The Economic Importance of Food and Fiber A Spotlight on White County, Georgia Prepared for White County Cooperative Extension September, 2007 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population White County 2010 Trend CAED 27,871 29,343 24,738 OPB Proj. 2006 Est. 19,944 2000 13,006 10,120 7,742 6,935 5,951 1990 1980 1970 1960 1950 6,417 6,056 1940 1930 0 5,000 10,000 15,000 20,000 25,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development). 30,000 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% White Co. 24.0% 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% White Co. 81.6% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2006 Property Tax Gross Digest White County Residential 58.2% Heavy Equipment 0.1% Ag-PreferentialEnvironConserv 22.2% Timber * 0.0% Mobile Home 0.9% Motor Vehicle 6.6% Public Utility 2.4% Primary data source: GA Dept. of Revenue Commercial 8.6% Industrial 1.1% 40% Assessment Value of Property Gross Digest = $984,135,959 STATE Homestead & Property Exemptions = $88,018,779 Net M&O Digest = $896,117,180 Value of exempt property = $155,416,660 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2006 County % ResiDential % Agri- % Com- % In- % Motor % cultural mercial dustrial Vehicle Other WHITE 58.2 22.2 8.6 1.1 6.6 3.4 BANKS 36.3 36.6 12.6 3.8 6.7 4.0 HABERSHAM 57.4 15.0 11.4 4.9 6.6 4.8 HALL 56.3 6.2 17.0 10.9 7.2 2.4 LUMPKIN 44.5 31.6 12.9 2.4 5.6 3.0 TOWNS 76.9 8.8 8.6 0.1 3.7 1.8 UNION 70.4 13.7 9.1 0.7 4.5 1.6 Avg. GA Co. 41.9 22.5 12.8 7.6 7.4 7.7 Primary data source: GA Dept. of Revenue 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 White County ¾ 2006 Farm Gate Value in White Co. was $81.5 million. Adding $677 thousand of landscape services increased the total agricultural production value to $82.2 million. ¾ The highest value commodity group was poultry/eggs, representing 86.5% of the total agricultural production value. White County 2006 Agricultural Production Value 2006 Agricultural Production Vegetables 0.4% LivestockForestry Aquaculture 0.5% 8.3% Row-Forage crops 1.9% Orn Hort 0.4% Fruits-Nuts 0.4% Other 0.7% Landscape services 0.8% 2006 Top Farm Gate Commodities Hay Dairy Breeder Horses 1.0% 0.9% Pullet Unit 2.1% 2.1% Pork Beef 2.1% 2.7% Silage 0.8% Timber 0.5% Rest of Commodities 2.7% Layers 15.3% Poultry-Eggs 86.5% Total AG Value = $82.2 million Broilers 69.9% Trends in White County: Number of Farms & Average Farm Size Number of Farms, White County Average Farm Size 300 1200 White Co. Georgia 1000 218 200 Acres 800 600 200 81 100 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 19 400 376 Trends in White County: Land in Farms & Farms by Size 90 80 70 60 50 40 30 20 10 0 Percent of Farms by Size, 2002 50 White Co. Georgia 40 30 30.3 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 Acres X 1,000 Land in Farms White County 20 10 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 White County Number of Farms by Commodity 198 200 180 148 160 140 1987 1992 1997 2002 120 100 80 60 33 40 14 20 0 Beef Cows Corn for Grain/Seed Source: 1987-2002 (quinquennial) Censuses of Agriculture Hay Layers and Pullets How Do We Compare ? Georgia, White and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $7,000 $6,000 $5,000 $6,756 $4,000 $3,511 $3,000 $2,692 $2,000 $1,000 $4,460 $1,943 $957 $210 $217 $330 $503 $330 $166 $0 ia g r o Ge ite h W m ks a n h Ba rs e b Ha ll a H Sources: 2002 Census of Agriculture and 2006 Farm Gate Value Report kin p m Lu 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? White County Economy Agriculture OUTPUT Output in $ Millions Percent Agriculture 82.209 10.2% Construction 117.198 14.5% Manufacturing 167.667 20.7% Trans-Utilities-Info 27.798 3.4% Trade 85.555 10.6% Finance-Ins-RE 56.778 7.0% Services 147.170 18.2% Government 123.843 15.3% Total County Economic Output = $808.2 million White County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Millions Percent 111.248 13.8% 0.000 0.0% Construction 117.198 14.5% Manufacturing 138.627 17.2% Trans-Utilities-Info 27.798 3.4% Trade 85.555 10.6% Finance-Ins-RE 56.778 7.0% Services 147.170 18.2% Government 123.843 15.3% Agriculture + Direct Mining Total County Economic Output = $808.2 million An Economic Snapshot of White County ¾ How much of White County’s total economic output comes from food and fiber production? ¾ AG value alone of $82.2 million consisting of Farm Gate Value and landscape services comprises 10.2% of the county’s economy. ¾ AG plus directly related businesses (ex. sawmills, flour milling, etc.) comprise 13.8% 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% White Co. 13.8% 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 White County Agriculture IMPACT Direct $ Millions Indirect $ Millions 82.209 0.000 Construction 0 0.219 Manufacturing 0 0.408 Trans-Utilities-Info 0 1.573 Trade 0 2.473 Finance-Ins-RE 0 2.242 Services 0 4.665 Government 0 2.632 82.209 14.213 Agriculture Total Total Impact of Production AG = $96.4 million—11.9% of total economy White County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions Indirect $ Millions 85.638 0.000 25.610 0.000 0.000 0.000 0.000 0.000 111.248 0.000 0.282 1.749 2.512 3.459 2.863 6.097 3.219 20.180 Total Impact of AG + Directly Related=$131.4 million—16.3% of total economy White County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 505 0 Construction 0 3 Manufacturing 0 8 Trans-Utilities-Info 0 20 Trade 0 51 Finance-Ins-RE 0 20 Services 0 122 Government 0 4 Agriculture + Direct Total Impact of AG + Directly Related Employment = 733 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $111 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $3.5 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. White County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $131.4 million. ¾ The total output is $808.2 million. ¾ Thus, food and fiber (directly and indirectly) account for 16.3% 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% White Co. 16.3% 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 Area Report #0717A September, 2007