The Economic Importance of Food and Fiber A Spotlight on Charlton County, Georgia Prepared for: Charlton County Cooperative Extension Service August, 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 of agricultural production was $10.3 billion. ¾ Total food and fiber production and directly related businesses account for $52 billion of Georgia's $556 billion economy. Production Agriculture: 2004 GA Farm Gate Total Value $10.3 Billion Other Income 4.6% Fruits & Nuts 2.2% Forestry & Products 5.9% Livestock & Ornamental Vegetables Aquaculture Horticulture 12.7% 7.1% 6.4% Poultry & Eggs 46.2% Row & Forage Crops 15.0% 0 - 20 20 - 45 45 - 80 80 - 200 200 - 325 Farm Gate Value in Millions of Dollars What We Know about Charlton County ¾ Agricultural production in Charlton County generated $20.3 million in 2004. ¾ The highest value commodity group was forestry & products, representing 49% of the total agricultural production value. Charlton County 2004 Agricultural Production Value 2004 Agricultural Production and AG/Landscape Services Fruits-NutsVeges 0.3% Orn Hort 6.9% Forestry 48.7% Other 8.9% 2004 Top Farm Gate Commodities AgLandscape Svcs Poultry-Eggs 1.4% 24.2% Row-Forage crops 2.5% LivestockAquaculture 7.2% Horses 2.9% Field nursery 1.8% Hay 1.2% Tmber 49.1% Beef Container 3.3% nursery 4.2% Breeder pullet units 5.8% Broilers 7.1% Deer hunting leases 8.0% Total AG Value = $20.3 million All others 4.9% Layers 11.7% Trends in Charlton County: Number of Farms & Average Farm Size Number of Farms, Charlton County Average Farm Size 500 300 Charlton Co. Georgia 400 Acres 200 100 300 200 100 Source: 1945-2002 (quinquennial) Censuses of Agriculture R 02 20 97 87 92 19 19 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 Charlton County: Land in Farms & Farms by Size Percent of Farms by Size, 2002 40 80 70 60 50 40 30 20 10 0 Charlton Co. Georgia 30 20 10 9 19 2 97 R 20 02 87 19 82 19 78 19 74 19 19 69 64 19 59 19 54 19 19 19 19 50 0 45 Acres X 1,000 Land in Farms Charlton County 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 Charlton County Number of Farms by Commodity 80 1987 1992 1997 2002 70 60 50 40 30 20 10 0 Beef cows Cattle & calves Corn for grain Tobacco Source: 1987-2002 (quinquennial) Censuses of Agriculture Hay Woodland How Do We Compare ? Georgia, Charlton and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $1,400 $1,200 $1,000 $800 $1,341 $957 $1,209 $1,044 $776 $684 $600 $400 $200 $209 $198 $82 $275 $314 $157 $0 ia ey en on l g t d t r l o m ar an r h Ge Ca B C ch n i Cl Sources: 2002 Census of Agriculture and 2004 Farm Gate Value Report re a W What We Did ¾ The Center for Agribusiness and Economic Development performed an analysis of each county’s economy, focusing on the role of food and fiber. What We Asked County Economy Modeled ¾ How much of a 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? Charlton County Economy Production Agriculture-OUTPUT Agriculture Construction Manufacturing Transp/Utilities/Info Trade Fin/Ins/Real Est Services Government Total Output in $ Millions Percent 20.252 6.781 95.669 11.740 19.469 10.582 56.131 44.526 7.6 2.6 36.1 4.4 7.3 4.0 21.2 16.8 $265.2 million -- Charlton County Economy Production Agriculture + Directly Related Businesses Agriculture + Direct Construction Manufacturing Trans/Info/Util Trade Finance/Ins/RE Services Government Total Output in $ Millions Percent 79.470 6.781 36.452 11.740 19.469 10.582 56.131 44.526 30.0 2.6 13.7 4.4 7.3 4.0 21.2 16.8 $265.2 million -- An Economic Snapshot of Charlton County ¾ How much of Charlton County’s total economic output comes from food and fiber production? ¾ AG value alone of $20.3 million, consisting of Farm Gate Value and landscape services, comprises 7.6% of the county’s economy. ¾ AG plus directly related businesses (ex. logging/sawmills, farm equipment mfg., etc.) comprise 30% 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% Charlton Co. 30% 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 Charlton County Production Agriculture IMPACT Agriculture Construction Manufacturing Trans/Info/Util Trade Fin/Ins/Real Est Services Government Total Direct $ (millions) Indirect $ (millions) 20.252 0 0 0 0 0 0 0 3.514 0.024 0.069 0.580 0.626 0.374 0.662 0.699 $26.8 million – 10.1% of total economy Charlton County Agriculture and Directly Related Businesses IMPACT Agriculture + Direct Construction Manufacturing Trans/Info/Util Trade Fin / Ins / Real Est Services Government Total Direct $ (millions) Indirect $ (millions) 20.252 0.000 59.218 0.000 0.000 0.000 0.000 0.000 3.514 0.069 20.411 2.116 2.425 1.400 2.517 2.449 $114.4 million – 43% of total economy Charlton County Production Agriculture + Directly Related Industries Employment IMPACT Agriculture + Direct Construction Manufacturing Trans/Info/Util Trade Fin/Ins/Real Est Services Government Total Employment Direct Indirect 444 0 0 306 0 0 0 0 40 0 1 99 16 39 17 62 1,027 What These Numbers Mean: A Brief Explanation ¾ Direct impact is $79.5 million. This includes food and fiber production, processing and directly-related manufacturing. ¾ Indirect impact from the Trade sector is $2.4 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. Charlton County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $114.4 million. ¾ The total output is $265.2 million. ¾ Thus, food and fiber (directly and indirectly) account for 43% of the total output. Food and Fiber Production, Processing and Direct Manufacturing Impact as % of Total Output 0 10 20 40 60 - 10% 20% 40% 60% 100% Charlton Co. 43% 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 #05-12A August, 2005