The Economic Importance of Food and Fiber A Spotlight on Gilmer County, Georgia Prepared for Gilmer County Cooperative Extension March, 2008 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Gilmer County 31,870 31,752 28,175 2010 Trend CAED 2010 OPB Proj. 2006 Est. 23,456 2000 13,368 11,110 8,956 8,922 9,963 1990 1980 1970 1960 1950 9,001 7,344 1940 1930 0 5,000 10,000 15,000 20,000 25,000 30,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development). 35,000 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% Gilmer Co. 20.1% 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% Gilmer Co. 90.2% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2006 Property Tax Gross Digest Gilmer County Residential 55.8% Timber * 0.1% Ag-PreferentialEnviron-Conserv 24.5% Mobile Home 0.7% Motor Vehicle 4.9% Public Utility 2.0% Commercial 40% Assessment Value of Property 10.0% Gross Digest = $1,326,051,110 Industrial 2.0%STATE Homestead & Property Exemptions = $173,000,955 Net M&O Digest = $1,153,050,155 Primary data source: GA Dept. of Revenue Value of exempt property = $142,522,629 * 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 GILMER 55.8 24.5 10.0 2.0 4.9 2.8 DAWSON 62.4 16.8 14.2 0.3 4.7 1.6 FANNIN 72.3 8.7 9.4 0.7 6.6 2.2 GORDON 37.4 14.5 17.8 20.1 7.6 2.6 LUMPKIN 44.5 31.6 12.9 2.4 5.6 3.0 MURRAY 42.9 9.2 14.6 18.4 7.6 7.3 PICKENS 61.7 13.2 13.1 2.3 6.2 3.4 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 Gilmer County ¾ 2006 Farm Gate Value in Gilmer Co. was $189.6 million. Adding $891 thousand of landscape services increased the total agricultural production value to $190.5 million. ¾ The highest value commodity group was poultry-eggs, representing 93.2% of the total agricultural production value. Gilmer County 2006 Agricultural Production Value 2006 Agricultural Production VegetablesOrn Hort Fruits-Nuts Livestock- Forestry 0.2% 0.4% 1.0% Aquaculture 0.3% Other 3.4% 0.3% Landscape Row-Forage services crops 0.5% 0.6% 2006 Top Farm Gate Commodities Horses Apples Hay Ag Tourism 0.3% 1.0% 1.0% 0.4% Timber Beef Dairy 0.3% Rest of Breeder Pullet 1.3% 1.1% commodities Unit 1.0% Layers 4.8% 6.2% Poultry-Eggs 93.2% Total AG Value = $190.5 million Broilers 82.7% Trends in Gilmer County: Number of Farms & Average Farm Size Number of Farms, Gilmer County Average Farm Size 300 1400 Gilmer Co. Georgia 1200 200 A cres 1000 800 600 82 100 303 200 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 54 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 49 0 19 400 218 Trends in Gilmer County: Land in Farms & Farms by Size Land in Farms Gilmer County Percent of Farms by Size, 2002 120 Acres X 1,000 140 Gilmer Co. 100 Georgia 120 100 80 80 60 60 40 40 24.7 20 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 20 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 Gilmer County Number of Farms by Commodity 160 140 1987 1992 1997 2002 138 120 102 100 77 80 60 40 22 20 10 0 Beef cows Broilers sold Layers 20+ wks Source: 1987-2002 (quinquennial) Censuses of Agriculture Corn for grain Hay How Do We Compare ? Georgia, Gilmer and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $8,000 $6,000 $7,668 $4,000 $3,353 $2,982 $957 $1,764 $2,000 $209 $626 $131 $272 $240 $2,308 $1,840 $219 $252 $0 ia g r o Ge in er ay ns on on r n s e d r m r n l k w Gi Fa Mu Go Pic Da 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? Gilmer County Economy Agriculture OUTPUT Output in $ Millions 190.472 3.369 110.429 726.054 120.180 119.680 105.545 188.671 139.801 Percent 11.2 .2 6.5 42.6 7.1 7.0 6.2 11.1 8.2 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $1.7 Billion Gilmer County Economy Agriculture + Directly Related Businesses OUTPUT Agriculture + Direct Output in $ Millions 565.105 3.369 110.429 351.421 120.180 119.680 105.545 188.671 139.801 Percent 33.2 .2 6.5 20.6 7.1 7.0 6.2 11.1 8.2 Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $1.7 Billion An Economic Snapshot of Gilmer County ¾ How much of Gilmer County’s total economic output comes from food and fiber production? ¾ AG value alone of $190.5 million consisting of Farm Gate Value and landscape services comprises 11.2% of the county’s economy. ¾ AG plus directly related businesses (ex. poultry processing, logging, etc.) comprise 33.2% 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% Gilmer Co. 33.2% 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 Gilmer County Agriculture IMPACT Direct $ Millions 190.472 0 0 0 0 0 0 0 0 190.472 Indirect $ Millions 0 .0003 .497 2.356 6.724 5.819 3.524 9.292 4.543 32.755 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Total Impact of Production AG = $223.2 million—13% of total economy Gilmer County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions 195.559 0 0 369.547 0 0 0 0 0 565.105 Indirect $ Millions 0 .0009 2.206 67.787 17.828 15.902 11.908 24.218 11.367 151.217 Total Impact of AG + Directly Related = $716.3 million--42% of total economy Gilmer County Production Agriculture + Directly Related Industries Employment IMPACT Direct 2,118 0 0 0 0 0 0 0 0 Indirect 0 0 21 311 95 176 73 395 10 Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Impact of AG + Directly Related Employment = 3,199 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $195.6 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $15.9 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. Gilmer County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $716.3 million. ¾ The total output is $1.7 billion. ¾ Thus, food and fiber (directly and indirectly) account for 42% 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% Gilmer Co. 42% 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 #0810A March, 2008