The Economic Importance of Food and Fiber

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The Economic Importance of Food and Fiber

A Spotlight on Pickens County, Georgia

Prepared for:

Pickens County Cooperative Extension Service

November, 2005 by:

The Center for Agribusiness and

Economic Development

College of Agricultural and Environmental Sciences

The University of Georgia

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

Poultry &

Eggs

41.5%

Landscape services

10.2%

Other Income

4.1%

Fruits & Nuts

2.0%

Forestry &

Products

5.3%

Ornamental

Horticulture

5.7%

Vegetables

6.3%

Row &

Forage Crops

13.4%

Livestock &

Aquaculture

11.4%

$0 - $20

$20 - $45

$45 - $80

$80 - $200

$200 - $325

2004 Farm Gate

Value by County in Millions of Dollars

What We Know about Pickens County

¾ 2004 Farm Gate Value in Pickens Co. was $63.6 million. Adding $1.5 million of landscape services increased the total agricultural production value to $65.1 million.

¾ The highest value commodity group was poultry & eggs, representing

85.6% of the total agricultural production value.

Pickens County

2004 Agricultural Production Value

Livestock-

Aquaculture

7.0%

Row-

Forage crops

1.2%

2004 Agricultural Production

Forestry

1.9%

Veges-

Fruits-

Nuts

0.3%

Orn Hort

1.5%

Land-

Other scape

0.3% services

2.2%

Poultry-

Eggs

85.6%

2004 Top Farm Gate Commodities

Breeder

Hay

Pullet Unit

1.0%

1.4%

Timber

Beef

1.8%

2.5%

Layers

3.7%

Horses

4.2%

Field

Nursery

Greenhouse

0.6%

0.6%

Pork

0.5%

Other commodities

1.3%

Broilers

82.5%

Total AG Value = $65.1 million

Trends in Pickens County:

Number of Farms & Average Farm Size

Number of Farms, Pickens County

1000

900

800

700

600

500

400

300

200

100

0

243

1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002

300

200

100

Pickens Co.

Georgia

Average Farm Size

0

1945 19

49

1954 195

9

1964 196

9

1974 197

8

1982 198

7

19

92

19

97

R

20

02

Source: 1945-2002 (quinquennial) Censuses of Agriculture

Trends in Pickens County:

Land in Farms & Farms by Size

Land in Farms

Pickens County

120

100

80

60

40

20

0

17.372

19

45

19

50

19

54

19

59

19

64

19

69

19

74

19

78

19

82

19

87

19

92

199

7R

20

02

140

120

100

80

60

40

20

0

Percent of Farms by Size, 2002

Pickens Co.

1-9 acres 10-49 acres

Georgia

50-179 acres

180-499 acres

500-999 acres

1000+ acres

Source: 1945-2002 (quinquennial) Censuses of Agriculture

Trends in Pickens County

Number of Farms by Commodity

160

140

120

100

80

60

40

20

0

67

47

40 41

Broilers sold

1987

1992

1997

2002

13 15 14 15

Layers inventory

89

70

66 65

Hay

140

118

113

112

Cattle/calves sold

Source: 1987-2002 (quinquennial) Censuses of Agriculture

How Do We Compare ?

Georgia, Pickens and Surrounding Counties

Farm Gate Value

$ Per Farm (thousands) $ Per Acre

$10,000

$8,000

$8,474

$6,000

$4,000

$3,805

$3,662 $2,591 $2,645

$2,000 $957

$2,154

$0

Geo rgi a

$209

Pic ken s

$262

Bar

$361 tow

Che rok

$129 ee

Daw son

$347

Gilm er

$692

Gor

$251 don

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?

Pickens County Economy

Agriculture - OUTPUT

Agriculture

Mining

Construction

Manufacturing

Trans-Utilities-Info

Trade

Finance-Ins-RE

Services

Government

Output in $ Millions

70.011

38.824

93.553

113.567

48.726

77.430

107.816

124.698

102.645

Percent

9.0

5.0

12.0

14.6

6.3

10.0

13.9

16.0

13.2

Total County Economic Output = $777.3 million

Pickens County Economy

Agriculture + Directly Related Businesses

Output in $ Millions Percent

Agriculture + Direct

Mining

Construction

Manufacturing

Trans-Utilities-Info

Trade

Finance-Ins-RE

Services

Government

84.751

38.824

93.553

98.828

48.726

77.430

107.816

124.698

102.645

10.9

5.0

12.0

12.7

6.3

10.0

13.9

16.0

13.2

Total County Economic Output = $777.3 million

An Economic Snapshot of Pickens County

¾ How much of Pickens County’s total economic output comes from food and fiber production?

¾ AG value alone of $70 million comprises

9% of the county’s economy.

¾ AG plus directly related businesses (ex. ag services, logging, etc.) comprise

10.9% 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%

Pickens Co.

10.9%

What is the Impact?

¾ What is the total (direct and indirect) impact of food and fiber production and directly related industries?

¾ This 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.

Utilities

Labor

Seed

Pickens County

Production Agriculture IMPACT

Direct $ Millions Indirect $ Millions

Agriculture

65.072

3.683

Mining

Construction

Manufacturing

Trans-Utilities-Info

Trade

Finance-Ins-RE

0

0

0

0

0

0.003

0.260

0.352

2.656

2.910

0 2.666

Services 0 3.291

Government 0 1.629

Total Impact of Production AG = $82.5 million--10.6% of total economy

Pickens County

Agriculture + Directly Related Businesses IMPACT

Direct $ Millions Indirect $ Millions

Agriculture + Direct

Mining

Construction

70.011

0

0

4.794

0.004

0.349

Manufacturing

Trans-Utilities-Info

Trade

Finance-Ins-RE

Services

Government

Total

14.739

0

0

0

0

0

84.751

0.724

3.412

3.964

3.458

4.545

2.328

23.579

Total Impact of AG + Directly Related = $108.3 million--13.9% of total economy

Pickens County

Production Agriculture + Directly Related Industries

Employment IMPACT

Direct Indirect

Agriculture + Direct

Mining

Construction

Manufacturing

Trans-Utilities-Info

497

0

0

0

31

0

4

5

0 14

Trade

Finance-Ins-RE

0

0

53

15

Services

Government

0

0

80

2

Total Impact of AG + Directly Related Employment = 702 jobs

What These Numbers Mean:

A Brief Explanation

¾ Direct impact is $84.8 million. This includes food and fiber production, processing and directly related manufacturing.

¾ Indirect impact from the Trade sector is

$4 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.

Pickens County Food and Fiber

Impact Conclusions

¾ The total impact of food and fiber production, processing and direct manufacturing is $108.3 million.

¾ The total output is $777.3 million.

¾ Thus, food and fiber (directly and indirectly) account for 13.9% 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%

Pickens Co.

13.9%

Contact Information

Prepared by:

Archie Flanders and Sue Boatright

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 - 22A

November, 2005

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