The Economic Importance of Food and Fiber A Spotlight on Hall County, Georgia Prepared for: Hall County Extension Service Prepared and Presented by: Dr. John C. McKissick, Coordinator The Center for Agribusiness and Economic Development College of Agriculture and Environmental Sciences The University of Georgia Population Change: 1990-2000 LOSS 0 - 13.2% 13.2 - 26.4% 26.4 – 52.8% 52.8 - 123.2% GA = 26.4% US = 13.2% Hall Co. 45.9% Primary data source: U.S. Census Bureau Total Population Hall County 189,691 165,232 145,664 139,277 2010 Proj. 2005 Proj. 2001 Est. 2000 95,428 75,649 59,405 49,739 40,113 34,822 30,313 1990 1980 1970 1960 1950 1940 1930 0 50,000 100,000 150,000 Primary data sources: U.S. Census Bureau, decennial censuses and annual estimate GA Dept. of Labor, projections 200,000 % of Land in Cropland, Pastureland & Forestland 22.8 – 74.4% 74.4 – 83.2% 83.2 – 88.1% 88.1 – 92.6% 92.6 – 99.6% GA Total = 83.3% GA Avg. Co. = 82.5% 60% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2001 Property Tax Digest Hall County Timber * 0.0% Mobile Home 0.8% Motor Vehicle 9.7% Residential 50.5% Pub Utility 2.1% Industrial 14.1% Commercial 17.8% Ag/Pref/Envir 5.0% 40% Assessment Value Gross Digest = $3,966,744,190 Homestead & Property Exemptions = $243,603,601 Net M&O Digest = $3,723,170,589 Primary data source: GA Dept. of Revenue Value of Exempt Property = $280,599,184 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2001 County % Residential % Agricultural % Commercial % Industrial % Motor Vehicle % Other BANKS 31.8 32.8 15.2 6.6 8.6 5.1 BARROW 44.6 17.4 14.2 9.9 10.0 3.8 DAWSON 51.3 18.4 16.1 0.3 11.4 2.4 FORSYTH 62.2 3.1 12.5 11.9 8.6 1.7 GWINNETT 48.3 0.8 30.6 10.2 8.4 1.6 HABERSHAM 49.8 14.3 13.4 6.9 9.4 6.1 HALL 50.5 5.0 17.8 14.1 9.7 2.9 JACKSON 36.7 20.1 8.6 19.0 7.8 7.9 LUMPKIN 34.3 31.7 13.6 5.0 9.7 5.7 WHITE 49.4 23.8 12.7 0.8 9.1 4.3 Avg. GA Co. 47.0 5.9 24.4 8.7 8.7 5.4 Primary data source: GA Dept. of Revenue Expenditures per $1 in Revenue by Land Use (including schools) $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 Appling Cherokee Dooly Jones Residential 2.26 1.6 2.07 1.24 Comm/Ind 0.17 0.12 0.5 0.65 Farm/Forest 0.36 0.2 0.27 0.35 Dorfman et al., Department of Ag & Applied Economics, January 2002. Agriculture in Georgia - 2003 ¾ Georgia's value of agricultural production, comprised of Farm Gate value plus ag/landscape services, accounted for $11.2 billion. ¾ Food and fiber production and directly related businesses accounted for $29.5 billion of Georgia's $544 billion economy. ¾ Food/fiber production, processing and food marketing accounts for 16% of GA output, 15% of employment and 12% of value added. Total Farm Gate Value: 2003 $9.859 billion 2002 = $8.826 billion Broilers 33.9% Cotton 8.2% Rest of Commodities 29.5% Timber 5.6% Container Nursery 1.7% Dairy 2.4% $0 - $20,000,000 $20,000,000 - $45,000,000 $45,000,000 - $80,000,000 $80,000,000 - $125,000,000 $125,000,000 - $271,000,000 Beef 3.7% Greenhouse 2.6% Peanuts 3.7% Eggs 4.9% Horses 3.8% What We Know about Hall County ¾ Agricultural production in Hall County generated $241.1 million in 2001. ¾ The highest value commodity is poultry & eggs, accounting for 93.1% of the total farm gate value. Hall County 2001 Farm Gate 2001 Top Ten Commodities Hall County 2001 2001 Farm Gate Value Hall County Livestock 5.1% LayersHatch Egg 2.4% Other 1.8% Dairy 1.7% LayersTable Egg 6.6% PoultryEggs 93.1% Breeder Pullet Unit 7.0% HorsesBBT 1.1% Beef Beef Cows Stockers Hay 1.5% 0.5% 0.5% Others 1.5% BroilerGrower 9.1% Total AG Value = $241,106,762 BroilerIntegrator 67.9% Trends in Hall County: Number of Farms and Farm Size Number of Farms, Hall County Average Farm Size 300 2500 250 2000 200 A cres 3000 1500 150 1000 100 500 50 0 0 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997 Source: 1945 - Hall Co. Georgia 1997 (quinquennial) Censuses of Agriculture 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997 Trends in Hall County: Land in Farms, Harvested Cropland & Farms by Size Land in Farms & Harvested Cropland Hall County Land in Farms 50 Hall Co. Georgia Harvested Cropland 40 200 30 150 97 1-9 acres 19 92 87 19 82 19 19 78 19 19 19 19 19 19 19 19 Source: 1945 - 74 0 69 0 64 10 59 50 54 20 50 100 45 A cres X 1,000 250 Percent of Farms by Size, 1997 1997 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 acres 500-999 acres 1000+ acres Trends in Hall County: Commodities Number of Farms by Commodity 600 1987 1992 1997 500 400 300 200 100 0 Beef Cows Source: 1987 - Milk Cows Cattle & Calves Sold Layers & Pullets 1997 (quinquennial) Censuses of Agriculture Broilers & Other Hay How Do We Compare ? Georgia, Hall and Surrounding Counties Farm Gate Value $7,000 $6,000 $5,000 $6,805 $4,000 $4,347 $3,000 $3,711 $2,964 $2,637 $2,472 $2,139 $2,000 $817 $1,000 $216 $333 $284 $152 $315 $275 $395 $523 $0 rgi o Ge a ll Ha cks a J on F th y s or pk m Lu in $ Per Farm (thousands) ite h W s am nk h a s B r be a H $ Per Acre Sources: 1997 Census of Agriculture and 2001 Farm Gate Value Report What We Did ¾ The Center for Agribusiness and Economic Development performed an analysis of each county’s economy, focusing on the role of food and fiber. What We Asked County Economy Modeled ¾ How much of a 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? Hall County Economy Production Agriculture-OUTPUT Output in $ Millions Percent 241.107 3.1 1.18 0.0 655.963 8.4 3,349.255 42.7 Trans/Public Util 320.880 4.1 Trade 944.987 12.1 Fin/Ins/Real Est 879.364 11.2 1,088.051 13.9 356.425 4.5 Other 4.432 0.1 Total 7,841.644 -- Agriculture Mining Construction Manufacturing Services Government Hall County Economy Production Agriculture + Directly-related Businesses Output in $ Millions Percent 1,336.716 17.0 1.18 0.0 655.963 8.4 2,253.646 28.7 Trans/Public Util 320.88 4.1 Trade 944.987 12.1 Finance/Ins/RE 879.364 11.2 1,088.051 13.9 356.425 4.5 Other 4.432 0.1 Total 7,841.644 -- Agriculture + Direct Mining Construction Manufacturing Services Government An Economic Snapshot of Hall County ¾ How much of Hall County’s total current economic output comes from food and fiber production? ¾ AG value alone of $241.1 million consisting of Farm Gate Value and landscaping services comprises 3.1% of the county’s economy. ¾ AG plus directly related businesses (ex. poultry processing, sausage mfg., etc.) comprise 17% of the county’s economy. Food and Fiber Production, Processing and Direct Manufacturing as % of Total Output 0 - 10% 10 - 20% 20 - 40% 40 - 60% 60 - 84% Hall Co. 17.0% 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 Hall County Production Agriculture IMPACT Direct $ (millions) Indirect $ (millions) 241.1 5.234 Mining 0 .0002 Construction 0 4.870 Manufacturing 0 18.338 Utilities 0 11.162 Trade 0 19.409 Fin/Ins/Real Est 0 14.880 Services 0 14.132 Government 0 1.389 Other 0 .110 Agriculture Total $330.6 million -- 4.2% of Total Economy Hall County Agriculture and Directly Related Businesses IMPACT Direct $ (millions) Indirect $ (millions) 1,336.716 168.983 Mining 0 .0007 Construction 0 21.742 Manufacturing 0 218.528 Utilities 0 59.101 Trade 0 130.850 Fin/Ins/Real Est 0 93.270 Services 0 100.441 Government 0 8.210 Other 0 .685 Agriculture + Direct Total $2.139 billion – 27.3% of Total Economy Food and Fiber Production, Processing and Direct Manufacturing Impact as % of Total Output 0 - 10% 10 - 20% 20 - 40% 40 - 60% 60 - 100% Hall Co. 27.3% Hall County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 9,144 1,221 Mining 0 0 Construction 0 290 Manufacturing 0 1,219 Utilities 0 442 Trade 0 1,911 Fin/Ins/Real Est 0 471 Services 0 1,815 Government 0 56 Other 0 74 Agriculture + Direct Total 16,643 What These Numbers Mean: A Brief Explanation ¾ Direct impact is $1.3 billion. This includes food and fiber production, processing and directly-related manufacturing. ¾ Indirect impact from the Trade sector is $130.9 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. Hall County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $2.1 billion. ¾ The total output is $7.8 billion. ¾ Thus, food and fiber (directly and indirectly) accounts for 27.3% of the total output. Contact Information Prepared by: Dr. John C. McKissick, Center Coordinator and Sue Boatright, Research Coordinator The 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 2004