The Economic Importance of Food and Fiber Prepared for:

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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
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