The Economic Importance of Food and Fiber A Spotlight on Hart County, Georgia Prepared for: Hart County Cooperative Extension Service April, 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 2003 Farm Gate Value of agricultural production was $9.9 billion. ¾ Total food and fiber production and directly related businesses account for $29.5 billion of Georgia's $544 billion economy. Production Agriculture: 2003 GA Farm Gate Total Value $9.9 Billion Cotton 19.6% Broilers 10.9% Rest of Commodities 38.7% Watermelon Timber 2.0% Container Corn 2.6% Nursery 2.2% 2.0% Peanuts 10.4% Sweet Corn 3.6% Beef 3.0% Tomato 5.0% 0 - 20 20 - 45 45 - 80 80 - 125 125 – 258 Farm Gate Value in $ Millions What We Know about Hart County ¾ Agricultural production in Hart County generated $237.5 million in 2004. ¾ The highest value commodity group was poultry/eggs, representing 83.6% of the total agricultural production value. Hart County 2004 Agricultural Production Value 2004 Agricultural Production and Landscape Services LivestockAquaculture 7.5% Row-Forage crops 1.6% Forestry 0.2% Vegetables Orn Hort All Other 4.6% 0.4% 0.4% Landscape Svcs. 1.7% 2004 Top Farm Gate Commodities Breeder Pullet Greenhouse Container Unit 1.0% Nursery 1.0% Pork-Finishing 1.4% only Dairy 1.8% Field Nursery 2.2% 2.2% Beef cows 2.6% Layers-eggs 26.5% Poultry-Eggs 83.6% Total AG Value = $237.5 million Beef stockers 0.7% All others 2.8% Broilers 57.8% Trends in Hart County: Number of Farms & Average Farm Size Number of Farms, Hart County Average Farm Size 300 2500 Hart Co. Georgia 2000 A cres 200 1500 100 1000 500 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 Hart County: Land in Farms & Farms by Size Percent of Farms by Size, 2002 50 160 140 120 100 80 60 40 20 0 Hart Co. Georgia 40 30 20 10 9 19 2 97 R 20 02 87 19 82 19 78 19 74 19 69 19 64 19 59 19 54 19 19 19 19 50 0 45 Acres X 1,000 Land in Farms Hart 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 Hart County Number of Farms by Commodity 350 1992 1997 2002 300 250 200 150 100 50 0 Beef cows Broilers sold Source: 1992-2002 (quinquennial) Censuses of Agriculture Hay How Do We Compare ? Georgia, Hart and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $3,500 $3,000 $2,500 $3,145 $3,257 $2,000 $2,704 $2,036 $1,500 $930 $918 $1,000 $500 $375 $200 $328 $271 $135 $167 $0 Ge ia g r o rt a H Fra li nk n Ma on s i d rt e b El S Sources: 2002 Census of Agriculture and 2003 Farm Gate Value Report n he p te s 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? Hart County Economy Production Agriculture-OUTPUT Agriculture Mining Construction Manufacturing Trans/Public Util Trade Fin/Ins/Real Est Services Government Total Output in $ Millions Percent 237.476 7.336 53.706 576.992 74.543 50.487 31.741 146.680 88.917 18.7 0.6 4.2 45.5 5.9 4.0 2.5 11.6 7.0 $1.268 billion -- Hart County Economy Production Agriculture + Directly Related Businesses Agriculture + Direct Mining Construction Manufacturing Trans/Public Util Trade Finance/Ins/RE Services Government Total Output in $ Millions Percent 240.932 7.336 53.706 573.536 74.543 50.487 31.741 146.680 88.917 19.0 0.6 4.2 45.2 5.9 4.0 2.5 11.6 7.0 $1.268 billion -- An Economic Snapshot of Hart County ¾ How much of Hart County’s total economic output comes from food and fiber production? ¾ AG value alone of $237.5 million consisting of Farm Gate Value and landscaping services comprises 18.7% of the county’s economy. ¾ AG plus directly related businesses (ex. animal food mfg., farm mach. mfg., etc.) comprise 19% 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% Hart Co. 19% 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 Hart County Production Agriculture IMPACT Agriculture Mining Construction Manufacturing Utilities Trade Fin/Ins/Real Est Services Government Total Direct $ (millions) Indirect $ (millions) 237.476 0 0 0 0 0 0 0 0 18.875 0.017 0.616 2.743 6.393 4.634 3.587 10.308 4.408 $269.5 million – 21.3% of total economy Hart County Agriculture and Directly Related Businesses IMPACT Direct $ (millions) Agriculture + Direct Mining Construction Manufacturing Utilities Trade Fin / Ins / Real Est Services Government Total Indirect $ (millions) 240.932 18.884 0 0.029 0 0.626 0 2.902 0 6.487 0 4.735 0 3.632 0 10.498 0 4.455 $293.2 million – 23.1% of total economy Hart County Production Agriculture + Directly Related Industries Employment IMPACT Agriculture + Direct Mining Construction Manufacturing Utilities Trade Fin/Ins/Real Est Services Government Total Employment Direct Indirect 1,673 0 0 0 0 0 0 0 0 220 0 11 15 31 100 50 216 6 2,322 What These Numbers Mean: A Brief Explanation ¾ Direct impact is $240.9 million. This includes food and fiber production, processing and directly-related manufacturing. ¾ Indirect impact from the Trade sector is $4.7 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. Hart County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $293.2 million. ¾ The total output is $1.268 billion. ¾ Thus, food and fiber (directly and indirectly) account for 23.1% 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% Hart Co. 23.1% Contact Information Prepared by: Sue Boatright and Dave Waters 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 #05-08A April, 2005