The Economic Importance of Food and Fiber A Spotlight on Polk County, Georgia Prepared for: Polk County Cooperative Extension February, 2006 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Polk County 43,007 43,643 40,267 38,127 33,815 32,386 29,656 28,015 30,976 2010 Trend CAED 2010 Proj. OPB 2004 Est. 2000 1990 1980 1970 1960 1950 28,467 25,141 1940 1930 0 9,000 18,000 27,000 36,000 45,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development); OPB (State Office of Planning & Budget). Population Change: 2000-2004 LOSS 0 – 4.3% 4.3 – 7.8% 7.8 – 15.7% 15.7 – 34% GA = 7.8% US = 4.3% Primary data source: U.S. Census Bureau 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% Polk Co. 76.8% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2004 Property Tax Gross Digest Polk County Residential 45.3% Ag-PreferentialEnv-Conserv 11.1% Heavy Equip. 0.03% Timber * 0.21% Mobile Home 0.5% Motor Vehicle 9.8% Primary data source: GA Dept. of Revenue Commercial 12.4% Industrial 8.4% 40% Assessment Value of Property Public Utility Gross Digest = $904,651,449 10.2% STATE Homestead & Property Exemptions = $71,471,630 Net M&O Digest = $833,179,819 Value of exempt property = $61,831,423 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2004 County % Residential % Agri- % Com- % In% Motor cultural mercial dustrial Vehicle % Other POLK 45.3 13.2 12.4 8.4 9.8 10.9 BARTOW 41.7 8.8 15.3 16.9 9.0 8.3 FLOYD 42.3 6.3 17.3 11.9 8.0 14.3 HARALSON 41.7 23.7 11.7 6.2 10.0 6.7 PAULDING 71.9 5.2 10.3 1.3 9.1 2.2 Avg. GA Co. 40.6 20.8 13.2 7.9 9.0 8.4 Primary data source: GA Dept. of Revenue 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 $0.00 Cherokee Jones Carroll Oconee US Avg $0.64 $0.87 $0.83 $0.90 $0.87 $1.00 $2.00 $3.00 Dorfman, Jeffery, The Economics of Growth, Sprawl and Land Use Decisions (presentation), Dept. of Ag & Applied Economics, UGA, January 2004. $4.00 Agriculture in Georgia ¾ Georgia's 2004 Farm Gate Value was $10.3 billion. Adding the value of landscape services increased the total agricultural production value to $11.2 billion. ¾ Total food and fiber production and directly related businesses account for a $49.3 billion impact on Georgia's $557 billion economy. Production Agriculture: 2004 Georgia Total Agricultural Production Value $11.2 Billion Other Income 4.1% Poultry & Eggs 41.5% Landscape services 10.2% Fruits & Nuts 2.0% Forestry & Products 5.3% Ornamental Horticulture 5.7% Vegetables 6.3% Livestock & Aquaculture 11.4% Row & Forage Crops 13.4% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $325 2004 Farm Gate Value by County in Millions of Dollars What We Know about Polk County ¾ 2004 Farm Gate Value in Polk Co. was $28.2 million. Adding $3.4 million of landscape services increased the total agricultural production value to $31.6 million. ¾ The highest value commodity group was poultry/eggs, representing 53.4% of the total agricultural production value. Polk County 2004 Agricultural Production Value 2004 Agricultural Production Veges-FruitsNuts Orn Hort Livestock- Forestry 0.0% 0.4% Aquaculture 6.6% 18.1% Other Landscape 2.6% services 10.7% 2004 Top Farm Gate Commodities Soybeans 1.6% Hay Dairy 2.8% Cotton 2.8% Corn Deer hunting 1.5% leases All others 0.7% 3.5% 2.9% Timber 7.3% Row-Forage crops 8.2% Horses 8.2% Poultry-Eggs 53.4% Beef 9.2% Total AG Value = $31.6 million Broilers 59.4% Trends in Polk County: Number of Farms & Average Farm Size Number of Farms, Polk County Average Farm Size 300 1800 1600 1400 1200 1000 800 600 400 200 0 Polk Co. Georgia 218 A cres 200 122 100 428 Source: 1945 - 2002 (quinquennial) Censuses of Agriculture R 02 20 97 92 19 87 19 19 82 78 19 19 74 69 19 19 64 59 19 19 54 49 19 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 Trends in Polk County: Land in Farms & Farms by Size 160 140 120 100 80 60 40 20 0 Percent of Farms by Size, 2002 50 Source: 1945 - Polk Co. Georgia 40 30 52 20 10 0 19 45 19 50 19 54 19 59 19 64 19 69 19 74 19 78 19 82 19 87 19 9 19 2 97 R 20 02 Acres X 1,000 Land in Farms Polk County 1-9 acres 2002 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 acres 500-999 acres 1000+ acres Trends in Polk County Number of Farms by Commodity 250 224 1987 1992 1997 2002 200 153 150 100 50 18 13 0 Beef cows Source: 1987 - Milk cows Broilers sold 2002 (quinquennial) Censuses of Agriculture Hay How Do We Compare ? Georgia, Polk and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $3,000 $2,500 $2,000 $2,659 $2,591 $1,500 $1,000 $500 $805 $957 $209 $542 $66 $361 $111 $957 $115 $166 $0 ia g r o Ge lk Po ow t r Ba yd o l F on ng i s l d l ra u Ha Pa Sources: 2002 Census of Agriculture and 2004 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? Polk County Economy Agriculture OUTPUT Output in $ Millions 31.575 1.195 88.292 729.493 133.071 100.944 47.932 186.123 191.630 Percent 2.1 0.1 5.8 48.3 8.8 6.7 3.2 12.3 12.7 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $1.5 billion Polk County Economy Agriculture + Directly Related Businesses OUTPUT Agriculture + Direct Output in $ Millions 125.560 1.195 88.292 635.508 133.071 100.944 47.932 186.123 191.630 Percent 8.3 0.1 5.8 42.1 8.8 6.7 3.2 12.3 12.7 Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $1.5 billion An Economic Snapshot of Polk County ¾ How much of Polk County’s total economic output comes from food and fiber production? ¾ AG value alone of $31.6 million consisting of Farm Gate Value and landscape services comprises 2.1% of the county’s economy. ¾ AG plus directly related businesses (ex. poultry processing, paper mills, etc.) comprise 8.3% 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% Polk Co. 8.3% 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 Polk County Agriculture IMPACT Direct $ Millions 31.575 0 0 0 0 0 0 0 0 31.575 Indirect $ Millions 0 0.000 0.120 0.476 1.591 1.205 0.582 1.757 1.200 6.931 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Total Impact of Production AG = $38.5 million—2.6% of total economy Polk County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions 125.560 0 0 0 0 0 0 0 0 125.560 Indirect $ Millions 0 0.000 0.525 10.535 5.403 3.486 2.001 5.693 3.293 30.936 Total Impact of AG + Directly Related = $156.5 million–10.4% of total economy Polk County Production Agriculture + Directly Related Industries Employment IMPACT Direct 1,073 0 0 0 0 0 0 0 0 Indirect 0 0 6 55 41 61 14 107 6 Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Impact of AG + Directly Related Employment = 1,364 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $125.6 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $3.5 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. Polk County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $156.5 million. ¾ The total output is $1.5 billion. ¾ Thus, food and fiber (directly and indirectly) account for 10.4% 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% Polk Co. 10.4% 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 #06-11A February, 2006