The Economic Importance of Food and Fiber A Spotlight on Jasper County, Georgia Prepared for: Jasper County Cooperative Extension February, 2006 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Jasper County 14,739 15,212 12,866 11,426 2010 Trend CAED 2010 Proj. OPB 2004 Est. 2000 8,453 7,553 1990 1980 5,760 6,135 7,473 1970 1960 1950 8,772 8,594 1940 1930 0 4,000 8,000 12,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development); OPB (State Office of Planning & Budget). 16,000 Population Change: 2000-2004 LOSS 0 – 4.3% 4.3 – 7.8% 7.8 – 15.7% 15.7 – 34% GA = 7.8% US = 4.3% 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% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2004 Property Tax Gross Digest Jasper County Residential 35.6% Ag-PreferentialEnv-Conserv 11.1% Heavy Equip. 0.08% Timber * 1.73% Mobile Home 0.8% Motor Vehicle 6.2% Commercial 3.8% Public Utility Industrial 6.0% 4.4% 40% Assessment Value of Property Gross Digest = $541,077,378 STATE Homestead & Property Exemptions = $129,144,742 Net M&O Digest = $411,932,636 Primary data source: GA Dept. of Revenue Value of exempt property = $65,073,637 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2004 County JASPER BUTTS JONES MONROE MORGAN NEWTON PUTNAM Avg. GA Co. % ResiDential 35.6 47.8 53.7 20.7 29.3 57.9 64.0 40.6 Primary data source: GA Dept. of Revenue % Agri- % Com- % In% Motor cultural mercial dustrial Vehicle 41.4 20.2 14.1 8.0 47.9 7.2 7.7 20.8 3.8 11.4 9.2 4.3 8.7 9.9 8.0 13.2 4.4 3.3 2.3 0.1 5.8 13.5 3.0 7.9 6.2 10.8 11.8 3.8 5.6 8.8 5.8 9.0 % Other 8.6 6.6 8.8 63.1 2.8 2.6 11.5 8.4 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 2004 Farm Gate Value was $10.3 billion. Adding the value of landscape services increased the total agricultural production value to $11.2 billion. ¾ Total food and fiber production and directly related businesses account for a $49.3 billion impact on Georgia's $557 billion economy. Production Agriculture: 2004 Georgia Total Agricultural Production Value $11.2 Billion Other Income 4.1% Poultry & Eggs 41.5% Landscape services 10.2% Fruits & Nuts 2.0% Forestry & Products 5.3% Ornamental Horticulture 5.7% Vegetables 6.3% Livestock & Aquaculture 11.4% Row & Forage Crops 13.4% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $325 2004 Farm Gate Value by County in Millions of Dollars What We Know about Jasper County ¾ 2004 Farm Gate Value in Jasper Co. was $70.2 million. Adding $486 thousand of landscape services increased the total agricultural production value to $70.7 million. ¾ The highest value commodity group was livestock/aquaculture representing 27.5% of the total agricultural production value. Jasper County 2004 Agricultural Production Value 2004 Top Farm Gate Commodities 2004 Agricultural Production Fruits-Nuts 0.9% Other 7.4% Landscape services 0.7% Poultry-Eggs 24.6% Orn Hort 19.2% Row-Forage crops 4.4% Vegetables 1.6% Forestry 13.8% LivestockAquaculture 27.5% Spec Events 3.4% Other Hay commodities 12.2% 3.4% Layers 18.0% Breeder Pullet Unit 4.3% Timber 13.3% Beef 5.8% Container Nursery 6.6% Dairy 10.7% Total AG Value = $70.7 million Horses 10.9% Field Nursery 11.4% Trends in Jasper County: Number of Farms & Average Farm Size Number of Farms, Jasper County Average Farm Size 600 900 800 700 600 500 400 300 200 100 0 Jasper Co. Georgia 500 A cres 400 243 218 300 200 210 100 Source: 1945 - 2002 (quinquennial) Censuses of Agriculture 02 R 20 97 92 19 19 87 19 82 19 78 19 74 19 69 19 64 59 19 19 54 19 49 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 Trends in Jasper County: Land in Farms & Farms by Size 180 160 140 120 100 80 60 40 20 0 Percent of Farms by Size, 2002 50 Source: 1945 - Jasper Co. Georgia 40 30 50.9 20 10 0 19 45 19 50 19 54 19 59 19 64 19 69 19 74 19 78 19 82 19 87 19 9 19 2 97 R 20 02 Acres X 1,000 Land in Farms Jasper County 1-9 acres 2002 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 acres 500-999 acres 1000+ acres Trends in Jasper County Number of Farms by Commodity 160 140 1987 1992 1997 2002 125 120 100 80 66 60 40 20 12 4 0 Beef cows Source: 1987 - Layers 20+ wks Any poultry 2002 (quinquennial) Censuses of Agriculture Hay How Do We Compare ? Georgia, Jasper and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $2,500 $2,000 $2,183 $1,500 $1,000 $1,379 $1,408 $957 $409 $500 $0 $209 $334 ia er g p r o Jas Ge $87 tts u B $689 $679 $123 s ne o J M $467 $180 roe n o $239 $59 $395 an ton tnam g r w Pu Mo Ne Sources: 2002 Census of Agriculture and 2004 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? Jasper County Economy Agriculture OUTPUT Output in $ Millions 72.658 3.863 23.734 175.665 11.748 8.169 7.151 33.107 52.202 Percent 18.8 1.0 6.1 45.2 3.0 2.1 1.8 8.5 13.4 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $388.3 million Jasper County Economy Agriculture + Directly Related Businesses OUTPUT Agriculture + Direct Output in $ Millions 85.541 3.863 23.734 162.781 11.748 8.169 7.151 33.107 52.202 Percent 22.1 1.0 6.1 41.9 3.0 2.1 1.8 8.5 13.4 Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $388.3 million An Economic Snapshot of Jasper County ¾ How much of Jasper County’s total economic output comes from food and fiber production? ¾ Agricultural output alone comprises 18.8% of the county’s economy. ¾ AG plus directly related businesses (ex. fertilizer mixing, sawmills, etc.) comprise 22.2% 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% Jasper Co. 22.2% 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 Jasper County Agriculture IMPACT Direct $ Millions 70.716 0 0 0 0 0 0 0 0 70.716 Indirect $ Millions 0.000 0.001 0.341 0.538 0.923 0.680 0.790 2.581 3.012 8.893 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Total Impact of Production AG = $79.6 million—20.5% of total economy Jasper County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions 85.837 0 0 0 0 0 0 0 0 85.837 Indirect $ Millions 0 0.001 0.374 1.909 1.096 0.750 0.902 2.998 3.334 11.365 Total Impact of AG + Directly Related = $97.2 million—25% of total economy Jasper County Production Agriculture + Directly Related Industries Employment IMPACT Direct 1,157 0 0 0 0 0 0 0 0 Indirect 0 0 5 8 9 17 7 61 5 Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Impact of AG + Directly Related Employment = 1,269 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $85.8 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $750 thousand. 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. Jasper County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $97.2 million. ¾ The total output is $388.6 million. ¾ Thus, food and fiber (directly and indirectly) account for 25% of the total output. Food and Fiber Production, Processing and Direct Manufacturing Impact as % of Total Output 0 - 10% 10 - 20% 20 - 40% 40 - 60% 60 - 100% Jasper Co. 25% 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 #06-08A February, 2006