The Economic Importance of Food and Fiber A Spotlight on Lumpkin County, Georgia Prepared for Lumpkin County Cooperative Extension November, 2008 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Lumpkin County 28,836 28,222 26,554 2010 Trend CAED 2010 OPB Proj. 2007 Est. 21,016 2000 14,573 1990 10,762 8,728 7,241 6,574 6,223 4,927 1980 1970 1960 1950 1940 1930 0 5,000 10,000 15,000 20,000 25,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; OPB (State Office of Planning and Budget) CAED (Center for Agribusiness & Economic Development). 30,000 Population Change: 2000-2007 LOSS 0 – 7.2% 7.2 – 16.6% 16.6 – 39.0% 39.0 – 61.5% Avg. GA County = 9.9% GA = 16.6% US = 7.2% Lumpkin Co. 26.5% Primary data source: U.S. Census Bureau (3/08) 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% Lumpkin Co. 86.1% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2007 Property Tax Gross Digest Lumpkin County Residential 44.5% Ag-PreferentialEnviron-Conserv 36.3% Timber * 0.0% Heavy Equipment 0.02% Mobile Home 0.7% Industrial 1.9% Motor Vehicle 3.6% Public Utility 1.5% Primary data source: GA Dept. of Revenue Commercial 11.4% 40% Assessment Value of Property Gross Digest = $1,467,254,690 COUNTY Homestead & Property Exemptions = $1,211,055,176 Net M&O Digest = $256,199,514 Value of exempt property = $188,129,762 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2007 County % Resi- % Agri- % Comdential cultural mercial % Mo% In% % UtilMotor bile dusity trial Veh Home % Timber 0.02 LUMPKIN 44.5 36.3 11.4 1.9 1.5 3.6 0.7 DAWSON 61.9 15.9 15.4 0.3 1.5 4.7 0.1 0.003 HALL 56.3 7.3 16.6 11.3 1.7 6.4 0.4 0.002 FANNIN 71.4 12.0 8.3 0.6 1.5 5.9 0.2 0.006 UNION 71.0 13.0 8.9 0.7 1.1 4.7 0.5 0.000 WHITE 57.0 23.1 9.8 1.2 1.8 6.1 0.8 0.005 Avg. GA Co. 42.4 23.8 12.7 7.0 5.0 Primary data source: GA Dept. of Revenue 7.2 1.1 0.9 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 2007 Farm Gate Value was $11.6 billion. Adding the value of landscape services increased the total agricultural production value to $13.6 billion. ¾ Total food and fiber production and directly related businesses account for a $59 billion output impact on Georgia's $735 billion economy. Production Agriculture: 2007 Georgia Total Agricultural Production Value $13.6 Billion Landscape services Fruits & Nuts 15.3% 1.8% Poultry & Eggs 39.8% Forestry & Products 4.4% Other Income 4.5% Livestock & Ornamental Aquaculture Horticulture 9.8% Vegetables 5.6% 6.6% Row & Forage Crops 12.3% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $390 2007 Farm Gate Value by County in Millions of Dollars What We Know about Lumpkin County ¾ 2007 Farm Gate Value in Lumpkin Co. was $40.5 million. Adding $1.3 million of landscape services increased the total agricultural production value to $41.9 million. ¾ The highest value commodity group was poultry/eggs, representing 77.9% of the total agricultural production value. Lumpkin County 2007 Agricultural Production Value 2007 Agricultural Production Vegetables 0.1% Fruits-Nuts Other Forestry Orn Hort 1.3% 1.0% Landscape Livestock- 0.3% services 7.8% Aquaculture 3.2% 6.8% Row-Forage crops 1.5% 2007 Top Farm Gate Commodities Breeder Pullet Grapes Ag-Tourism Unit 0.7% Hay 0.9% Container 1.3% 0.9% Rest of Nursery Commodities 1.8% Beef Horses 2.1% 3.4% 3.6% Greenhouse 6.1% Layers 10.3% Poultry-Eggs 77.9% Total AG Value = $41.9 million Broilers 68.9% 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 87 92 19 19 19 78 82 19 19 69 74 19 19 59 64 19 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 90 80 70 60 50 40 30 20 10 0 Percent of Farms by Size, 2002 140 Lumpkin Co. Georgia 120 100 80 60 21.3 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 Lumpkin County 40 20 0 1-9 acres Source: 1945-2002 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 500-999 acres 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 7 0 Beef Cows Hay Corn for Grain Source: 1987-2002 (quinquennial) Censuses of Agriculture Layers Broilers How Do We Compare ? Georgia, Lumpkin and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $4,000 $3,500 $3,000 $3,866 $2,500 $3,002 $2,000 $1,918 $1,902 $1,500 $1,000 $500 $1,089 $1,076 $235 $162 $274 $286 $143 $0 ia in on g k s r p o w m a u Ge D L ll Ha in n n Fa Sources: 2002 Census of Agriculture and 2007 Farm Gate Value Report n o i Un $82 What We Did County Economy Modeled ¾ The Center for Agribusiness and Economic Development performed an analysis of the county’s economy, focusing on the role of food and fiber. 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 41.858 2.730 102.150 265.944 34.706 70.508 106.769 171.446 152.902 Percent 4.4 0.3 10.8 28.0 3.7 7.4 11.3 18.1 16.1 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $949 million Lumpkin County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Millions Percent 128.273 13.5% Agriculture + Direct 2.730 0.3% Mining 102.150 10.8% Construction 179.529 18.9% Manufacturing 34.706 3.7% Trans-Utilities-Info 70.508 7.4% Trade 106.769 11.3% Finance-Ins-Real Est 171.446 18.1% Services 152.902 16.1% Government Total County Economic Output = $949 million Lumpkin County Employment Total Jobs = 8,898 Construction 846 Mining 9.5% 15 0.2% AG + Directly Related 817 9.2% Manufacturing 748 8.4% Trans-UtilitiesInfo 225 2.5% Trade 982 11.0% State & Federal Government 686 7.7% Public Education 1,465 16.5% Finance-InsReal Est 252 2.8% Professional Services 1,105 12.4% Other Services 1,758 19.8% Primary data source: Center for Agribusiness & Economic Development, UGA 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 $41.9 million consisting of Farm Gate Value and landscape services comprises 4.4% of the county’s economy. ¾ AG plus directly related businesses (ex. poultry processing, fertilizer mfg., etc.) comprise 13.5% of the county’s economy. Food and Fiber Production and Directly Related Manufacturing as % of Total Output 0 - 10% 10 - 20% 20 - 30% 30 - 50% 50 – 77% Lumpkin Co. 13.5% 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 Indirect $ Millions 41.858 0 Agriculture 0 0.015 Mining 0 0.283 Construction 0 0.234 Manufacturing 0 1.253 Trans-Utilities-Info 0 1.057 Trade 0 1.647 Finance-Ins-Real Est 0 3.485 Services 0 0.107 Government 41.858 8.079 Total Total Impact of Production AG = $49.9 million 5.3% of total economy Lumpkin County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-Real Est Services Government Total Direct $ Millions Indirect $ Millions 128.273 0 0 0 0 0 0 0 0 128.273 0 .050 .821 1.523 4.861 3.077 4.719 8.198 .404 23.653 Total Impact of AG + Directly Related = $151.9 million 16% of total economy Lumpkin County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 817 0 Agriculture + Direct 0 0 Mining 0 9 Construction 0 7 Manufacturing 0 35 Trans-Utilities-Info 0 36 Trade 0 13 Finance-Ins-Real Est 0 131 Services 0 3 Government Total Impact of AG + Directly Related Employment = 1,050 Jobs 11.8% of total employment What These Numbers Mean: A Brief Explanation ¾ Direct impact is $128.3 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $3.1 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 $151.9 million. ¾ The total county output is $949 million. ¾ Thus, food and fiber (directly and indirectly) account for 16% of the total county output. Food and Fiber Production and Directly Related Manufacturing IMPACT as % of Total Output 0 - 10% 10 - 25% 25 - 40% 40 - 60% 60 - 84% Lumpkin Co. 16% 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 #0832A November, 2008