The Economic Importance of Food and Fiber A Spotlight on Charlton County, Georgia Prepared for: Charlton County Cooperative Extension November, 2006 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Agriculture in Georgia ¾ Georgia's 2005 Farm Gate Value was $10.6 billion. Adding the value of landscape services increased the total agricultural production value to $12.3 billion. ¾ Total food and fiber production and directly related businesses account for a $52.7 billion output impact on Georgia's $614 billion economy. Production Agriculture: 2005 Georgia Total Agricultural Production Value $12.3 Billion Poultry & Eggs 36.7% Landscape services 14.0% Other Income 5.4% Fruits & Nuts 2.2% Forestry & Products 5.7% Ornamental Horticulture 7.3% Vegetables 5.2% Livestock & Aquaculture 10.6% Row & Forage Crops 13.0% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $317 2005 Farm Gate Value by County in Millions of Dollars What We Know about Charlton County ¾ 2005 Farm Gate Value in Charlton Co. was $20.6 million. Adding $450 thousand of landscape services increased the total agricultural production value to $21.1 million. ¾ The highest value commodity group was Forestry, representing 49.7% of the total agricultural production value. Charlton County 2005 Agricultural Production Value 2005 Agricultural Production Veges-FruitsNuts 0.3% Orn Hort 5.4% Landscape Other services 11.5% 2.1% 2005 Top Farm Gate Commodities Poultry-Eggs 21.6% Row-Forage crops 2.0% Forestry 49.7% LivestockAquaculture 7.4% Field Nursery Horses 1.5% Hay 1.4% Container 2.8% Nursery 3.1% Beef 3.4% Breeder Pullet Unit 5.6% Broilers 6.5% Layers Hunting 9.9% Leases 10.7% Total AG Value = $21.1 million Rest of Commodities 4.8% Timber 50.3% Trends in Charlton County: Number of Farms & Average Farm Size Number of Farms, Charlton County Average Farm Size 500 300 Charlton Co. Georgia 400 A cres 200 101 100 300 218 147 200 100 Source: 1945-2002 (quinquennial) Censuses of Agriculture R 02 20 97 92 19 19 87 19 82 19 78 19 74 19 69 19 64 19 59 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 Acres X 1,000 Land in Farms Charlton County Percent of Farms by Size, 2002 40 80 70 60 50 40 30 20 10 0 Charlton Co. Georgia 30 20 14.89 10 9 19 2 97 R 20 02 87 19 82 19 78 19 74 19 69 19 64 19 59 19 54 19 50 19 19 19 45 0 1-9 acres Source: 1945-2002 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 acres 500-999 acres 1000+ acres Trends in Charlton County Number of Farms by Commodity 70 1987 1992 1997 2002 60 50 49 40 27 30 20 9 10 4 3 0 Beef Cows Hogs and Pigs Corn Source: 1987-2002 (quinquennial) Censuses of Agriculture Tobacco Hay How Do We Compare ? Georgia, Charlton and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $1,400 $1,200 $1,000 $800 $1,224 $1,386 $985 $782 $600 $749 $688 $553 $400 $200 $0 $215 $204 $94 $181 ia ey en on l g t t d r l o m ar an r h Ge Ca B C $318 $126 ch n i Cl ce r e Pi Sources: 2002 Census of Agriculture and 2005 Farm Gate Value Report $151 re a W 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? Charlton County Economy Agriculture OUTPUT Output in $ Millions Percent Agriculture 21.083 7.3 Construction 8.307 2.9 Manufacturing 118.419 40.9 Trans-Utilities-Info 10.208 3.5 Trade 17.699 6.1 Finance-Ins-RE 14.439 5.0 Services 44.740 15.5 Government 54.667 18.9 Total County Economic Output = $289.6 million Charlton County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Millions Percent Agriculture + Direct 92.514 31.9 Construction 8.307 2.9 Manufacturing 46.988 16.2 Trans-Utilities-Info 10.208 3.5 Trade 17.699 6.1 Finance-Ins-RE 14.439 5.0 Services 44.740 15.5 Government 54.667 18.9 Total County Economic Output = $289.6 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 $21.1 million consisting of Farm Gate Value and landscape services comprises 7.3% of the county’s economy. ¾ AG plus directly related businesses (ex. logging, sawmills, etc.) comprise 31.9% 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% Charlton Co. 31.9% 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 Agriculture IMPACT Direct $ Millions Indirect $ Millions 21.083 0 Construction 0 0.022 Manufacturing 0 0.161 Trans-Utilities-Info 0 0.451 Trade 0 0.678 Finance-Ins-RE 0 0.420 Services 0 0.868 Government 0 1.049 21.083 3.650 Agriculture Total Total Impact of Production AG = $24.7 million – 8.5% of total economy Charlton County Production Agriculture + Directly Related Businesses IMPACT Direct $ Millions Indirect $ Millions 92.514 0 Construction 0 0.054 Manufacturing 0 2.470 Trans-Utilities-Info 0 1.824 Trade 0 2.009 Finance-Ins-RE 0 1.620 Services 0 2.751 Government 0 2.466 92.514 13.193 Agriculture + Direct Total Total Impact of AG + Directly Related=$105.7 million—36.5% of total economy Charlton County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 936 0 Construction 0 1 Manufacturing 0 11 Trans-Utilities-Info 0 15 Trade 0 30 Finance-Ins-RE 0 11 Services 0 58 Government 0 2 Agriculture + Direct Total Impact of AG + Directly Related Employment = 1,063 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $92.5 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $2 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 $105.7 million. ¾ The total output is $289.6 million. ¾ Thus, food and fiber (directly and indirectly) account for 36.5% 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% Charlton Co. 36.5% 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 #06-26A November, 2006