The Economic Importance of Food and Fiber A Spotlight on Putnam County, Georgia Prepared for Putnam County Cooperative Extension January 2013 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Trends in Putnam County: Number of Farms Number of Farms, Putnam County 300 200 100 0 1978 1982 1987 1992 Source: 1978-2007 (quinquennial) Censuses of Agriculture 1997 2002 2007 Trends in Putnam County: Land in Farms, Harvested Cropland & Farms by Size Land in Farms & Harvested Cropland Putnam County Percent of Farms by Size, 2007 Putnam Co. 40 45000 Land in farms Georgia Harvested cropland 35 40000 30 35000 30000 25 25000 20 20000 15 15000 10 10000 5 5000 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 Food and Fiber Production plus Directly Related Manufacturing as % of Total Economic Output Catoosa Dade Towns Fannin 0 - 10% 10 - 20% 20 - 30% 30 - 45% 45 - 58% Rabun Union Murray Whitfield Walker Gilmer White Lumpkin Ha Gordon Chattooga be rs h am Stephens Pickens Dawson Cherokee Bartow Franklin Banks Hall Floyd Forsyth Jackson Polk Barrow Gwinnett Cobb Paulding Madison Oglethorpe Ro ck da le Fulton Lincoln Wilkes Walton DeKalb Douglas Elbert Clarke Oconee Haralson Hart 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 Effingham ery oo Candler Treutlen Macon Ch at ta h Laurens Bleckley Houston Marion Screven Johnson Pulaski Schley Dodge Dooly Wheeler Stewart Webster Sumter Montgom Harris Evans Toombs Bryan Tattnall Chatham Wilcox Telfair Crisp Quitman 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 Updated 1/16/13 Camden Charlton Agriculture in Georgia Georgia's 2011 Farm Gate Value was $13.0 billion. Adding the value of $2.1 billion of landscape services increased the total agricultural production value to $15.1 billion. Total food and fiber production and directly related businesses account for a $71.1 billion output impact on Georgia's $763.6 billion economy. What We Know about Putnam County 2011 Farm Gate Value in Putnam Co. was $73.9 million. Adding $1.7 million of landscape services increased the total agricultural production value to $75.7 million. The highest value commodity group was Poultry and Eggs, representing 47.8% of the total agricultural production value. Putnam County 2011 Agricultural Production Value Other 5.4% Row-Forage Crops 7.1% Fruits-Nuts 0.2% Vegetables 0.3% Ornamental Horticulture 1.1% Forestry 2.4% Poultry-Egg 47.8% Livestock 35.5% 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? Putnam County Economy Agriculture OUTPUT Output in $ Agriculture Percent 75,653,925 6.28% 9,023,044 0.75% Construction 100,782,708 8.36% Manufacturing 211,718,435 17.56% Trans-Utilities-Info 292,878,325 24.29% 80,019,415 6.64% Finance-Ins-RE 165,314,696 13.71% Services 162,950,848 13.52% Mining Trade Govt. & non-NAICS 107,284,681 Total County Economic Output = $1,205.6 million 8.90% Putnam County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Agriculture + Direct Percent 226,192,127 18.76% 9,023,044 0.75% Construction 100,782,708 8.36% Manufacturing 61,180,233 5.07% 292,878,325 24.29% 80,019,415 6.64% Finance-Ins-Real Est 165,314,696 13.71% Services 162,950,848 13.52% Mining Trans-Utilities-Info Trade Govt. & non-NAICS 107,284,681 Total County Economic Output = $1,205.6 million 8.90% Putnam County Employment Total Jobs = 9,118 Mining 23 0.3% Construction 1122 12.3% Manufacturing 133 1.5% Trans-UtilitiesInfo 667 7.3% Trade 1,141 12.5% AG + Directly Related 815 8.9% State & Federal Government 1,028 11.3% Public Education 767 8.4% Finance-Ins- Real Est 421 4.6% Professional Services 925 10.1% Other Services 2,076 22.8% Primary data source: Center for Agribusiness & Economic Development, UGA An Economic Snapshot of Putnam County How much of Putnam County’s total economic output comes from food and fiber production? AG value alone of $75.7 million consisting of Farm Gate Value and landscape services comprises 6.3% of the county’s economy. AG plus directly related businesses (ex. Ag Support Services, Processing, etc.) comprise 18.8% 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 Putnam County Agriculture IMPACT Direct $ Agriculture Indirect $ 75,653,925 0 Mining 0 152,817 Construction 0 615,320 Manufacturing 0 5,368,798 Trans-Utilities-Info 0 4,221,871 Trade 0 1,498,505 Finance-Ins-Real Est 0 4,737,737 Services 0 3,226,616 Govt. & non-NAICS 0 398,461 Total 75,653,925 20,220,126 Total Impact of Production AG = $95.9 million 8.0% of total economy Putnam 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 Indirect $ 226,192,127 0 0 0 0 0 0 0 0 226,192,127 Total Impact of AG + Directly Related = $265.9 million 22.1% of total economy 0 402,018 1,826,727 5,486,425 9,736,331 3,757,204 8,601,969 9,018,838 863,232 39,692,744 Putnam County Production Agriculture + Directly Related Industries Employment IMPACT Direct Agriculture + Direct Indirect 815 0 Mining 0 1 Construction 0 25 Manufacturing 0 6 Trans-Utilities-Info 0 47 Trade 0 48 Finance-Ins-Real Est 0 23 Services 0 149 Govt. & non-NAICS 0 6 Total Impact of AG + Directly Related Employment = 1,118 Jobs 12.3% of total employment What These Numbers Mean: A Brief Explanation Direct impact is $226.2 million. This includes food and fiber production, processing and directly related manufacturing. Indirect impact from related sectors is $39.7 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. Putnam County Food and Fiber Impact Conclusions The total impact of food and fiber production, processing and direct manufacturing is $265.9 million. The total county output is $1,205.6 million. Thus, food and fiber (directly and indirectly) account for 22.1% 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” Ag Profile Report #13-01A