The Economic Importance of Food and Fiber A Spotlight on Coffee County, Georgia Prepared for: Coffee County Cooperative Extension December, 2005 Presented by: John C. McKissick The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Coffee County 43,501 42,743 39,379 37,413 2010 Trend CAED 2010 Proj. OPB 2004 Est. 2000 29,592 26,894 22,828 21,953 23,961 1990 1980 1970 1960 1950 21,541 19,739 1940 1930 0 9,000 18,000 27,000 36,000 45,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development); OPB (State Office of Planning & Budget). 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% Coffee Co. 5.3% 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% Coffee Co. 92.8% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2004 Property Tax Gross Digest Coffee County Residential 31.5% Ag-PreferentialEnvironmental 22.4% Heavy Equip. 0.02% Timber * 0.67% Mobile Home 2.6% Commercial 17.3% Industrial 40% Assessment Value of Property Public Utility 12.0% Motor Vehicle Gross Digest = $867,731,409 3.1% 10.4% STATE Homestead & Property Exemptions = $129,293,175 Net M&O Digest = $738,438,234 Primary data source: GA Dept. of Revenue Value of Exempt Property = $68,246,254 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2004 County COFFEE BEN HILL BERRIEN ATKINSON BACON IRWIN TELFAIR WARE Avg. GA Co. % ResiDential 31.5 38.9 36.2 20.0 29.9 29.4 22.3 40.1 40.8 Primary data source: GA Dept. of Revenue % Agri- % Com- % In% Motor cultural mercial dustrial Vehicle 22.4 10.6 18.1 42.9 25.3 35.5 26.3 6.9 20.8 17.3 18.2 21.0 6.4 12.5 8.8 19.0 23.7 13.2 12.0 14.6 2.9 10.0 10.1 4.0 15.3 3.6 7.8 10.4 10.6 13.6 9.9 12.5 11.1 8.4 11.5 9.0 % Other 6.4 7.0 8.2 10.7 9.7 11.3 8.7 14.3 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 $0.64 $0.87 $0.83 $0.90 $0.87 Cherokee Jones Carroll Oconee US Avg $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 Dorfman, Jeffery, The Economics of Growth, Sprawl and Land Use Decisions (presentation), Dept. of Ag & Applied Economics, UGA, January 2004. 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 Coffee County ¾ 2004 Farm Gate Value in Coffee Co. was $208.5 million. Adding $894 thousand of landscape services increased the total agricultural production value to $209.4 million. ¾ The highest value commodity group was poultry & eggs, representing 65.6% of the total agricultural production value. Coffee County 2004 Agricultural Production Value 2004 Agricultural Production Vegetables 0.3% Forestry 2.9% 2004 Top Farm Gate Commodities Fruits & Nuts 0.4% Orn Hort Other Income Landscape 3.6% 4.7% services 0.4% All Other 8.9% Breeder Pullet Units 0.9% LivestockAquaculture 5.3% Row-Forage crops 16.7% Broilers 63.7% Poultry-Eggs 65.6% Layers Pork 1.3% 1.8% Timber 2.8% Greenhouse Beef Tobacco 3.9% 2.5% 3.4% Total AG Value = $209.4 million Peanuts Cotton 6.1% 4.8% Trends in Coffee County: Number of Farms & Average Farm Size Number of Farms, Coffee County Average Farm Size 3000 2500 300 273 Coffee Co. Georgia Avg. GA Co. 310 farms 200 A cre s 2000 1500 100 692 500 Source: 1945-2002 (quinquennial) Censuses of Agriculture R 02 20 97 92 19 19 87 19 82 19 74 78 19 19 64 69 19 19 54 59 19 19 45 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 0 49 0 19 1000 218 Trends in Coffee County: Land in Farms & Farms by Size Land in Farms Coffee County Acres X 1,000 350 Percent of Farms by Size, 2002 40 300 Coffee Co. Georgia 30 250 188.7 200 20 150 100 10 50 0 9 19 2 97 R 20 02 87 1-9 acres 19 82 19 78 19 74 19 69 19 64 19 59 19 19 54 50 19 19 19 45 0 Source: 1945-2002 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 acres 500-999 acres 1000+ acres Trends in Coffee County Number of Farms by Commodity 400 378 1987 1992 1997 2002 331 350 300 250 200 184 178 167 149142156 149 150 126 93 100 50 66 71 54 37 43 44 33 35 12 10 9 22 0 Layers-Pullets Broilers Corn-grain Cotton Source: 1987-2002 (quinquennial) Censuses of Agriculture Tobacco Hay 165 How Do We Compare ? Georgia, Coffee, and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $1,400 $1,200 $1,000 $1,203 $1,105 $957 $945 $800 $776 $605 $600 $617 $400 $200 $0 $486 $416 $438 $209 $301 $199 $161 $191 $192 $100 $157 ill rien IA ffee re on acon rwin lfair a H G s W in I B er OR Co Ben Te k B t E A G 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? Coffee County Economy Agriculture - OUTPUT Output in $ Millions Percent Agriculture 220.087 9.8 Construction 113.525 5.1 Manufacturing 910.910 40.6 Trans-Utilities-Info 198.818 8.9 Trade 224.526 10.0 Finance-Ins-RE 91.438 4.1 Services 320.256 14.3 Government 165.305 7.4 Total County Economic Output = $2.245 billion Coffee County Economy Agriculture + Directly Related Businesses Output in $ Millions Percent Agriculture + Direct 563.999 25.1 Construction 113.525 5.1 Manufacturing 566.998 25.3 Trans-Utilities-Info 198.818 8.9 Trade 224.526 10.0 Finance-Ins-RE 91.438 4.1 Services 320.256 14.3 Government 165.305 7.4 Total County Economic Output = $2.245 billion An Economic Snapshot of Coffee County ¾ How much of Coffee County’s total economic output comes from food and fiber production? ¾ AG value alone of $220.1 million, consisting of ag production landscape services, comprises 9.8% of the county’s economy. ¾ AG plus directly related businesses (ex. poultry processing, logging, etc.) comprise 25.1% 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% Coffee Co. 25.1% 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. Coffee County Agriculture IMPACT Agriculture Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions 209.404 Indirect $ Millions 17.899 0 0 0 0 0 0 0 209.404 0.795 5.363 11.820 13.055 9.532 16.467 8.866 83.798 Total Impact of Production AG = $293.2 million—13.1% of total economy Coffee County Agriculture and Directly Related Businesses IMPACT Agriculture + Direct Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions 563.999 0 0 0 0 0 0 0 563.999 Indirect $ Millions 21.401 2.224 51.786 25.301 28.043 19.551 39.761 17.354 205.421 Total Impact of AG+ Directly Related = $769.4 million—34.3% of total economy Coffee County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 3,978 614 Construction 0 31 Manufacturing 0 332 Trans-Utilities-Info 0 249 Trade 0 457 Finance-Ins-RE 0 157 Services 0 787 Government 0 14 Agriculture + Direct Total Impact of AG + Directly Related Employment = 6,619 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $564 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $28 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. Coffee County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $769.4 million. ¾ The total output is $2.2 billion. ¾ Thus, food and fiber (directly and indirectly) account for 34.3% 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% Coffee Co. 34.3% Contact Information Prepared by: John McKissick, 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 #05–24A December, 2005