The Economic Importance of Food and Fiber Prepared for:

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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
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