The Economic Importance of Food and Fiber A Spotlight on Hart County, Georgia Prepared for: Hart County Cooperative Extension May, 2007 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Pierce County 25,284 24,276 2010 Trend CAED 2006 Est. 22,997 2000 19,712 18,585 15,814 1990 1980 1970 1950 15,229 14,495 1940 15,512 1960 15,174 1930 0 5,000 10,000 15,000 20,000 25,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development). 30,000 Population Change: 2000-2006 LOSS 0 – 6.4% 6.4 – 14.4% 14.4 – 34% 34 – 53.4% Hart Co. 5.5% Avg. GA County = 9.1% GA = 14.4% US = 6.4% Primary data source: U.S. Census Bureau (3/07) Percent of Land in Cropland & Forestland: 2002 23 – 40% 40 – 55% 55 – 70% 70 – 85% 85% or more Hart Co. 66.8% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 GA Total = 78.5% GA Avg. Co. = 77.3% Metro Avg. Co. = 70.7% Nonmetro Avg. Co. = 82.6% Components of 2005 Property Tax Gross Digest Hart County Residential 54.3% Ag-PreferentialEnviron-Conserv 19.8% Timber * 0.04% Mobile Home 0.7% Motor Vehicle 5.5% Public Utility 2.4% Industrial 11.1% Commercial 6.1% 40% Assessment Value of Property Gross Digest = $1,059,692,772 STATE Homestead & Property Exemptions = $910,880,125 Net M&O Digest = $148,812,647 Primary data source: GA Dept. of Revenue Value of exempt property = $44,937,472 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2005 County % ResiDential % Agri- % Com- % In- % Motor % cultural mercial dustrial Vehicle Other HART 54.3 19.8 6.1 11.1 5.5 3.1 ELBERT 36.7 25.6 15.2 7.5 8.9 6.2 FRANKLIN 32.7 35.1 14.7 5.5 7.3 4.7 MADISON 49.3 25.9 6.9 0.8 9.3 7.8 STEPHENS 57.0 5.6 12.4 12.7 7.5 4.7 Avg. GA Co. 41.5 21.7 13.3 7.9 8.4 7.8 Primary data source: GA Dept. of Revenue 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 2005 Farm Gate Value was $10.6 billion. Adding the value of landscape services increased the total agricultural production value to $12.3 billion. ¾ Total food and fiber production and directly related businesses account for a $52.7 billion output impact on Georgia's $614 billion economy. Production Agriculture: 2005 Georgia Total Agricultural Production Value $12.3 Billion Poultry & Eggs 36.7% Landscape services 14.0% Other Income 5.4% Fruits & Nuts 2.2% Forestry & Products 5.7% Ornamental Horticulture 7.3% Vegetables 5.2% Livestock & Aquaculture 10.6% Row & Forage Crops 13.0% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $317 2005 Farm Gate Value by County in Millions of Dollars What We Know about Hart County ¾ 2005 Farm Gate Value in Hart Co. was $234 million. Adding $5 million of landscape services increased the total agricultural production value to $239 million. ¾ The highest value commodity group was poultry/eggs, representing 83.6% of the total agricultural production value. Hart County 2005 Agricultural Production Value 2005 Agricultural Production Vegetables Fruits-Nuts 0.1% Orn Hort 0.1% Other Forestry 0.3% 4.8% Livestock- 0.2% Aquaculture 7.0% Landscape services 2.1% Row-Forage crops 1.7% 2005 Top Farm Gate Commodities Dairy Pork 1.9% 1.7% Breeder Pullet Unit 2.1% Field Nursery 2.2% Container Greenhouse Nursery 1.1% Hay 1.5% 0.8% Rest of Commodities 2.1% Beef Layers 3.3% 20.8% Poultry-Eggs 83.6% Total AG Value = $239 million Broilers 62.6% Trends in Hart County: Number of Farms & Average Farm Size Number of Farms, Hart County Average Farm Size 300 3000 Hart Co. Georgia 2500 200 A cres 2000 1500 115 100 567 500 Source: 1945-2002 (quinquennial) Censuses of Agriculture R 02 20 97 92 19 19 87 19 82 19 78 19 74 19 69 19 64 19 59 19 54 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 49 0 19 1000 218 Trends in Hart County: Land in Farms & Farms by Size A c re s X 1 ,0 0 0 Land in Farms Hart County Percent of Farms by Size, 2002 50 160 140 120 100 80 60 40 20 0 Hart Co. Georgia 40 30 65.4 20 10 9 19 2 97 R 20 02 19 87 19 82 19 78 74 19 69 19 64 19 19 59 19 54 19 50 19 19 45 0 1-9 acres Source: 1945-2002 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 acres 500-999 acres 1000+ acres Trends in Hart County Number of Farms by Commodity 350 321 1987 1992 1997 2002 300 230 250 200 150 100 67 31 50 18 14 0 Beef Cows Layers 20 wks+ Broilers sold Source: 1987-2002 (quinquennial) Censuses of Agriculture Hay Soybeans Wheat How Do We Compare ? Georgia, Hart and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $4,000 $3,500 $3,000 $3,678 $2,500 $3,158 $3,577 $2,376 $2,000 $1,500 $1,208 $957 $1,000 $500 $209 $0 ia g r o Ge $412 rt Ha $175 rt e b El $384 kli n Fra n $316 is o d Ma n Sources: 2002 Census of Agriculture and 2005 Farm Gate Value Report p e t S $195 ns e h 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 238.762 18.8% Mining 28.142 2.2% Construction 49.518 3.9% Manufacturing 525.889 41.4% Trans-Utilities-Info 106.926 8.4% Trade 62.858 5.0% Finance-Ins-RE 27.193 2.1% Services 121.227 9.5% Government 109.562 8.6% Total County Economic Output = $1.27 Billion Hart County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Millions Percent Agriculture + Direct 244.981 19.3% Mining 28.142 2.2% Construction 49.518 3.9% Manufacturing 519.669 40.9% Trans-Utilities-Info 106.926 8.4% Trade 62.858 5.0% Finance-Ins-RE 27.193 2.1% Services 121.227 9.5% Government 109.562 8.6% Total County Economic Output = $1.27 Billion 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 $239 million consisting of Farm Gate Value and landscape services comprises 18.8% of the county’s economy. ¾ AG plus directly related businesses (ex. logging, sawmills, etc.) comprise 19.3% 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. 19.3% 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 238.762 0 Mining 0 .489 Construction 0 .371 Manufacturing 0 1.654 Trans-Utilities-Info 0 7.733 Trade 0 6.242 Finance-Ins-RE 0 2.456 Services 0 11.409 Government 0 7.493 238.762 37.847 Agriculture Total Total Impact of Production AG = $277 million—21.8% of total economy Hart County Production Agriculture + Directly Related Businesses IMPACT Direct $ Millions Indirect $ Millions 240.770 0 Mining 0 .504 Construction 0 .379 Manufacturing 4.211 1.971 Trans-Utilities-Info 0 7.950 Trade 0 6.414 Finance-Ins-RE 0 2.554 Services 0 11.701 Government 0 7.676 244.981 39.148 Agriculture + Direct Total Total Impact of AG + Directly Related = $284 million—22.4% of total economy Hart County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 1,067 0 Mining 0 1 Construction 0 5 Manufacturing 0 12 Trans-Utilities-Info 0 37 Trade 0 104 Finance-Ins-RE 0 19 Services 0 219 Government 0 12 Agriculture + Direct Total Impact of AG + Directly Related Employment = 1,475 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $241 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $6.4 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 $284 million. ¾ The total output is $1.3 billion. ¾ Thus, food and fiber (directly and indirectly) account for 22.4% of the total 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. 22.4% Contact Information Prepared by: Sue Boatright and Archie Flanders 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 #0712A May, 2007