The Economic Importance of Food and Fiber Prepared for:

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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
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