The Economic Importance of Food and Fiber A Spotlight on Lumpkin County, Georgia Prepared for: Lumpkin County Cooperative Extension December, 2006 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia 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 Lumpkin County ¾ 2005 Farm Gate Value in Lumpkin Co. was $42.9 million. Adding $443 thousand of landscape services increased the total agricultural production value to $43.4 million. ¾ The highest value commodity group was poultry/eggs, representing 79.4% of the total agricultural production value. Lumpkin County 2005 Agricultural Production Value 2005 Agricultural Production Vegetables Fruits-Nuts 0.7% 0.4% Other Orn Hort Landscape 0.8% Forestry 7.6% services 0.4% 1.0% LivestockAquaculture 8.1% 2005 Top Farm Gate Commodities Container Dairy Nursery 1.3% Horses 1.6% 3.4% Beef 3.4% Ag Tourism Hay 0.6% Strawberries 1.1% 0.4% Rest of commodities 2.2% Greenhouse 5.9% Row-Forage crops 1.6% Layers 13.0% Poultry-Eggs 79.4% Total AG Value = $43.4 million Broilers 67.2% Trends in Lumpkin County: Number of Farms & Average Farm Size Number of Farms, Lumpkin County 300 Lumpkin Co. Georgia 218 200 A cres 85 100 250 Source: 1945-2002 (quinquennial) Censuses of Agriculture R 02 20 97 92 19 19 87 19 82 19 78 19 74 19 69 19 64 19 59 19 49 54 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 19 1000 900 800 700 600 500 400 300 200 100 0 Average Farm Size Trends in Lumpkin County: Land in Farms & Farms by Size Acres X 1,000 Land in Farms Lumpkin County Percent of Farms by Size, 2002 60 90 80 70 60 50 40 30 20 10 0 Lumpkin Co. Georgia 50 40 30 21.3 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 Lumpkin County Number of Farms by Commodity 160 140 1987 1992 1997 2002 126 120 100 80 68 60 37 40 20 9 13 0 Beef Cows Hay Corn Source: 1987-2002 (quinquennial) Censuses of Agriculture Layers 20+ wks inv Broilers How Do We Compare ? Georgia, Lumpkin and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $ Per Acre $8,758 $4,820 $3,285 $957 $2,014 $300 $209 $172 $2,901 $1,789 $133 $715 n ia in in er o g k n s r m o il an mp Daw G F u Ge L $357 ll a H $1,049 $234 $79 n te o i i h Un W 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? Lumpkin County Economy Agriculture OUTPUT Output in $ Millions 43.356 3.971 59.889 239.242 55.723 78.937 33.724 127.536 155.425 Percent 5.4 0.5 7.5 30.0 7.0 9.9 4.2 16.0 19.5 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $797.8 million Lumpkin County Economy Agriculture + Directly Related Businesses OUTPUT Agriculture + Direct Output in $ Millions 54.110 3.971 59.889 228.488 55.723 78.937 33.724 127.536 155.425 Percent 6.8 0.5 7.5 28.6 7.0 9.9 4.2 16.0 19.5 Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $797.8 million An Economic Snapshot of Lumpkin County ¾ How much of Lumpkin County’s total economic output comes from food and fiber production? ¾ AG value alone of $43.4 million consisting of Farm Gate Value and landscape services comprises 5.4% of the county’s economy. ¾ AG plus directly related businesses (ex. logging, fertilizer mixing, etc.) comprise 6.8% 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% Lumpkin Co. 6.8% 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 Lumpkin County Agriculture IMPACT Direct $ Millions 43.356 0 0 0 0 0 0 0 0 43.356 Indirect $ Millions 0 0.000 0.112 0.329 1.729 1.858 0.899 2.736 1.677 9.339 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Total Impact of Production AG = $52.7 million—6.6% of total economy Lumpkin County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions 54.110 0 0 0 0 0 0 0 0 54.110 Indirect $ Millions 0 0.000 0.132 0.694 2.111 2.275 1.114 3.386 2.007 11.719 Total Impact of AG + Directly Related = $65.8 million—8.3% of total economy Lumpkin County Production Agriculture + Directly Related Industries Employment IMPACT Direct 544 0 0 0 0 0 0 0 0 Indirect 0 0 2 4 15 26 8 67 1 Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Impact of AG + Directly Related Employment = 666 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $54.1 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $2.3 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) 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. Lumpkin County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $65.8 million. ¾ The total output is $797.8 million. ¾ Thus, food and fiber (directly and indirectly) account for 8.3% 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% Lumpkin Co. 8.3% 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 #06-31A December, 2006