The Economic Importance
and Value of Agriculture
A Spotlight on Madison County, Georgia
Prepared for:
Madison County Cooperative Extension
November, 2006
by:
John C. McKissick
The Center for Agribusiness and Economic Development
College of Agricultural and Environmental Sciences
The University of Georgia
Georgia Statistics Web Site
- Interactive Database (county data, maps, etc.)
- Print County Profiles
www.caed.uga.edu
State Population Change: 2000-2005
GA = 10.8%
US = 5.3%
Census estimates indicate
that the US increased its
population from 2000-2005 by
5.3% from 281 to 296 million.
Georgia had the 4th highest
percentage growth rate of all
states with 10.8%.
Avg US State
= 5.0%
LOSS
GAIN < US
GAIN < GA but > US
GAIN = or > GA
Primary data
source:
U.S. Census Bureau
Graphic by Center for Agribusiness & Economic Development, UGA
Population Change: 2000-2005
LOSS
0 – 5.3%
5.3 – 10.8%
10.8 – 21.6%
21.6 – 42.7%
Madison Co.=
6.1%
Primary data source: U.S. Census Bureau
Avg. GA
County =
7.2%
GA = 10.8%
US = 5.3%
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%
Madison Co.
78.5%
Primary data sources:
U.S. Census of Agriculture, 2002
Forest Statistics for Georgia, 1997
Components of 2005 Property Tax Gross Digest
Madison County
Residential
49.3%
Heavy Equip.
0.00%
Timber *
0.05%
Mobile Home
1.8%
Industrial
Commercial
0.8%
Public Utility
Motor Vehicle
6.9%
6.0%
9.3%
Ag-PreferentialEnvironmental
25.9%
40% Assessment Value of Property
Gross Digest = $678,880,000
STATE Homestead & Property Exemptions = $73,630,000
Net M&O Digest = $605,250,000
Primary data source:
GA Dept. of Revenue
Value of Exempt Property = $37,532,000
* Timber taxed at 100% based on previous year sales
County Property Tax Digest Comparisons: 2005
County
MADISON
CLARKE
OGLETHORPE
ELBERT
HART
FRANKLIN
BANKS
JACKSON
Avg. GA Co.
% Resi- % Agri- % Com- % In% Motor
Dential cultural mercial dustrial Vehicle
49.3
54.5
40.5
36.7
54.3
32.7
35.8
44.9
40.8
Primary data source: GA Dept. of Revenue
25.9
.7
39.0
25.6
19.8
35.1
37.1
15.8
20.8
6.9
29.4
4.5
15.2
6.1
14.7
14.1
9.3
13.2
.8
7.5
.7
7.5
11.1
5.5
2.0
18.8
7.8
9.3
5.5
9.4
8.9
5.5
7.3
6.8
7.2
9.0
%
Other
7.9
2.5
5.8
6.1
3.1
4.7
4.2
4.0
8.4
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
$0.64
$0.87
$0.83
$0.90
$0.87
Cherokee
Jones
Carroll
Oconee
US Avg
$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00
Dorfman, Jeffery, The Economics of Growth, Sprawl and Land Use Decisions (presentation), Dept. of Ag &
Applied Economics, UGA, January 2004.
Agriculture in Georgia
¾ Georgia's 2005 Farm Gate Value was
$10.6 billion. Adding the value of
landscape services increased the total
agricultural production value to $12.3
billion.
¾ Total food and fiber production and
directly related businesses account for
a $52.7 billion output impact on
Georgia's $614 billion economy.
Production Agriculture: 2005
Georgia Total
Agricultural
Production Value
$12.3 Billion
Poultry &
Eggs
36.7%
Landscape
services
14.0%
Other Income
5.4%
Fruits & Nuts
2.2%
Forestry &
Products
5.7%
Ornamental
Horticulture
7.3%
Vegetables
5.2%
Livestock &
Aquaculture
10.6%
Row &
Forage Crops
13.0%
$0 - $20
$20 - $45
$45 - $80
$80 - $200
$200 - $317
2005 Farm Gate
Value by County
in Millions of Dollars
What We Know
about Madison County
¾ 2005 Farm Gate Value in Madison Co.
was $241.5 million. Adding $1.6
million of landscape services
increased the total agricultural
production value to $243.1 million.
¾ The highest value commodity group
was poultry representing 90.6% of
the total agricultural production
value.
Madison County
2005 Agricultural Production Value
2005 Agricultural Production
Forestry
Livestock0.2%
Aquaculture
5.9%
Row-Forage
crops
1.4%
Veges-FruitsOrn Hort Nuts
0.9%
0.2%
Other
0.2%Landscape
services
0.7%
2005 Top Farm Gate Commodities
Breeder Pullet
Unit
1.7%
Dairy
Hay 0.6%
1.2%
Horses
1.8%
Beef
3.3%
Layers
5.5%
Poultry-Eggs
90.6%
Total AG Value = $243.1 million
Field Nursery
0.4%
Greenhouse Timber
0.1%
0.4%
All Other
1.1%
Broilers
84.0%
Trends in Madison County:
Number of Farms & Average Farm Size
Number of Farms, Madison County
300
Madison Co.
Georgia
218
200
763
A c re s
100
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
49
54
19
1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002
19
45
0
19
2000
1800
1600
1400
1200
1000
800
600
400
200
0
Average Farm Size
Trends in Madison County:
Land in Farms & Farms by Size
Acres X 1,000
Land in Farms
Madison County
Percent of Farms by Size, 2002
50
180
160
140
120
100
80
60
40
20
0
Madison Co.
Georgia
40
30
76.5
20
10
9
19 2
97
R
20
02
87
19
82
19
78
19
74
19
69
19
64
19
59
19
54
19
50
19
19
19
45
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 Madison County
Number of Farms by Commodity
500
450
442
1987
1992
1997
2002
400
350
287
300
250
200
119
150
100
50
11
13
Hogs and Pigs
Broilers and
Wheat for Grain
other Meat-type
chickens
6
0
Beef Cow s
Source: 1987-2002 (quinquennial) Censuses of Agriculture
Soybeans
Hay
How Do We Compare ?
Georgia, Madison and Surrounding Counties
Farm Gate Value
$ Per Farm (thousands)
$ Per Acre
$4,000
$3,500
$3,000
$3,678 $3,577
$3,624
$2,500
$3,158
$2,000
$1,500
$1,000
$500
$2,346
$2,340
$1,208
$957
$209
$316
$341
$318
$0
a
on
s
rgi
i
o
d
Ge
Ma
e
ks
k
r
n
Ba
C la
$175
$412
$384
rt
lin
e
k
b
l
n
E
Fra
$255
n
rt
a
so
H
k
Jac
Sources: 2002 Census of Agriculture and 2005 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?
Madison County Economy
Agriculture OUTPUT
Output in $ Millions
243.127
7.774
90.451
94.606
29.425
35.993
17.951
75.989
125.162
Percent
33.7
1.1
12.6
13.1
4.1
5.0
2.5
10.5
17.4
Agriculture
Mining
Construction
Manufacturing
Trans-Utilities-Info
Trade
Finance-Ins-RE
Services
Government
Total County Economic Output = $720.5 million
Madison County Economy
Agriculture + Directly Related Businesses OUTPUT
Output in $ Millions
249.182
7.774
90.451
88.552
29.425
35.993
17.951
75.989
125.162
Percent
34.6
1.1
12.6
12.3
4.1
5.0
2.5
10.5
17.4
Agriculture + Direct
Mining
Construction
Manufacturing
Trans-Utilities-Info
Trade
Finance-Ins-RE
Services
Government
Total County Economic Output = $720.5 million
An Economic Snapshot
of Madison County
¾ How much of Madison County’s total
economic output comes from food and
fiber production?
¾ AG value alone of $243.1 million
consisting of Farm Gate Value and
landscape services comprises 33.7% of
the county’s economy.
¾ AG plus directly related businesses (ex.
logging, etc.) comprise 34.6% 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%
Madison Co.
34.6%
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
Madison County
Agriculture IMPACT
Direct $ Millions
Indirect $ Millions
243.127
0
Agriculture
0
0.003
Mining
0
0.498
Construction
0
1.053
Manufacturing
0
5.272
Trans-Utilities-Info
0
3.804
Trade
0
1.853
Finance-Ins-RE
0
7.698
Services
0
6.804
Government
243.127
26.985
Total
Total Impact of Production AG = $270.1 million—37.5% of total economy
Madison County
Production Agriculture + Directly Related Businesses IMPACT
Agriculture + Direct
Mining
Construction
Manufacturing
Trans-Utilities-Info
Trade
Finance-Ins-RE
Services
Government
Total
Direct $ Millions
249.182
0
0
0
0
0
0
0
0
249.182
Indirect $ Millions
0
0.003
0.506
1.086
5.342
3.907
1.936
7.918
7.000
27.699
Total Impact of AG+Directly Related = $276.9 million—38.4% of total economy
Madison County
Production Agriculture + Directly Related Industries
Employment IMPACT
Direct
917
0
0
0
0
0
0
0
0
Indirect
0
0
7
6
44
49
12
155
5
Agriculture + Direct
Mining
Construction
Manufacturing
Trans-Utilities-Info
Trade
Finance-Ins-RE
Services
Government
Total Impact of AG + Directly Related Employment = 1,195 Jobs
What These Numbers Mean:
A Brief Explanation
¾ Direct impact is $249.2 million. This
includes food and fiber production,
processing and directly related
manufacturing.
¾ Indirect impact from the Trade sector is
$3.9 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.
Madison County Food and Fiber
Impact Conclusions
¾ The total impact of food and fiber
production, processing and direct
manufacturing is $276.9 million.
¾ The total output is $720.5 million.
¾ Thus, food and fiber (directly and
indirectly) account for 38.4% 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%
Madison Co.
38.4%
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
#06-28A
November, 2006
Population Change: 2000-2005
LOSS
Gain < US
Gain < GA but > US
Gain > GA
Northwest
Avg. Co. 12.9%
Total 13.4%
Northeast
Avg. Co. 9.4%
Total 10.4%
6.1%
Southwest
Avg. Co. 1.7%
Total 3.9%
Southeast
Avg. Co. 4.9%
Total 4.5%
GA Avg. Co. 7.2%
GA Total 10.8%
---------------
US 5.3%
Primary data source:
U.S. Census Bureau
Graphic by Center for Agribusiness
& Economic Development, UGA
% of Land in Cropland, Pastureland & Forestland
22.8 – 74.4%
74.4 – 83.2%
83.2 – 88.1%
88.1 – 92.6%
92.6 – 99.6%
GA Avg. Co. = 80.8%
GA Total = 81.7%
Primary data sources:
U.S. Census of Agriculture, 2002
Forest Statistics for Georgia, 1997
Graphic by Center for Agribusiness
& Economic Development, UGA