The Economic Importance of Food and Fiber A Spotlight on Mitchell County, Georgia Prepared for Mitchell County Cooperative Extension June, 2012 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Trends in Mitchell County: Number of Farms Number of Farms, Mitchell County 700 600 500 400 300 200 100 0 1978 1982 1987 1992 Source: 1978-2007 (quinquennial) Censuses of Agriculture 1997 2002 2007 Trends in Mitchell County: Land in Farms, Harvested Cropland & Farms by Size Land in Farms & Harvested Cropland Mitchell County Percent of Farms by Size, 2007 Mitchell Co. 40 250000 Land in farms Georgia Harvested cropland 35 30 200000 25 150000 20 15 100000 10 50000 5 0 1992 1997 2002 2007 0 1-9 acres Source: 1992-2007 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 acres 500-999 acres 1000+ acres Agriculture in Georgia Georgia's 2010 Farm Gate Value was $12.0 billion. Adding the value of $2.2 billion of landscape services increased the total agricultural production value to $14.2 billion. Total food and fiber production and directly related businesses account for a $68.9 billion output impact on Georgia's $719.8 billion economy. Production Agriculture: 2010 Dade Catoosa Towns Fannin Whitfield Walker Gilmer White Lumpkin Ha Gordon Chattooga be rs ha m Stephens Pickens Dawson Cherokee Bartow Franklin Banks Hall Floyd Jackson Polk Barrow Gwinnett Cobb Paulding Madison Oglethorpe ck da le Fulton Lincoln Wilkes Walton DeKalb Douglas Elbert Clarke Oconee Haralson Hart Forsyth Ro Georgia Total Agricultural Production Value $14.2 Billion Rabun Union Murray Clayton Carroll Morgan Newton Fayette Taliaferro Columbia McDuffie Warren Coweta Heard Pike Hancock Lamar Meriwether Richmond Putnam Jasper Butts Spalding Troup Greene Henry Glascock Baldwin Burke Jefferson Jones Monroe Washington Upson Bibb Wilkinson Jenkins Crawford Talbot Twiggs Emanuel Peach Taylor ch ee Muscogee Bulloch Pulaski Schley Dodge Dooly Wheeler Stewart Webster Sumter Evans Toombs Bryan Tattnall Chatham Wilcox Telfair Crisp Quitman $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $475 Liberty Randolph Terrell Lee Jeff Davis Ben Hill Long Appling Turner Irwin Clay Dougherty Calhoun Worth Coffee Wayne Bacon McIntosh Tift Early Pierce Baker Berrien Mitchell Miller Atkinson Brantley Colquitt Cook Glynn Ware Lanier Seminole Decatur Grady Clinch Thomas Brooks Lowndes Echols 2010 Farm Gate Value by County in Millions of Dollars Effingham ery oo Candler Treutlen Macon Ch at ta h Laurens Bleckley Houston Marion Screven Johnson Montgom Harris Camden Charlton What We Know about Mitchell County 2010 Farm Gate Value in Mitchell Co. was $283.9 million. Adding $1.1 million of landscape services increased the total agricultural production value to $285.0 million. The highest value commodity group was poultry and eggs, representing 35.6% of the total agricultural production value. Mitchell County 2010 Agricultural Production Value Other 6.6% Row-Forage Crops 32.4% Poultry-Eggs 35.6% Fruits-Nuts 7.4% Livestock 9.9% Vegetables Ornamental 6.2% Forestry Horticulture 1.4% 0.4% What We Did County Economy Modeled The Center for Agribusiness and Economic Development performed an analysis of the county’s economy, focusing on the role of food and fiber. 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) What is the total (direct and indirect) Impact of food and fiber production and directly related industries? Mitchell County Economy Agriculture OUTPUT Output in $ Agriculture Percent 285,006,088 18.80% 0 0.00% Construction 30,769,598 2.03% Manufacturing 673,544,549 44.44% Trans-Utilities-Info 70,645,971 4.66% Trade 93,527,792 6.17% Finance-Ins-RE 138,104,613 9.11% Services 120,111,244 7.92% Mining Govt. & non-NAICS 104,009,275 6.86% Total County Economic Output = $1,515.7 million Mitchell County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Agriculture + Direct Percent 817,747,846 53.95% 0 0.00% Construction 30,769,598 2.03% Manufacturing 140,802,791 9.29% Trans-Utilities-Info 70,645,971 4.66% Trade 93,527,792 6.17% Finance-Ins-Real Est 138,104,613 9.11% Services 120,111,244 7.92% Mining Govt. & non-NAICS 104,009,275 6.86% Total County Economic Output = $ 1,515.7 million Mitchell County Employment Total Jobs = 10,610 AG + Directly Related 4,014 37.8% Construction 297 2.8% Manufacturing 312 2.9% Trans-UtilitiesInfo 404 3.8% State & Federal Government 1,353 12.8% Public Education 530 5.0% Trade 1,170 11.0% Other Services 1,008 9.5% Finance-Ins- Real Est 437 4.1% Professional Services 1,086 10.2% Primary data source: Center for Agribusiness & Economic Development, UGA An Economic Snapshot of Mitchell County How much of Mitchell County’s total economic output comes from food and fiber production? AG value alone of $285.0 million consisting of Farm Gate Value and landscape services comprises 18.8% of the county’s economy. AG plus directly related businesses (ex. Ag Support Services, Processing, etc.) comprise 54.0% of the county’s economy. What is the Impact? What is the total (direct and indirect) impact of food and fiber production and directly related industries? This 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 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 Mitchell County Agriculture IMPACT Direct $ Agriculture Indirect $ 285,006,088 0 Mining 0 0 Construction 0 1,083,943 Manufacturing 0 1,189,348 Trans-Utilities-Info 0 11,379,180 Trade 0 11,798,962 Finance-Ins-Real Est 0 32,044,068 Services 0 16,911,789 Govt. & non-NAICS 0 3,095,758 Total 285,006,088 77,503,048 Total Impact of Production AG = $362.5 million 23.9% of total economy Mitchell County Production Agriculture + Directly Related Businesses IMPACT Direct $ Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-Real Est Services Govt. & non-NAICS Total 817,747,846 0 0 0 0 0 0 0 0 817,747,846 Indirect $ 0 0 2,363,395 1,931,006 34,250,881 24,354,890 58,561,417 37,769,076 6,113,002 165,343,666 Total Impact of AG + Directly Related = $983.1 million 64.9% of total economy Mitchell County Production Agriculture + Directly Related Industries Employment IMPACT Direct Agriculture + Direct Indirect 4,014 0 Mining 0 0 Construction 0 26 Manufacturing 0 7 Trans-Utilities-Info 0 218 Trade 0 314 Finance-Ins-Real Est 0 185 Services 0 662 Govt. & non-NAICS 0 28 Total Impact of AG + Directly Related Employment = 5,453 Jobs 51.4% of total employment What These Numbers Mean: A Brief Explanation Direct impact is $817.7 million. This includes food and fiber production, processing and directly related manufacturing. Indirect impact from the related sectors is $165.3 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) 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. Local stores also hire employees to assist farmers. They take home wages and buy groceries at the local store which increases demand there. Mitchell County Food and Fiber Impact Conclusions The total impact of food and fiber production, processing and direct manufacturing is 983.1 million. The total county output is $1,515.7 million. Thus, food and fiber (directly and indirectly) account for 64.9% of the total county output, considering the multiplier effects. Contact Information Prepared by: Sharon P. Kane and Karen Stubbs Center for Agribusiness & Economic Development Dr. Kent Wolfe, Director “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 “Resources”, then “Georgia Statistics System” Special County Area Report SA#12-10A