The Economic Importance of Food and Fiber A Spotlight on Burke County, Georgia Prepared for: Burke County Cooperative Extension January, 2007 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 Burke County ¾ 2005 Farm Gate Value in Burke Co. was $85.9 million. Adding $237 thousand of landscape services increased the total agricultural production value to $86.1 million. ¾ The highest value commodity group was row & forage crops, representing 43.6% of the total agricultural production value. Burke County 2005 Agricultural Production Value 2005 Agricultural Production Fruits-Nuts Other 15.4% 5.0% Landscape services 0.3% Orn Hort 2.6% 2005 Top Farm Gate Commodities Row-Forage crops 43.6% Rest of Commodities 22.8% Cotton 20.2% Hay 2.4% Horses 2.8% Vegetables 0.3% Timber 11.5% Silage 3.9% Forestry 12.9% LivestockAquaculture 19.9% Hunting Leases 4.6% Pecans 4.8% Beef 5.3% Total AG Value = $86.1 million Peanuts 10.6% Dairy 11.2% Trends in Burke County: Number of Farms & Average Farm Size Number of Farms, Burke County Average Farm Size 800 2500 700 2000 Acres 600 1500 1000 494 500 500 Burke Co. Georgia 443 400 300 218 200 100 0 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 Source: 1945 - 19 45 19 49 19 54 19 59 19 64 19 69 19 74 19 78 19 82 19 87 19 92 19 97 R 20 02 0 2002 (quinquennial) Censuses of Agriculture Trends in Burke County: Land in Farms & Farms by Size Percent of Farms by Size, 2002 40 450 400 350 300 250 200 150 100 50 0 Burke Co. Georgia 30 219.0 20 10 9 19 2 97 R 20 02 87 1-9 acres 19 82 19 78 19 74 19 69 19 64 19 59 19 54 Source: 1945 - 19 19 19 19 50 0 45 Acres X 1,000 Land in Farms Burke County 2002 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 500-999 acres acres 1000+ acres Trends in Burke County Number of Farms by Commodity 160 146 1987 1992 1997 2002 140 120 100 80 60 54 54 50 41 36 40 20 0 Corn for Grain Wheat for Grain Source: 1987 - Cotton Soybeans 2002 (quinquennial) Censuses of Agriculture Peanuts Beef Cows How Do We Compare ? Georgia, Burke and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $1,400 $1,200 $1,370 $1,000 $800 $957 $600 $392 $400 $200 $0 $209 ia g r o Ge $174 e k r Bu $294 $85 $375 $133 $360 $142 $299 $122 $159 l s n n en o nd i ue v s o k n r e n a fe cr hm Je S c Em i Jef R 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? Burke County Economy Agriculture OUTPUT Output in $ Millions Percent Agriculture 86.096 5.9 Construction 21.531 1.5 Manufacturing 203.358 14.0 Trans-Utilities-Info 807.990 55.7 Trade 82.272 5.7 Finance-Ins-RE 27.842 1.9 Services 103.255 7.1 Government 117.979 8.1 Total County Economic Output = $1.45 billion Burke County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Millions Percent Agriculture + Direct 99.607 6.9 Construction 21.531 1.5 Manufacturing 189.847 13.1 Trans-Utilities-Info 807.990 55.7 Trade 82.272 5.7 Finance-Ins-RE 27.842 1.9 Services 103.255 7.1 Government 117.979 8.1 Total County Economic Output = $1.45 billion An Economic Snapshot of Burke County ¾ How much of Burke County’s total economic output comes from food and fiber production? ¾ AG value alone of $86.1 million consisting of Farm Gate Value and landscape services comprises 5.9% of the county’s economy. ¾ AG plus directly related businesses (ex. logging, animal slaughtering, etc.) comprise 6.9% 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% Burke Co. 6.9% 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 Burke County Agriculture IMPACT Direct $ Millions 86.096 0 0 0 0 0 0 0 86.096 Indirect $ Millions 0 0.086 0.410 3.878 4.756 2.218 4.593 3.633 19.574 Agriculture Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Total Impact of Production AG=$105.7 million—7.3% of total economy Burke County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions 99.607 0 0 0 0 0 0 0 99.607 Indirect $ Millions 0 0.090 0.488 4.225 5.328 2.434 5.088 3.954 21.609 Total Impact of AG + Directly Related = $121.2 million—8.4% of total economy Burke County Production Agriculture + Directly Related Industries Employment IMPACT Direct 1,041 0 0 0 0 0 0 0 Indirect 0 1 3 21 68 21 95 4 Agriculture + Direct Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Impact of AG + Directly Related Employment = 1,254 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $99.6 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $5.3 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. Burke County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $121.2 million. ¾ The total output is $1.45 billion. ¾ Thus, food and fiber (directly and indirectly) account for 8.4% 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% Burke Co. 8.4% 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 #0702A January, 2007