The Economic Importance of Food and Fiber A Spotlight on Wheeler County, Georgia Prepared for Wheeler County Cooperative Extension August, 2007 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia Total Population Wheeler County 7,323 6,908 2010 Trend CAED 2006 Est. 6,179 2000 4,903 5,155 1990 1980 4,596 1970 5,342 1960 6,712 1950 8,535 1940 9,149 1930 0 2,000 4,000 6,000 8,000 Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development). 10,000 Population Change: 2000-2006 LOSS 0 – 6.4% 6.4 – 14.4% 14.4 – 34% 34 – 53.4% Avg. GA County = 9.1% GA = 14.4% US = 6.4% Wheeler Co. 11.8% Primary data source: U.S. Census Bureau (3/07) 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% Wheeler Co. 89.8% Primary data sources: U.S. Census of Agriculture, 2002 Forest Statistics for Georgia, 1997 Components of 2006 Property Tax Gross Digest Wheeler County Commercial 17.0% Industrial 0.2% Public Utility 4.8% Motor Vehicle 7.8% Mobile Home 1.4% Timber * 2.9% Ag-PreferentialEnviron-Conserv 47.2% Residential 18.8% 40% Assessment Value of Property Gross Digest = $145,736,185 STATE Homestead & Property Exemptions = $20,141,145 Net M&O Digest = $125,595,040 Primary data source: GA Dept. of Revenue Value of exempt property = $1,993,368 * Timber taxed at 100% based on previous year sales County Property Tax Digest Comparisons: 2006 County % Residential % Agri- % Com- % In- % Motor % cultural mercial dustrial Vehicle Other Wheeler 18.8 47.2 17.0 0.2 7.8 9.1 Dodge 32.4 35.5 11.4 3.8 8.1 8.9 Jeff Davis 30.3 18.5 16.4 15.6 10.2 9.0 Laurens 34.7 17.5 18.5 16.3 8.3 4.8 Montgomery 30.7 35.6 10.4 3.1 10.4 9.9 Telfair 19.8 33.3 16.3 18.9 5.6 6.1 Treutlen 28.9 47.6 5.4 0.6 9.3 8.2 Avg. GA Co. 41.9 22.5 12.8 7.6 7.4 7.7 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 2006 Farm Gate Value was $10.4 billion. Adding the value of landscape services increased the total agricultural production value to $12.2 billion. ¾ Total food and fiber production and directly related businesses account for a $34.5 billion output impact on Georgia's $55 billion economy. Production Agriculture: 2006 Georgia Total Agricultural Production Value $12.2 Billion Landscape services Other Income 14.7% 5.3% Poultry & Eggs 36.1% Fruits & Nuts 2.5% Forestry & Products 5.5% Ornamental Horticulture 6.3% Vegetables 6.8% Livestock & Aquaculture 10.4% Row & Forage Crops 12.4% $0 - $20 $20 - $45 $45 - $80 $80 - $200 $200 - $385 2006 Farm Gate Value by County in Millions of Dollars What We Know about Wheeler County ¾ 2006 Farm Gate Value in Wheeler Co. was $37.7 million. Adding $66 thousand of landscape services increased the total agricultural production value to $37.8 million. ¾ The highest value commodity group was vegetables, representing 28% of the total agricultural production value. Wheeler County 2006 Agricultural Production Value 2006 Agricultural Production Fruits-Nuts 1.8% Orn Hort 12.6% 2006 Top Farm Gate Commodities Landscape Other services Poultry-Eggs 5.5% 0.01% Row-Forage 0.2% crops 18.4% LivestockAquaculture 13.1% Vegetables 27.6% Watermelons Horses 2.9% 2.8% Field Nursery 3.8% Straw 4.1% Hay 2.6% Rest of Commodities 30.8% Container Nursery 5.1% Beef 8.5% Forestry 20.9% Pine Straw 9.7% Timber 11.3% Total AG Value = $37.8 million Onions 18.5% Trends in Wheeler County: Number of Farms & Average Farm Size Number of Farms, Wheeler County 500 Wheeler Co. Georgia 400 A cres 156 383 300 218 200 100 Source: 1945-2002 (quinquennial) Censuses of Agriculture R 02 20 97 92 19 19 87 19 82 19 78 19 74 19 69 19 64 19 59 19 49 54 19 1945 1949 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997R 2002 19 45 0 19 900 800 700 600 500 400 300 200 100 0 Average Farm Size Trends in Wheeler County: Land in Farms & Farms by Size 160 140 120 100 80 60 40 20 0 Percent of Farms by Size, 2002 60 Wheeler Co. Georgia 50 40 30 59.7 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 Wheeler County 20 10 0 1-9 acres Source: 1945-2002 (quinquennial) Censuses of Agriculture 10-49 acres 50-179 acres 180-499 acres 500-999 acres 1000+ acres Trends in Wheeler County Number of Farms by Commodity 100 1987 1992 1997 2002 90 80 70 60 50 48 45 40 30 20 11 10 9 10 13 0 Beef Cows Cotton Hay Peanuts Source: 1987-2002 (quinquennial) Censuses of Agriculture Soybeans Corn for Grain How Do We Compare ? Georgia, Wheeler and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $1,400 $1,200 $1,000 $800 $1,216 $957 $600 $631 $406 $400 $200 $0 $289 $209 $242 ia er l g r e o e Ge Wh $115 $269 $79 s is ry n ge e v e d m Da ur g Do a f o f L nt Je o M Sources: 2002 Census of Agriculture and 2006 Farm Gate Value Report $247 $73 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? Wheeler County Economy Agriculture OUTPUT Agriculture Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Output in $ Millions Percent 37.776 1.410 47.104 37.201 8.955 16.236 20.579 28.413 19.1% 0.7% 23.8% 18.8% 4.5% 8.2% 10.4% 14.4% Total County Economic Output = $197.7 million Wheeler County Economy Agriculture + Directly Related Businesses OUTPUT Agriculture + Direct Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Output in $ Millions Percent 84.878 1.410 .003 37.201 8.955 16.236 20.579 28.413 42.9% 0.7% 0.0% 18.8% 4.5% 8.2% 10.4% 14.4% Total County Economic Output = $197.7 million An Economic Snapshot of Wheeler County ¾ How much of Wheeler County’s total economic output comes from food and fiber production? ¾ AG value alone of $37.8 million consisting of Farm Gate Value and landscape services comprises 19% of the county’s economy. ¾ AG plus directly related businesses (ex. logging, etc.) comprise 43% 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% Wheeler Co. 43% 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 Wheeler County Agriculture IMPACT Direct $ Millions Indirect $ Millions 37.776 0 Construction 0 .009 Manufacturing 0 .000 Agriculture 0 1.523 Trans-Utilities-Info 0 1.325 Trade 0 1.365 Finance-Ins-RE 0 1.927 Services 0 2.104 Government 37.776 8.253 Total Total Impact of Production AG = $46 million—23.3% of total economy Wheeler County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions Indirect $ Millions 84.878 0 0 0 0 0 0 0 84.878 0 .012 .000 2.541 2.469 2.492 3.024 3.131 13.668 Total Impact of AG + Directly Related = $98.5 million--50% of total economy Wheeler County Production Agriculture + Directly Related Industries Employment IMPACT Direct Indirect 1,118 0 Construction 0 0 Manufacturing 0 0 Trans-Utilities-Info 0 15 Trade 0 34 Finance-Ins-RE 0 17 Services 0 62 Government 0 3 Agriculture + Direct Total Impact of AG + Directly Related Employment = 1,249 Jobs What These Numbers Mean: A Brief Explanation ¾ Direct impact is $84.9 million. This includes food and fiber production, processing and directly related manufacturing. ¾ Indirect impact from the Trade sector is $2.5 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. Wheeler County Food and Fiber Impact Conclusions ¾ The total impact of food and fiber production, processing and direct manufacturing is $98.5 million. ¾ The total output is $197.7 million. ¾ Thus, food and fiber (directly and indirectly) account for 50% of the total output. Food and Fiber Production and Directly Related Manufacturing IMPACT as % of Total Output 0 - 10% 10 - 25% 25 - 40% 40 - 60% 60 - 84% Wheeler Co. 50% 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 #07-24A August, 2007