The Economic Importance of Food and Fiber A Spotlight on Wilkes County, Georgia Prepared for Wilkes County Cooperative Extension October, 2007 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Wilkes County 10,318 10,678 10,468 10,687 10,597 10,951 10,184 10,961 12,388 2010 Trend CAED 2010 OPB Proj. 2006 Est. 2000 1990 1980 1970 1960 1950 15,084 15,944 1940 1930 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development). Population Change: 2000-2006 LOSS 0 – 6.4% 6.4 – 14.4% 14.4 – 34% 34 – 53.4% Avg. GA County = 9.1% GA = 14.4% US = 6.4% Wilkes Co. -2.0% Primary data source: U.S. Census Bureau (3/07) Percent of Land in Cropland & Forestland: 2002 23 – 40% 40 – 55% 55 – 70% 70 – 85% 85% or more GA Total = 78.5% GA Avg. Co. = 77.3% Metro Avg. Co. = 70.7% Nonmetro Avg. Co. = 82.6% Wilkes Co. 86.5% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2006 Property Tax Gross Digest Wilkes County Ag-PreferentialEnvironConserv 44.3% Residential 28.0% Heavy Equipment 0.1% Timber * 2.6% Mobile Home Industrial 1.6% Motor Vehicle 3.3% Public Utility 5.9% 2.6% Commercial 11.6% 40% Assessment Value of Property Gross Digest = $402,673,617 STATE Homestead & Property Exemptions = $73,488,380 Net M&O Digest = $329,185,237 Primary data source: GA Dept. of Revenue Value of exempt property = $36,113,035 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2006 % ResiDential % Agricultural % Commercial % Industrial WILKES 28.0 44.3 11.6 3.3 5.9 6.7 ELBERT 37.6 26.7 14.7 6.9 8.0 6.1 LINCOLN 54.0 29.2 5.2 0.4 6.4 4.7 MCDUFFIE 44.4 12.3 13.9 15.7 7.6 6.1 OGLETHORPE 37.2 46.2 4.4 0.7 6.7 4.8 TALIAFERRO 14.8 68.1 2.4 0.2 3.9 10.6 WARREN 18.3 45.8 4.7 12.5 5.6 13.1 Avg. GA Co. 41.9 22.5 12.8 7.6 7.4 7.7 County Primary data source: GA Dept. of Revenue % Motor % Vehicle Other Revenue : Expenditure Ratios $ of Revenue for Each $ of Expenditure $1.92 $2.86 Farm/Forest $1.01 $1.18 $2.70 $3.19 $1.17 Commercial $1.93 $1.25 $3.45 Residential $0.00 Cherokee Jones Carroll Oconee US Avg $0.64 $0.87 $0.83 $0.90 $0.87 $1.00 $2.00 $3.00 Dorfman, Jeffery, The Economics of Growth, Sprawl and Land Use Decisions (presentation), Dept. of Ag & Applied Economics, UGA, January 2004. $4.00 Agriculture in Georgia ¾ Georgia's 2006 Farm Gate Value was $10.4 billion. Adding the value of landscape services increased the total agricultural production value to $12.2 billion. ¾ Total food and fiber production and directly related businesses account for a $34.5 billion output impact on Georgia's $55 billion economy. Production Agriculture: 2006 Georgia Total Agricultural Production Value $12.2 Billion Landscape services Other Income 14.7% 5.3% Poultry & Eggs 36.1% Fruits & Nuts 2.5% Forestry & Products 5.5% Ornamental Horticulture 6.3% Vegetables 6.8% Livestock & Aquaculture 10.4% Row & Forage Crops 12.4% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $385 2006 Farm Gate Value by County in Millions of Dollars What We Know about Wilkes County ¾ 2006 Farm Gate Value in Wilkes Co. was $77.6 million. Adding $1 million of landscape services increased the total agricultural production value to $78.7 million. ¾ The highest value commodity group was poultry/eggs, representing 42.8% of the total agricultural production value. Wilkes County 2006 Agricultural Production Value 2006 Agricultural Production Orn Hort 2.3% Other 4.5% Landscape services 1.3% Forestry 15.1% Poultry-Eggs 42.8% 2006 Top Farm Gate Commodities Hunting Leases Hay 3.6% 5.4% Greenhouse Silage Horses 1.6% 0.9% Rest of 3.2% Commodities 1.7% Dairy 5.9% Broilers 43.4% Pork 7.8% LivestockAquaculture 27.7% Row-Forage crops 6.3% Beef 11.1% Timber 15.3% Total AG Value = $78.7 million Trends in Wilkes County: Number of Farms & Average Farm Size Number of Farms, Wilkes County 400 Wilkes Co. Georgia 300 A cres 349 284 218 200 100 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 49 54 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 19 1800 1600 1400 1200 1000 800 600 400 200 0 Average Farm Size Trends in Wilkes County: Land in Farms & Farms by Size Land in Farms Wilkes County Percent of Farms by Size, 2002 150 Wilkes Co. Acres X 1,000 300 Georgia 250 100 200 150 100 99.2 50 50 19 45 19 50 19 54 19 59 19 64 19 69 19 74 19 78 19 82 19 87 19 9 19 2 97 R 20 02 0 0 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 Wilkes County Number of Farms by Commodity 300 266 1987 1992 1997 2002 250 200 181 150 100 50 5 5 0 Beef Cows Hogs/Pigs Wheat for Grain Source: 1987-2002 (quinquennial) Censuses of Agriculture Hay How Do We Compare ? Georgia, Wilkes Co. and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $3,500 $3,000 $2,500 $3,017 $2,000 $1,500 $1,362 $965 $1,000 $500 $210 $782 $222 $1,122 $451 $197 $67 $468 $177 $0 ia g r o Ge s lke i W rt e Elb fie rpe oln f c o u D th Lin e l Mc Og Sources: 2002 Census of Agriculture and 2006 Farm Gate Value Report What We Did County Economy Modeled ¾ The Center for Agribusiness and Economic Development performed an analysis of the county’s economy, focusing on the role of food and fiber. 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? Wilkes County Economy Agriculture OUTPUT Output in $ Millions Percent Agriculture 78.658 14.7% Construction 16.042 3.0% Manufacturing 201.384 37.7% Trans-Utilities-Info 56.126 10.5% Trade 37.419 7.0% Finance-Ins-RE 17.748 3.3% Services 57.097 10.7% Government 69.098 13.% Total County Economic Output = $533.6 million Wilkes County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Millions Percent Agriculture + Direct 134.566 25.2% Construction 16.042 3.01% Manufacturing 145.475 27.3% Trans-Utilities-Info 56.126 10.5% Trade 37.419 7.0% Finance-Ins-RE 17.748 3.3% Services 57.097 10.7% Government 69.098 13.0% Total County Economic Output = $533.6 million An Economic Snapshot of Wilkes County ¾ How much of Wilkes County’s total economic output comes from food and fiber production? ¾ AG value alone of $78.7 million consisting of Farm Gate Value and landscape services comprises 14.7% of the county’s economy. ¾ AG plus directly related businesses (ex. logging, paper & paperboard mfg., etc.) comprise 25.2% of the county’s economy. Food and Fiber Production and Directly Related Manufacturing as % of Total Output 0 - 10% 10 - 20% 20 - 30% 30 - 50% 50 – 77% Wilkes Co. 25.2% 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 Wilkes County Agriculture IMPACT Agriculture Construction Direct $ Millions 78.658 0 Manufacturing 0 Trans-Utilities-Info 0 Trade 0 Finance-Ins-RE 0 Services 0 Government 0 Indirect $ Millions 0 .100 .394 3.355 3.227 1.618 4.087 2.974 78.658 15.756 Total Total Impact of Production AG = $94.4 million—17.7% of total economy Wilkes County Production Agriculture + Directly Related Businesses IMPACT Direct $ Millions Indirect $ Millions 104.453 0 Construction 0 .166 Manufacturing 30.113 2.125 Trans-Utilities-Info 0 6.097 Trade 0 5.603 Finance-Ins-RE 0 2.808 Services 0 6.438 Government 0 4.579 134.566 27.816 Agriculture + Direct Total Total Impact of AG + Directly Related=$162.4 million—30.4% of total economy Wilkes County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 956 0 Construction 0 2 Manufacturing 0 13 Trans-Utilities-Info 0 46 Trade 0 80 Finance-Ins-RE 0 20 Services 0 136 Government 0 7 Agriculture + Direct Total Impact of AG + Directly Related Employment = 1,261 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $134.6 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $5.6 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. Wilkes County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $162.4 million. ¾ The total output is $533.6 million. ¾ Thus, food and fiber (directly and indirectly) account for 30.4% of the total output. Food and Fiber Production and Directly Related Manufacturing IMPACT as % of Total Output 0 - 10% 10 - 25% 25 - 40% 40 - 60% 60 - 84% Wilkes Co. 30.4% 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 #0722A October, 2007