Horses 1.3% 1.6% Greenhouse 2.7% Beef 3.4% Layers 13.7% Hunting Cotton leases Dairy 0.4% 0.5% 0.4% Poultry-Eggs 86.1% Total AG Value = $113.2 million Rest of Commodities 2.4% Broilers 72.4% Trends in Elbert County: Number of Farms & Average Farm Size Number of Farms, Elbert County Average Farm Size 2500 300 Elbert Co. Georgia 2000 212 A c re s 200 1500 1000 124 100 507 500 Source: 1945-2007 (quinquennial) Censuses of Agriculture 07 02 20 20 97 92 19 19 87 82 19 78 19 19 74 69 19 19 64 59 19 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 Elbert County: Land in Farms, Harvested Cropland & Farms by Size Land in Farms & Harvested Cropland Elbert County Land in farms Acres X 1,000 200 Percent of Farms by Size, 2007 50 Elbert Co. Harvested cropland Georgia 40 150 30 100 62.9 20 50 10.7 10 07 02 20 97 20 92 19 87 19 82 19 78 19 19 74 69 19 64 19 19 59 54 19 50 19 19 19 45 0 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 How Do We Compare ? Georgia, Elbert and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $5,000 $4,000 $3,000 $886 $2,000 $1,000 $4,057 $4,034 $1,798 $1,176 $249 $432 $223 $223 $403 $0 Ge ia g r o rt e El b rt a H M is o d a n lke i W Sources: 2007 Census of Agriculture and 2008 Farm Gate Value Report s 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? Elbert County Economy Agriculture OUTPUT Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Output $ Percent 113,184,147 57,922,246 44,455,846 435,823,149 40,085,109 115,644,548 93,698,859 106,006,312 98,494,204 10.24% 5.24% 4.02% 39.43% 3.63% 10.46% 8.48% 9.59% 8.91% Total County Economic Output = $1.1 billion Elbert County Economy Agriculture + Directly Related Businesses OUTPUT Output $ Agriculture + Direct Percent 211,668,435 19.15% Mining 57,922,246 5.24% Construction 4.02% 44,455,846 Manufacturing 337,338,861 30.52% Trans-Utilities-Info 40,085,109 3.63% Trade 115,644,548 10.46% Finance-Ins-Real Est 93,698,859 8.48% Services 106,006,312 9.59% Government 98,494,204 8.91% Total County Economic Output = $1.1 billion Elbert County Employment Total Jobs = 8,971 AG + Directly Related 1,093 12.2% Construction 415 4.6% Mining 144 1.6% Manufacturing 1,883 21.0% Trans-UtilitiesInfo 272 3.0% State & Federal Government 769 8.6% Public Education 792 8.8% Trade 1,415 15.8% Other Services 1,199 13.4% Professional Services 740 8.2% Primary data source: Center for Agribusiness & Economic Development, UGA Finance-InsReal Est 251 2.8% An Economic Snapshot of Elbert County ¾ How much of Elbert County’s total economic output comes from food and fiber production? ¾ AG value alone of $113.2 million consisting of Farm Gate Value and landscape services comprises 10.2% of the county’s economy. ¾ AG plus directly related businesses (ex. Poultry processing, sawmills, etc.) comprise 19.2% 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% Elbert Co. 19.2% 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 Elbert County Agriculture IMPACT Direct $ Indirect $ 113,184,147 0 Mining 0 738 Construction 0 200,342 Manufacturing 0 63,003 Trans-Utilities-Info 0 1,568,650 Trade 0 5,487,155 Finance-Ins-Real Est 0 2,875,125 Services 0 2,154,348 Government 0 1,307,873 Agriculture 113,184,147 13,657,234 Total Total Impact of Production AG = $126.8 million 11.5% of total economy Elbert County Production Agriculture + Directly Related Businesses IMPACT Direct $ Indirect $ 211,668,435 0 Mining 0 901 Construction 0 364,821 Manufacturing 0 120,930 Trans-Utilities-Info 0 3,588,089 Trade 0 10,502,204 Finance-Ins-Real Est 0 6,308,267 Services 0 5,999,329 Government 0 2,759,606 211,668,435 29,644,147 Agriculture + Direct Total Total Impact of AG + Directly Related = $241.3 million 21.8% of total economy Elbert County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 1,093 0 Mining 0 0 Construction 0 5 Manufacturing 0 1 Trans-Utilities-Info 0 27 Trade 0 112 Finance-Ins-Real Est 0 17 Services 0 106 Agriculture + Direct 0 10 Government Total Impact of AG + Directly Related Employment = 1,372 Jobs 15.3% of total employment What These Numbers Mean: A Brief Explanation ¾ Direct impact is $211.7 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $10.5 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. Elbert County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $241.3 million. ¾ The total county output is $1.1 billion. ¾ Thus, food and fiber (directly and indirectly) account for 21.8% 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% Elbert Co. 21.8% 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 #10-04A January, 2010