The Economic Importance of Food and Fiber A Spotlight on Crisp County, Georgia Prepared for Crisp 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 Crisp County 22,301 21,983 22,051 21,996 20,011 19,489 18,087 17,768 17,663 2010 Trend CAED 2010 OPB Proj. 2006 Est. 2000 1990 1980 1970 1960 1950 17,540 17,343 1940 1930 0 5,000 10,000 15,000 20,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development). 25,000 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% Crisp Co. 0.3% 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% Crisp Co. 80.1% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2006 Property Tax Gross Digest Crisp County Ag-PreferentialEnviron-Conserv 15.4% Residential 38.4% Commercial 19.6% Timber * 0.4% Mobile Home 2.0% Motor Vehicle 7.2% Industrial 15.6% 40% Assessment Value of Property Gross Digest = $564,000,116 Public Utility 1.3% STATE Homestead & Property Exemptions = $65,129,389 Net M&O Digest = $498,870,727 Primary data source: GA Dept. of Revenue Value of exempt property = $47,279,744 * 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 CRISP 38.4 15.4 19.6 15.6 7.2 3.7 DOOLY 25.6 37.4 11.0 11.7 7.9 6.5 LEE 55.6 19.1 12.2 0.9 9.0 3.1 SUMTER 39.8 22.9 15.3 8.4 8.3 5.4 TURNER 20.9 42.3 18.9 3.4 7.5 7.0 WILCOX 23.3 49.3 7.0 0.0 9.0 11.3 WORTH 33.2 38.4 9.0 3.1 9.3 7.0 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 Crisp County ¾ 2006 Farm Gate Value in Crisp Co. was $70.7 million. Adding $661 thousand of landscape services increased the total agricultural production value to $71.4 million. ¾ The highest value commodity group was row & forage crops , representing 36.6% of the total agricultural production value. Crisp County 2006 Agricultural Production Value 2006 Agricultural Production Fruits-Nuts 4.5% Other 12.1% Landscape services 0.9% 2006 Top Farm Gate Commodities Rest of commodities AG Tourism 20.2% 1.3% Cantaloupe 1.7% Poultry-Eggs 8.7% Orn Hort 1.7% Vegetables 23.8% Row-Forage crops 36.6% Forestry 4.1% LivestockAquaculture 7.6% Cotton 27.3% Beef 3.1% Pork 3.6% Timber 3.6% Pecans 4.6% Peanuts Broilers 6.2% 8.8% Total AG Value = $71.4 million Watermelons 19.7% Trends in Crisp County: Number of Farms & Average Farm Size Number of Farms, Crisp County Average Farm Size 700 1400 1200 500 A cres 1000 800 600 466 400 300 218 200 223 200 100 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 54 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 49 0 19 400 Crisp Co. Georgia 600 Trends in Crisp County: Land in Farms & Farms by Size 200 180 160 140 120 100 80 60 40 20 0 Percent of Farms by Size, 2002 70 Crisp Co. Georgia 60 50 103.9 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 Crisp County 40 30 20 10 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 Crisp County Number of Farms by Commodity 1987 1992 1997 2002 120 100 80 65 59 61 60 42 37 40 32 20 0 Beef cows Cotton Hay Peanuts Source: 1987-2002 (quinquennial) Censuses of Agriculture Veggies Orchards How Do We Compare ? Georgia, Crisp and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $1,000 $800 $957 $600 $681 $395 $587 $700 $706 $400 $200 $209 $317 $308 $339 $309 $244 $0 ia g r o Ge sp i r C oly o D e Le er t m Su Sources: 2002 Census of Agriculture and 2006 Farm Gate Value Report er n r Tu 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? Crisp County Economy Agriculture OUTPUT Output in $ Millions Percent Agriculture 71.393 5.8 Construction 55.519 4.5 Manufacturing 488.193 39.7 Trans-Utilities-Info 49.595 4.0 Trade 180.918 14.7 Finance-Ins-RE 78.443 6.4 Services 174.421 14.2 Government 131.365 10.7 Total County Economic Output = $1.23 billion Crisp County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Millions Percent Agriculture + Direct 338.936 27.6 Construction 55.519 4.5 Manufacturing 220.650 17.9 Trans-Utilities-Info 49.595 4.0 Trade 180.918 14.7 Finance-Ins-RE 78.443 6.4 Services 174.421 14.2 Government 131.365 10.7 Total County Economic Output = $1.23 billion An Economic Snapshot of Crisp County ¾ How much of Crisp County’s total economic output comes from food and fiber production? ¾ AG value alone of $71.4 million consisting of Farm Gate Value and landscape services comprises 5.8% of the county’s economy. ¾ AG plus directly related businesses (ex. pesticide/chemical mfg., sawmills, etc.) comprise 27.6% 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% Crisp Co. 27.6% 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 Crisp County Agriculture IMPACT Direct $ Millions Indirect $ Millions 71.393 0 Construction 0 .204 Manufacturing 0 7.101 Trans-Utilities-Info 0 2.321 Trade 0 6.803 Finance-Ins-RE 0 4.978 Services 0 6.033 Government 0 3.871 71.393 31.311 Agriculture Total Total Impact of Production AG = $102.7 million—8.4% of total economy Crisp County Production Agriculture + Directly Related Businesses IMPACT Direct $ Millions Indirect $ Millions 87.252 0 Construction 0 1.182 Manufacturing 251.684 35.623 Trans-Utilities-Info 0 17.488 Trade 0 36.571 Finance-Ins-RE 0 14.005 Services 0 19.730 Government 0 8.973 338.936 133.572 Agriculture + Direct Total Total Impact of AG+Directly Related = $472.5 million—38.4% of total economy Crisp County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 1,238 0 Construction 0 12 Manufacturing 0 49 Trans-Utilities-Info 0 144 Trade 0 320 Finance-Ins-RE 0 90 Services 0 345 Government 0 9 Agriculture + Direct Total Impact of AG + Directly Related Employment = 2,209 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $87.3 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $36.6 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. Crisp County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $472.5 million. ¾ The total output is $1.23 Billion. ¾ Thus, food and fiber (directly and indirectly) account for 38.4% 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% Crisp Co. 38.4% Contact Information Prepared by: John McKissick, 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 #0811A March, 2008