The Economic Importance of Food and Fiber A Spotlight on Elbert County, Georgia Prepared for Elbert County Cooperative Extension October, 2008 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Elbert County 20,582 20,966 20,525 20,511 18,949 18,758 17,262 17,835 18,585 19,618 18,485 2010 Trend CAED 2010 OPB Proj. 2007 Est. 2000 1990 1980 1970 1960 1950 1940 1930 0 5,000 10,000 15,000 20,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; OPB (State Office of Planning and Budget) CAED (Center for Agribusiness & Economic Development). 25,000 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% Elbert Co. .01% 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% Elbert Co. 81.4% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2007 Property Tax Gross Digest Elbert County Residential 37.7% Ag-PreferentialEnviron-Conserv 28.9% Timber * 0.4% Heavy Equipment 0.001% Mobile Home 1.2% Motor Vehicle 7.7% Primary data source: GA Dept. of Revenue Public Utility 3.9% Industrial 6.4% Commercial 13.8% 40% Assessment Value of Property Gross Digest = $600,092,407 COUNTY Homestead & Property Exemptions = $93,576,444 Net M&O Digest = $506,515,963 Value of exempt property = $63,680,308 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2007 County % Resi- % Agri- % Comdential cultural mercial % Industrial % Mo% % % UtilMotor bile Timity Veh Home ber ELBERT 37.7 28.9 13.8 6.4 3.9 7.7 1.2 HART 57.1 20.3 5.9 7.5 2.8 5.5 0.8 0.05 LINCOLN 59.7 24.6 4.8 0.3 2.1 6.3 1.4 MADISON 45.9 32.6 4.8 2.0 5.4 7.9 1.3 0.05 OGLETHORPE 38.7 45.7 4.3 0.6 2.3 6.6 0.9 0.9 WILKES 31.0 38.6 12.9 2.6 3.3 6.6 1.6 3.3 Avg. GA Co. 42.4 23.8 12.7 7.0 5.0 7.2 1.1 0.9 Primary data source: GA Dept. of Revenue 0.4 0.8 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% Ornamental Horticulture 5.6% Livestock & Aquaculture Vegetables 9.8% 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 Elbert County ¾ 2007 Farm Gate Value in Elbert Co. was $104 million. Adding $387 thousand of landscape services increased the total agricultural production value to $104.4 million. ¾ The highest value commodity group was poultry/eggs, representing 85.7% of the total agricultural production value. Elbert County 2007 Agricultural Production Value 2007 Top Farm Gate Commodities 2007 Agricultural Production Veges-FruitsOrn Hort Nuts Forestry Other 3.3% 0.04% 2.2% 0.9% LivestockAquaculture 4.8% Row-Forage crops 2.8% Deer hunting Hay Cotton 1.2% 0.8% Dairy leases 0.7% 0.3% Timber Rest of 2.2% Commodities 2.1% Horses 1.7% Landscape services 0.4% Beef 2.3% Greenhouse 2.7% Layers 14.0% Poultry-Eggs 85.7% Total AG Value = $104.4 million Broilers 71.9% Trends in Elbert County: Number of Farms & Average Farm Size Number of Farms, Elbert County Average Farm Size 300 2500 Elbert Co. Georgia 2000 218 200 A cres 1500 1000 438 500 0 145 100 R 02 20 97 92 19 19 87 19 82 19 78 19 74 19 64 69 19 19 54 59 19 19 49 45 19 Source: 1945-2002 (quinquennial) Censuses of Agriculture 19 02 20 R 92 97 19 19 87 19 82 19 78 19 74 19 69 19 64 19 59 19 54 19 49 19 19 45 0 Trends in Elbert County: Land in Farms & Farms by Size 200 180 160 140 120 100 80 60 40 20 0 Percent of Farms by Size, 2002 Elbert Co. Georgia 225 200 175 63.4 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 Elbert County 150 125 100 75 50 25 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 Elbert County Number of Farms by Commodity 1987 1992 1997 2002 300 267 250 186 200 150 100 50 10 17 9 4 0 Beef Cows Milk Cows Broilers Wheat Source: 1987-2002 (quinquennial) Censuses of Agriculture Cotton Hay How Do We Compare ? Georgia, Elbert and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $4,269 $1,076 $235 ia g r o Ge rt e Elb $ Per Acre $3,767 $3,713 $1,640 $492 $238 $496 $74 rt Ha $377 pe on r oln s i c o d th Lin e Ma l Og Sources: 2002 Census of Agriculture and 2007 Farm Gate Value Report $576 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? Elbert County Economy Agriculture OUTPUT Output in $ Millions 104.414 50.892 38.200 407.178 31.818 128.247 35.598 101.284 140.316 Percent 10.1 4.9 3.7 39.2 3.1 12.4 3.4 9.8 13.5 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total County Economic Output = $1.038 Billion Elbert County Economy Agriculture + Directly Related Businesses OUTPUT Output in $ Millions Percent 214.469 20.7 Agriculture + Direct 50.892 4.9 Mining 38.200 3.7 Construction 297.123 28.6 Manufacturing 31.818 3.1 Trans-Utilities-Info 128.247 12.4 Trade 35.598 3.4 Finance-Ins-Real Est 101.284 9.8 Services 140.316 13.5 Government Total County Economic Output = $1.038 Billion Elbert County Employment Total Jobs = 9,246 Mining 228 2.5% Construction 394 4.3% Manufacturing 1,808 19.6% Trans-UtilitiesInfo 293 3.2% AG + Directly Related 1,137 12.3% State & Federal Government 762 8.2% Public Education 962 10.4% Trade 1,646 17.8% Other Services 1,053 11.4% Professional Services 706 7.6% Finance-InsReal Est 258 2.8% Primary data source: Center for Agribusiness & Economic Development, UGA An Economic Snapshot of Elbert County ¾ How much of Elbert County’s total economic output comes from food and fiber production? ¾ AG value alone of $104.4 million consisting of Farm Gate Value and landscape services comprises 10.1% of the county’s economy. ¾ AG plus directly related businesses (ex. poultry processing, logging, etc.) comprise 20.7% 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% Elbert Co. 20.7% 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 Elbert County Agriculture IMPACT Direct $ Millions Indirect $ Millions 104.414 0 Agriculture 0 .199 Mining 0 .156 Construction 0 1.216 Manufacturing 0 2.321 Trans-Utilities-Info 0 7.961 Trade 0 1.534 Finance-Ins-Real Est 0 3.820 Services 0 3.285 Government 104.414 20.492 Total Total Impact of Production AG = $124.9 million 12.0% of total economy Elbert County Production Agriculture + Directly Related Businesses IMPACT Direct $ Millions Indirect $ Millions 214.469 0 Mining 0 .323 Construction 0 .424 Manufacturing 0 1.805 Trans-Utilities-Info 0 4.253 Trade 0 15.291 Finance-Ins-Real Est 0 3.622 Services 0 9.832 Government 0 5.986 214.469 41.536 Agriculture + Direct Total Total Impact of AG + Directly Related = $256 million 24.7% of total economy Elbert County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 1,137 0 Agriculture + Direct 0 1 Mining 0 5 Construction 0 8 Manufacturing 0 38 Trans-Utilities-Info 0 182 Trade 0 25 Finance-Ins-Real Est 0 151 Services 0 10 Government Total Impact of AG + Directly Related Employment = 1,558 Jobs 16.8% of total employment What These Numbers Mean: A Brief Explanation ¾ Direct impact is $214.5 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $15.3 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. Elbert County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $256 million. ¾ The total county output is $1.038 billion. ¾ Thus, food and fiber (directly and indirectly) account for 24.7% 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% Elbert Co. 24.7% 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 #08-28A October, 2008