The Economic Importance of Food and Fiber A Spotlight on Taylor County, Georgia Prepared for: Taylor County Cooperative Extension October, 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 Taylor County ¾ 2005 Farm Gate Value in Taylor Co. was $43.1 million. Adding $4.1 million of landscape services increased the total agricultural production value to $47.2 million. ¾ The highest value commodity group was poultry/eggs, representing 39.4% of the total agricultural production value. Taylor County 2005 Agricultural Production Value 2005 Agricultural Production Fruits-Nuts 7.0% Landscape services 8.7% Other 11.5% Layers 1.7% Rest of Commodities 11.8% Hay 1.0% Watermelon 2.1% Orn Hort 4.0% Vegetables 2.4% Turfgrass 3.2% Forestry 8.2% LivestockAquaculture 8.3% 2005 Top Farm Gate Commodities Poultry-Eggs 39.4% Row-Forage crops 10.5% Peaches 7.2% Beef 7.4% Cotton 7.5% Hunting Leases 7.9% Total AG Value = $47.2 million Timber 8.7% Broilers 41.4% Trends in Taylor County: Number of Farms & Average Farm Size Number of Farms, Taylor County Average Farm Size 500 1400 400 1000 300 A cres 1200 800 Taylor Co. Georgia 328 218 200 600 227 200 100 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 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 49 0 19 400 Trends in Taylor County: Land in Farms & Farms by Size Land in Farms Taylor County Percent of Farms by Size, 2002 50 Taylor Co. Georgia Acres X 1,000 250 40 200 30 150 100 74.5 50 20 10 0 9 19 2 97 R 20 02 19 87 19 82 19 78 74 19 69 19 64 19 59 19 19 54 19 50 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 Taylor County Number of Farms by Commodity 120 106 1987 1992 1997 2002 100 85 80 60 40 20 11 10 0 Cattle and Calves Inv Broilers and Other Chickens Sold Source: 1987-2002 (quinquennial) Censuses of Agriculture Cotton Hay How Do We Compare ? Georgia, X and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 $ Per Acre $1,435 $1,018 $1,087 $985 $749 $578 $741 $716 $262 $456 $215 $190 $232 $214 $182 $228 $74 $115 ia ot ch hley on on lor ford acon i g b s a y l r r e p a a o w P T T U M Sc Ma a Ge r C Sources: 2002 Census of Agriculture and 2005 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? Taylor County Economy Agriculture OUTPUT Output in $ Millions 47.171 2.935 9.538 55.528 75.744 15.439 12.465 37.675 46.433 Percent 15.6 1.0 3.1 18.3 25.0 5.1 4.1 12.4 15.3 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $302.9 million Taylor County Economy Agriculture + Directly Related Businesses OUTPUT Agriculture + Direct Output in $ Millions 58.549 2.935 9.538 44.150 75.744 15.439 12.465 37.675 46.433 Percent 19.3 1.0 3.1 14.6 25.0 5.1 4.1 12.4 15.3 Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $302.9 million An Economic Snapshot of Taylor County ¾ How much of Taylor County’s total economic output comes from food and fiber production? ¾ AG value alone of $47.2 million consisting of Farm Gate Value and landscape services comprises 15.6% of the county’s economy. ¾ AG plus directly related businesses (ex. logging, ag support services) comprise 19.3% 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% Taylor Co. 19.3% 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 Taylor County Agriculture IMPACT Direct $ Millions 47.171 0 0 0 0 0 0 0 0 47.171 Indirect $ Millions 0.000 0.000 0.060 0.022 2.511 1.570 1.041 1.961 2.386 9.553 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Total Impact of Production AG=$56.7 million—18.7% of total economy Taylor County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions 58.549 0 0 0 0 0 0 0 0 58.549 Indirect $ Millions 0.000 0.000 0.067 0.025 2.841 1.810 1.260 2.448 2.680 11.133 Total Impact of AG + Directly Related = $69.7 million--23% of total economy Taylor County Production Agriculture + Directly Related Industries Employment IMPACT Direct 728 0 0 0 0 0 0 0 0 Indirect 0 0 1 0 16 23 10 61 3 Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Impact of AG + Directly Related Employment = 842 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $58.5 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $1.8 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. Taylor County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $69.7 million. ¾ The total output is $302.9 million. ¾ Thus, food and fiber (directly and indirectly) account for 23% 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% Taylor Co. 23% 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 #06-22A October, 2006