The Economic Importance of Food and Fiber Prepared for Wheeler County Cooperative Extension

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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
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