The Economic Importance of Food and Fiber A Spotlight on Pierce County, Georgia Prepared for: Pierce County Cooperative Extension April, 2007 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Pierce County 18,480 17,452 2010 Trend CAED 2006 Est. 15,636 2000 13,328 11,897 1990 1980 9,281 1970 9,678 11,112 1960 1950 11,800 1940 12,522 1930 0 5,000 10,000 15,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development). 20,000 Population Change: 2000-2006 LOSS 0 – 6.4% 6.4 – 14.4% 14.4 – 34% 34 – 53.4% Avg. GA County = 9.1% GA = 14.4% US = 6.4% Pierce Co. 11.7% Primary data source: U.S. Census Bureau Percent of Land in Cropland & Forestland: 2002 23 – 40% 40 – 55% 55 – 70% 70 – 85% 85% or more GA Total = 78.5% GA Avg. Co. = 77.3% Metro Avg. Co. = 70.7% Nonmetro Avg. Co. = 82.6% Pierce Co. 80.1% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2005 Property Tax Gross Digest Pierce County Residential 43.3% Ag-PreferentialEnviron-Conserv 21.6% Timber * 1.6% Commercial 10.5% Mobile Home 3.0% Motor Vehicle 11.3% Public Utility 4.1% Industrial 4.6% 40% Assessment Value of Property Gross Digest = $354,504,681 STATE Homestead & Property Exemptions = $30,094,077 Net M&O Digest = $324,410,604 Primary data source: GA Dept. of Revenue Value of exempt property = $14,741,212 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2005 % ResiDential % Agri- % Com- % In- % Motor % cultural mercial dustrial Vehicle Other Pierce 43.2 21.6 10.5 4.6 11.3 8.7 Appling 17.4 10.5 8.1 2.9 6.6 54.4 Bacon 30.3 24.4 13.7 9.6 12.1 9.9 Brantley 37.7 17.8 12.9 0.0 14.4 17.1 Ware 43.0 7.0 3.8 10.6 12.3 Wayne 29.9 14.3 12.9 27.8 8.7 6.3 Avg. GA Co. 41.5 21.7 13.3 8.4 7.8 County Primary data source: GA Dept. of Revenue 23.3 7.9 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 Pierce County ¾ 2005 Farm Gate Value in Pierce Co. was $54.5 million. Adding $582 thousand of landscape services increased the total agricultural production value to $55 million. ¾ The highest value commodity group was row & forage crops, representing 40.3% of the total agricultural production value. Pierce County 2005 Agricultural Production Value 2005 Agricultural Production Other 12.5% Landscape services 1.1% Fruits-Nuts 15.0% Poultry-Eggs 4.9% Row-Forage crops 40.3% Orn Hort 1.3% Vegetables 6.0% 2005 Top Farm Gate Commodities Forestry 8.6% LivestockAquaculture 10.3% Peanuts 13.4% Rest of commodities 32.2% Pecans 3.0% Cucumbers 3.6% Tobacco 3.7% Total AG Value = $55 million Cotton 10.0% Dairy 7.9% Corn 3.9% Hay Blueberries 6.9% 7.6% Timber 7.8% Trends in Pierce County: Number of Farms & Average Farm Size Number of Farms, Pierce County Average Farm Size 300 1600 1400 1200 A cres 200 1000 800 600 227 218 Pierce Co. Georgia 100 434 400 200 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 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 49 0 Trends in Pierce County: Land in Farms & Farms by Size A c re s X 1 ,0 0 0 Land in Farms Pierce County Percent of Farms by Size, 2002 40 180 160 140 120 100 80 60 40 20 0 Pierce Co. Georgia 30 98.5 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 Pierce County Number of Farms by Commodity 200 1987 1992 1997 2002 180 160 140 120 117 120 100 72 80 72 59 60 28 40 17 20 0 Beef Cows Hogs and Pigs Inventory Corn for Grain or Seed Cotton Source: 1987-2002 (quinquennial) Censuses of Agriculture Tobacco Soybeans for Beans Hay How Do We Compare ? Georgia, Pierce and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $1,400 $1,200 $1,254 $1,000 $800 $874 $957 $600 $0 Ge $782 $749 $553 $400 $200 $974 $209 ia g r o $126 e c r Pie $186 ng i l p Ap $196 $151 $94 n o ey l c t a n B Br a $237 re ne a y W Wa Sources: 2002 Census of Agriculture and 2005 Farm Gate Value Report What We Did ¾ The Center for Agribusiness and Economic Development performed an analysis of the county’s economy, focusing on the role of food and fiber. What We Asked County Economy Modeled 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? Pierce County Economy Agriculture OUTPUT Output in $ Millions Percent Agriculture 55.061 10.4 Construction 52.607 9.9 Manufacturing 115.492 21.7 Trans-Utilities-Info 62.113 11.7 Trade 75.553 14.2 Finance-Ins-RE 31.022 5.8 Services 66.125 12.4 Govt & Other 73.544 13.8 Total County Economic Output = $531.5 million Pierce County Economy Agriculture + Directly Related Businesses OUTPUT Agriculture + Direct Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Output in $ Millions Percent 127.194 52.607 43.358 62.113 75.553 31.022 66.125 73.544 23.9 9.9 8. 2 11.7 14.2 5.8 12.4 13.8 Total County Economic Output = $531.5 million An Economic Snapshot of Pierce County ¾ How much of Pierce County’s total economic output comes from food and fiber production? ¾ AG value alone of $55 million consisting of Farm Gate Value and landscape services comprises 10.4% of the county’s economy. ¾ AG plus directly related businesses (ex. logging, sawmills, animal slaughtering, etc.) comprise 23.9% 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% Pierce Co. 23.9% 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 Pierce County Agriculture IMPACT Direct $ Millions Indirect $ Millions 55.061 0 Construction 0 .167 Manufacturing 0 .187 Agriculture 0 1.237 Trans-Utilities-Info 0 3.484 Trade 0 1.395 Finance-Ins-RE 0 2.847 Services 0 2.479 Government 55.061 11.797 Total Total Impact of Production AG = $66.9 million–12.6% of total economy Pierce County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions Indirect $ Millions 87.971 0 39.223 0 0 0 0 0 127.194 0 .281 3.011 3.478 8.232 2.861 6.155 4.323 28.341 Total Impact of AG+Directly Related=$155.5 million—29.3% of Total Economy Pierce County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 928 0 Construction 0 3 Manufacturing 0 13 Trans-Utilities-Info 0 31 Trade 0 103 Finance-Ins-RE 0 21 Services 0 125 Government 0 4 Agriculture + Direct Total Impact of AG + Directly Related Employment = 1,227 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $127.2 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $8.2 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. Pierce County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $155.5 million. ¾ The total output is $531.5 million. ¾ Thus, food and fiber (directly and indirectly) account for 29.3% 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% Pierce Co. 29.3% 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 #0711A April, 2007