The Economic Importance of Food and Fiber A Spotlight on Habersham County, Georgia Prepared for Habersham County Cooperative Extension December, 2008 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Habersham County 45,035 44,362 42,272 2010 Trend CAED 2010 OPB Proj. 2007 Est. 35,902 2000 27,621 25,020 20,691 18,116 16,553 14,771 12,748 1990 1980 1970 1960 1950 1940 1930 0 10,000 20,000 30,000 40,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; OPB (State Office of Planning and Budget) CAED (Center for Agribusiness & Economic Development). 50,000 Population Change: 2000-2007 LOSS 0 – 7.2% 7.2 – 16.6% 16.6 – 39.0% 39.0 – 61.5% Avg. GA County = 9.9% GA = 16.6% US = 7.2% Habersham Co. 17.8% Primary data source: U.S. Census Bureau (3/08) 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% Habersham Co. 77.6% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2007 Property Tax Gross Digest Habersham County Residential 58.6% Ag-PreferentialEnviron-Conserv 14.6% Timber * 0.01% Mobile Home 1.0% Motor Vehicle 6.7% Industrial Public Utility 4.8% 3.4% Primary data source: GA Dept. of Revenue Commercial 10.9% 40% Assessment Value of Property Gross Digest = $1,422,525,967 COUNTY Homestead & Property Exemptions = $188,283,850 Net M&O Digest = $1,234,242,117 Value of exempt property = $149,013,144 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2007 County % Resi- % Agri- % Comdential cultural mercial % Industrial % % UtilMotor ity Veh % Mo- % Timbile ber Home HABERSHAM 58.6 14.6 10.9 4.8 3.4 6.7 1.0 0.01 BANKS 36.6 35.9 12.6 3.6 3.2 6.7 1.2 0.04 HALL 56.3 7.3 16.6 11.3 1.7 6.4 0.4 0.002 RABUN 57.1 6.5 5.7 STEPHENS 56.7 6.4 13.2 11.6 3.7 7.2 1.1 0.05 TOWNS 78.4 8.0 8.1 0.1 1.1 3.8 0.5 Avg. GA Co. 42.4 23.8 12.7 7.0 5.0 Primary data source: GA Dept. of Revenue 1.8 25.6 2.9 0.3 7.2 1.1 0 0 0.9 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 2007 Farm Gate Value was $11.6 billion. Adding the value of landscape services increased the total agricultural production value to $13.6 billion. ¾ Total food and fiber production and directly related businesses account for a $59 billion output impact on Georgia's $735 billion economy. Production Agriculture: 2007 Georgia Total Agricultural Production Value $13.6 Billion Landscape services Fruits & Nuts 15.3% 1.8% Poultry & Eggs 39.8% Forestry & Products 4.4% Other Income 4.5% Livestock & Ornamental Aquaculture Horticulture 9.8% Vegetables 5.6% 6.6% Row & Forage Crops 12.3% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $390 2007 Farm Gate Value by County in Millions of Dollars What We Know about Habersham County ¾ 2007 Farm Gate Value in Habersham Co. was $299 million. Adding $3 million of landscape services increased the total agricultural production value to $302 million. ¾ The highest value commodity group was poultry/eggs, representing 89.8% of the total agricultural production value. Habersham County 2007 Agricultural Production Value 2007 Agricultural Production Vegetables Orn Hort 0.4% 1.6% LivestockForestry Aquaculture 0.3% 4.2% Fruits-Nuts 0.2% Other 1.5% Row-Forage crops 0.9% Poultry-Eggs 89.8% Landscape services 1.0% 2007 Top Farm Gate Commodities Greenhouse Ag-Tourism 0.7% Horses 1.5% 1.4% Beef Layers 1.7% 8.0% Turfgrass Container 0.4% Nursery Pork 0.4% 0.5% Rest of Commodities 2.7% Breeder Pullet Unit 8.4% Total AG Value = $3.05 million Broilers 74.3% Trends in Habersham County: Number of Farms & Average Farm Size Number of Farms, Habersham County Average Farm Size 300 1600 Habersham Co. Georgia 218 1400 1200 Acres 200 1000 800 600 517 75 100 400 200 Source: 1945-2002 (quinquennial) Censuses of Agriculture R 02 20 97 92 19 19 87 19 78 82 19 19 69 74 19 19 59 64 19 19 54 19 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 49 0 Trends in Habersham County: Land in Farms & Farms by Size Land in Farms Habersham County Percent of Farms by Size, 2002 300 A cres X 1,000 120 Habersham Co. Georgia 250 100 200 80 150 60 38.526 40 20 100 50 0 9 19 2 97 R 20 02 87 19 82 19 78 19 74 19 69 19 64 19 59 19 54 19 19 50 19 19 45 0 1-9 acres Source: 1945-2002 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 500-999 acres acres 1000+ acres Trends in Habersham County Number of Farms by Commodity 300 278 1987 1992 1997 2002 250 200 150 150 100 50 27 0 Beef Cows Hay Source: 1987-2002 (quinquennial) Censuses of Agriculture Layers, 20 wks How Do We Compare ? Georgia, Habersham and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $8,000 $7,000 $6,000 $7,754 $5,000 $4,324 $4,000 $3,866 $3,000 $2,000 $1,000 $2,037 $1,076 $235 $3,317 $578 $407 $286 $139 $0 a am rgi h o s er Ge b Ha ks n Ba ll Ha n bu a R s en h p Ste Sources: 2002 Census of Agriculture and 2007 Farm Gate Value Report $272 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? Habersham County Economy Agriculture OUTPUT Output in $ Millions 301.788 2.419 126.532 793.657 136.522 146.064 202.085 347.751 164.945 Percent 13.6% 0.1% 5.7% 35.7% 6.1% 6.6% 9.1% 15.7% 7.4% Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $2.2 Billion Habersham County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Millions Percent 524.795 23.6% Agriculture + Direct 2.419 0.1% Mining 126.532 5.7% Construction 570.649 25.7% Manufacturing 136.522 6.1% Trans-Utilities-Info 146.064 6.6% Trade 202.085 9.1% Finance-Ins-Real Est 347.751 15.7% Services 164.945 7.4% Government Total County Economic Output = $2.2 Billion Habersham County Employment Total Jobs = 17,763 Mining 25 0.1% Construction 1,077 6.1% Manufacturing 2,389 13.4% AG + Directly Related 2,013 11.3% Trade 2,194 12.4% State & Federal Government 1,318 7.4% Public Education 1,865 10.5% Trans-UtilitiesInfo 729 4.1% Finance-InsReal Est 909 5.1% Other Services 3,146 17.7% Professional Services 2,098 11.8% Primary data source: Center for Agribusiness & Economic Development, UGA An Economic Snapshot of Habersham County ¾ How much of Habersham County’s total economic output comes from food and fiber production? ¾ AG value alone of $301.8 million consisting of Farm Gate Value and landscape services comprises 13.6% of the county’s economy. ¾ AG plus directly related businesses (ex. poultry processing, sawmills, etc.) comprise 23.6% 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% Habersham Co. 23.6% 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 Habersham County Agriculture IMPACT Direct $ Millions Indirect $ Millions 301.788 0 Agriculture 0 0.037 Mining 0 1.349 Construction 0 2.264 Manufacturing 0 11.888 Trans-Utilities-Info 0 6.530 Trade 0 9.681 Finance-Ins-Real Est 0 20.870 Services 0 0.771 Government 301.788 53.390 Total Total Impact of Production AG = $355.2 million 16.0% of total economy Habersham County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-Real Est Services Government Total Direct $ Millions Indirect $ Millions 524.795 0 0 0 0 0 0 0 0 524.795 0 0.066 2.401 5.270 24.393 12.842 19.345 44.267 1.794 110.377 Total Impact of AG + Directly Related = $635.2 million 28.6% of total economy Habersham County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 2,013 0 Agriculture + Direct 0 27 Construction 0 25 Manufacturing 0 162 Trans-Utilities-Info 0 172 Trade 0 96 Finance-Ins-Real Est 0 603 Services 0 11 Government Total Impact of AG + Directly Related Employment = 3,108 Jobs 17.5% of total employment What These Numbers Mean: A Brief Explanation ¾ Direct impact is $524.8 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $12.8 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. Habersham County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $635.2 million. ¾ The total county output is $2.2 Billion. ¾ Thus, food and fiber (directly and indirectly) account for 28.6% 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% Habersham Co. 28.6% 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 #08-33A December, 2008