The Economic Importance of Food and Fiber Prepared for Wilkes County Cooperative Extension

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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
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