The Economic Importance of Food and Fiber A Spotlight on Habersham County, Georgia Prepared for: Habersham County Cooperative Extension March, 2006 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Habersham County 2010 Trend CAED 43,769 2010 Proj. OPB 44,362 38,978 35,902 2004 Est. 2000 27,621 25,020 1990 1980 20,691 1970 18,116 16,553 1960 1950 14,771 12,748 1940 1930 0 9,000 18,000 27,000 36,000 45,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development); OPB (State Office of Planning & Budget). Population Change: 2000-2004 LOSS 0 – 4.3% 4.3 – 7.8% 7.8 – 15.7% 15.7 – 34% GA = 7.8% US = 4.3% Primary data source: U.S. Census Bureau Habersham Co. 8.6% Percent of Land in Cropland & Forestland: 2002 23 – 40% 40 – 55% 55 – 70% 70 – 85% 85% or more Habersham Co. = 77.6% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 GA Total = 78.5% GA Avg. Co. = 77.3% Metro Avg. Co. = 70.7% Nonmetro Avg. Co. = 82.6% Components of 2004 Property Tax Gross Digest Habersham County Residential 55.1% Heavy Equip. 0.01% Ag-PreferentialEnv-Conserv 11.1% Timber * 0.03% Mobile Home 1.2% Commercial 11.7% Public Utility Industrial Motor Vehicle 5.0% 3.8% 7.6% 40% Assessment Value of Property Gross Digest = $1,179,998,933 Net M&O Digest = $1,059,172,677 STATE Homestead & Property Exemptions = $120,826,256 Primary data source: GA Dept. of Revenue Value of exempt property = $133,285,188 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2004 County % Residential HABERSHAM 55.1 15.6 11.7 5.0 7.6 5.0 BANKS 35.4 31.2 14.4 5.4 9.1 4.5 HALL 55.4 6.8 16.5 10.8 8.1 2.5 RABUN 57.1 7.4 6.3 3.6 3.7 21.9 STEPHENS 52.1 4.7 13.4 15.3 9.0 5.6 TOWNS 75.8 4.4 10.7 0.2 6.2 2.8 WHITE 54.6 23.3 9.2 1.4 8.0 3.6 Avg. GA Co. 40.7 20.8 13.2 7.9 9.0 8.4 Primary data source: GA Dept. of Revenue % Agri- % Com- % In% Motor cultural mercial dustrial 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 2004 Farm Gate Value was $10.3 billion. Adding the value of landscape services increased the total agricultural production value to $11.2 billion. ¾ Total food and fiber production and directly related businesses account for a $49.3 billion impact on Georgia's $557 billion economy. Production Agriculture: 2004 Georgia Total Agricultural Production Value $11.2 Billion Poultry & Eggs 41.5% Landscape services Other 10.2% Income 4.1% Fruits & Nuts 2.0% Forestry & Products 5.3% Ornamental Horticulture 5.7% Vegetables 6.3% Livestock & Aquaculture 11.4% Row & Forage Crops 13.4% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $325 2004 Farm Gate Value by County in Millions of Dollars What We Know about Habersham County ¾ 2004 Farm Gate Value in Habersham Co. was $274.5 million. Adding $2.7 million of landscape services increased the total agricultural production value to $277.2 million. ¾ The highest value commodity group was poultry/eggs, representing 90% of the total agricultural production value. Habersham County 2004 Agricultural Production Value 2004 Agricultural Production Veges-FruitsNuts Orn Hort Livestock- Forestry 1.7% Other 0.8% Aquaculture 0.3% 0.7% 4.8% Row-Forage crops 0.6% Landscape services 1.0% 2004 Top Farm Gate Commodities Grapes Agritourism Hay Pork 0.4% 0.3% 0.6% Timber 0.6% Rest of Horses 0.3% commodities Beef 1.5% 2.9% 2.3% Breeder Pullet Unit 5.2% Poultry-Eggs 90.2% Layers Hatching egg 8.7% Total AG Value = $277.2 million Broilers 77.1% Trends in Habersham County: Number of Farms & Average Farm Size Number of Farms, Habersham County Average Farm Size 1600 300 Habersham Co. Georgia 1400 1200 218 200 Acres 1000 800 517 600 100 75 400 200 Source: 1945 - 2002 (quinquennial) Censuses of Agriculture 02 R 20 97 92 19 87 19 19 82 78 19 19 74 69 19 19 64 19 59 19 54 19 49 19 45 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 0 0 Trends in Habersham County: Land in Farms & Farms by Size Land in Farms Habersham County Percent of Farms by Size, 2002 60 Acres X 1,000 120 40 80 40 30 38.5 20 20 10 0 0 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 Source: 1945 - Georgia 50 100 60 Habersham Co. 1-9 acres 2002 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 500-999 acres acres 1000+ acres Trends in Habersham County Number of Farms by Commodity 300 278 1987 1992 1997 2002 250 200 155 150 150 100 50 27 0 Beef cows Source: 1987 - Layers inv. Broilers sold 2002 (quinquennial) Censuses of Agriculture Hay How Do We Compare ? Georgia, Habersham and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $8,000 $6,000 $4,000 $2,000 $0 $7,125 $5,153 $3,732 $2,849 $2,504 $2,067 $2,810 $957 $209 $531 $351 ia am anks g r h o s B Ge aber H $382 ll Ha $195 $205 $152 $226 ns un hens ite b w h p W To Ra e t S Sources: 2002 Census of Agriculture and 2004 Farm Gate Value Report What We Did ¾ The Center for Agribusiness and Economic Development performed an analysis of the county’s economy, focusing on the role of food and fiber. What We Asked County Economy Modeled 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? Habersham County Economy Agriculture OUTPUT Output in $ Millions 277.189 0.538 110.181 683.947 121.266 128.824 109.170 254.540 191.684 Percent 14.8 0.0 5.9 36.4 6.5 6.9 5.8 13.6 10.2 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $1.9 Billion Habersham County Economy Agriculture + Directly Related Businesses OUTPUT Agriculture + Direct Output in $ Millions 521.535 0.538 110.181 439.602 121.266 128.824 109.170 254.540 191.684 Percent 27.8 0.0 5.9 23.4 6.5 6.9 5.8 13.6 10.2 Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $1.9 Billion An Economic Snapshot of Habersham County ¾ How much of Habersham County’s total economic output comes from food and fiber production? ¾ AG value alone of $277.2 million consisting of Farm Gate Value and landscape services comprises 14.8% of the county’s economy. ¾ AG plus directly related businesses (ex. poultry processing, sawmills, etc.) comprise 27.8% of the county’s economy. Food and Fiber Production, Processing and Direct Manufacturing as % of Total Output 0 - 10% 10 - 20% 20 - 40% 40 - 60% 60 - 84% Habersham Co. 27.8% 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 Habersham County Production Agriculture IMPACT Direct $ Millions 277.189 0 0 0 0 0 0 0 0 277.189 Indirect $ Millions 0.000 0.000 1.032 5.162 16.603 10.043 10.310 16.187 7.205 66.544 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Total Impact of Production AG = $343.7 million—18.3% of total economy Habersham County Agriculture and Directly Related Businesses IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions 521.535 0 0 0 0 0 0 0 0 521.535 Indirect $ Millions 0.000 0.000 2.354 37.129 29.393 18.970 18.216 47.607 14.143 167.811 Total Impact of AG+Directly Related = $689.3 million—36.7% of total economy Habersham County Production Agriculture + Directly Related Industries Employment IMPACT Agriculture + Direct Direct 2,833 0 0 0 0 0 0 0 0 Indirect 0 0 33 244 177 310 94 797 13 Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Impact of AG + Directly Related Employment = 4,502 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $521.5 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $19 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. Habersham County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $689.3 million. ¾ The total output is $1.9 billion. ¾ Thus, food and fiber (directly and indirectly) account for 36.7% of the total output. Food and Fiber Production, Processing and Direct Manufacturing Impact as % of Total Output 0 - 10% 10 - 20% 20 - 40% 40 - 60% 60 - 100% Habersham Co. 36.7% 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 #06-04A March, 2006