Animal Agriculture Economic Analysis:
Massachusetts, 2002-2012
A Report for
United Soybean Board
July 2013
Agralytica
333 North Fairfax Street, Suite 202
Alexandria, VA 22314 USA
Tel:
(703) 739-9090
Fax:
(703) 739-9098
ANIMAL AGRICULTURE ECONOMIC ANALYSIS
The impact of animal agriculture in Massachusetts
Animal Agriculture Economic Analysis:
Massachusetts, 2002-2012
A report for
United Soybean Board
TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................. 1
1.
INTRODUCTION............................................................................ 1
2.
ANIMAL AGRICULTURE SBM USE: MASSACHUSETTS................................. 1
3.
THE IMPACT OF ANIMAL AGRICULTURE IN MASSACHUSETTS ..................... 2
3.1.
3.2.
3.3.
4.
Output, earnings and employment multipliers ............................... 2
Impact estimates for output, earnings, employment, and taxes .......... 3
Long term impact of animal agriculture ...................................... 3
RECENT DEVELOPMENTS AND LONG TERM TRENDS ................................ 4
4.1.
4.2.
Recent developments ............................................................ 4
Long term trends ................................................................. 4
APPENDIX - BASIC LIVESTOCK AND ECONOMIC IMPACT DATA – MASSACHUSETTS ..... 7
i
ANIMAL AGRICULTURE ECONOMIC ANALYSIS
The impact of animal agriculture in Massachusetts
EXECUTIVE SUMMARY
Soybean meal (SBM) plays a modest role in animal agriculture in Massachusetts, which in turn
has a moderate impact on the state’s economy. In Massachusetts:

Animal agriculture in 2012 used an estimated 4,000 tons of SBM: 50% in milk production,
20% for eggs, and 17% in pork production;

At the state level, animal agriculture represented $87 million in revenues, $15 million in
household income, and 640 jobs. In addition, it yielded an estimated $3.9 million in
income taxes and the last census (2007) reported $33 million in property taxes; and

Over the past decade, the contraction of animal agriculture in Massachusetts has led to
decreases of $54 million in economic output, $9.5 million in household wages, 400 jobs,
and $2.4 million in tax revenue.
This report provides a concise look at the impact animal agriculture has on Massachusetts’s
economy.
1. INTRODUCTION
Domestic livestock industries are by far the major source of demand for US soybean meal, and
future soybean demand is tightly linked to the health of those industries. In order to act at the
state and local levels, one needs data and analysis on the economic importance of animal
agriculture at those levels. This report addresses this constraint.
On behalf of the United Soybean Board, Agralytica has compiled data on the breakdown of
animal agriculture by species in each state, estimated soybean meal consumption by species,
and analyzed the economic impact of animal agriculture by calculating its effect on output,
wages, employment and tax revenue. We have also highlighted long-term trends and recent
developments, where relevant.
For explanations on data sources and our analysis, please review our national report, “Animal
Agriculture Economic Analysis: 2002-2012.”
2. ANIMAL AGRICULTURE SBM USE: MASSACHUSETTS
In this section, we provide information on soybean meal use in animal agriculture in the state.
The state database contains information such as: livestock production and value data, taxation
data, and computation of meal use by livestock and poultry.
Animal agriculture in Massachusetts used an estimated 4,000 tons of soybean meal in 2012.
1
ANIMAL AGRICULTURE ECONOMIC ANALYSIS
The impact of animal agriculture in Massachusetts
SBM use by animal agriculture category: Massachusetts
MA
SBM Usage
2012
Share
1,000 s. tons
Percent
Beef
0
6.7%
Pork
1
17.3%
Broilers
0
0.0%
Turkeys
0
0.0%
Eggs
1
19.5%
Milk
2
50.0%
Other
0
6.5%
4
100.0%
TOTAL
Source: NASS, Agralytica
SBM usage in Massachusetts is dominated by milk production, which accounted for 50%; eggs
(20%) and pork (17%) accounted for most of the rest. A gray row indicates a product for which
data was withheld.
3. THE IMPACT OF ANIMAL AGRICULTURE IN MASSACHUSETTS
3.1.
Output, earnings and employment multipliers
To estimate the impact of livestock production on Massachusetts’s economy, we applied RIMS II
multipliers from the Department of Commerce for cattle ranching and farming, dairy cattle and
milk production, poultry and egg production, and other animal production (mostly hogs and
pigs), when applicable. The table below shows the multipliers for Massachusetts. They
represent the impact associated with $1 million of industry sales.
Economic impact multipliers: Massachusetts
MA
Output ($)
Earnings ($)
Employment (jobs)
Cattle & calves
1.5067
0.2439
9.3657
Hogs, Pigs, & Other
1.4366
0.2430
9.4901
Poultry & Eggs
1.5202
0.2518
8.4977
Dairy
1.5341
0.2732
11.8712
Source: RIMS II, BEA, Department of Commerce
The economic impact of animal agriculture in Massachusetts is substantial. $1 million in
production in the above segments yields $1.44-1.53 million in total economic activity,
$240,000-$270,000 in household wages, and 8-12 additional jobs.
2
ANIMAL AGRICULTURE ECONOMIC ANALYSIS
The impact of animal agriculture in Massachusetts
3.2.
Impact estimates for output, earnings, employment, and taxes
When applied to production values for each livestock category, the multipliers above yield an
estimate of the overall economic impact, household earnings, and jobs supported in
Massachusetts by the livestock industries.
Economic impact of animal agriculture - Massachusetts
Total Economic Impact
Change 2002 - % change 2002
2012
2012
- 2012
Output ($1,000)
$
86,847
(54,097)
-38.38%
Earnings ($1,000)
$
15,176
(9,497)
-38.49%
641
(400)
-38.43%
(2,429)
-38.49%
Employment (jobs)
Income taxes ($1,000)
$
3,882
Property Taxes in 2007 ($1,000)
$
32,509
Source: RIMS II, BEA, Department of Commerce; NASS; USDA Census; Agralytica
At the state level, animal agriculture in Massachusetts represents $87 million in revenues, $15
million in household income, and 640 jobs. In addition to the effect on income and jobs,
animal agriculture is a significant source of tax revenues. In Massachusetts in 2012, it yielded
an estimated $3.9 million in income taxes. The last Census of Agriculture (2007) also reported
receipts of $33 million in property taxes.
3.3.
Long term impact of animal agriculture
The contraction of animal agriculture in Massachusetts over the past ten years has led to
decreases of $54 million in economic output, $9.5 million in household wages, 400 jobs, and
$2.4 million in tax revenue.
Note: In order to remove the influence of price changes, we used production unit values (at
2012 prices) as the basis for comparison over time. In addition, our multipliers are for
categories that aggregate poultry and egg production, and hogs and pigs and “other.” Thus,
for example, a decline in egg production can be masked by an increase in broiler or turkey
products.
3
ANIMAL AGRICULTURE ECONOMIC ANALYSIS
The impact of animal agriculture in Massachusetts
4. RECENT DEVELOPMENTS AND LONG TERM TRENDS
4.1.
Recent developments
A proposed gestation crate ban failed to pass in Massachusetts. The ban had been inserted into
swine regulations that were being authorized to replace previous legislation, which had been
inadvertently deleted. Agriculture interests were made aware of the amendment – which
involved no public hearing - and rallied to defeat it.
The Massachusetts Farm Bureau has been working for passage of HB 753, “An Act to promote
the care and well-being of livestock.” It would establish a Livestock Care Standards Board,
consisting of 11 members reflecting farmer, veterinary, and consumer interests.
Massachusetts is expected to pass a GMO labeling bill in early 2014. Animal agriculture groups
are not expecting any direct impact from the law, since animal feed would be exempt. The
bill, like one recently passed by Connecticut, is expected to be a “contingent bill,” only going
into effect once more states have adopted similar measures.
4.2.
Long term trends
Cattle
4

Nationally, cattle production has
decreased by 2.8% in the last decade.

Production has varied by up to 2% from
year to year.

In Massachusetts, cattle production
declined to a low of 7.3 million pounds
in 2011.

Production recovered slightly in 2012
and was 8 million pounds.
ANIMAL AGRICULTURE ECONOMIC ANALYSIS
The impact of animal agriculture in Massachusetts
Hogs and pigs

Nationally, hog and pig production
has increased by 22.7% in the last ten
years.

Production set a record in 2012, at
32.2 billion pounds.

In Massachusetts, production dropped
by 47.3% over the past decade, to 2.3
million pounds.
Eggs
5

National egg production has increased
by 7% over the past decade.

Production reached an all-time high in
2012 at 92.9 billion eggs.

In Massachusetts, egg production has
declined from 90 million eggs in 2002
to 36 million eggs in 2012.
ANIMAL AGRICULTURE ECONOMIC ANALYSIS
The impact of animal agriculture in Massachusetts
Milk

Milk production has grown by 17.8%
over the past decade.

National milk production reached a
record 200 billion pounds in 2012.

In sharp contrast, production in
Massachusetts has dropped by 39.3%
over the past decade, to 219 million
pounds in 2012.
6
ANIMAL AGRICULTURE ECONOMIC ANALYSIS
The impact of animal agriculture in Massachusetts
APPENDIX - BASIC LIVESTOCK AND ECONOMIC IMPACT DATA – MASSACHUSETTS
NASS DATA
Massachusetts
Inventories
MA
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Jan 1 ('03 - '13) Cattle & Calves (1,000 head)
51
50
48
48
47
44
43
43
43
40
41
Dec 1('02 - '12) Hogs & Pigs (1,000 head)
14
12
12
13
13
12
10
10
11
12
11
9,886
4,313
9,166
4,294
10,252
3,267
10,401
4,393
9,732
2,661
9,708
2,687
9,931
3,405
8,544
1,813
7,743
3,539
7,368
3,029
8,046
2,274
1,686
89
1,847
77
1,736
75
1,428
71
1,438
71
1,569
52
36
36
36
36
36
361
332
296
290
278
255
246
243
242
220
219
5,391
1,311
6,049
1,393
7,709
1,367
8,053
1,887
7,811
974
7,677
984
6,816
1,308
5,118
666
5,197
1,660
7,792
1,911
9,221
1,366
2,529
4,200
47,652
369
2,715
5,149
45,152
389
2,760
5,078
51,800
363
2,356
3,591
47,850
396
2,416
3,875
40,032
2,918
4,288
53,550
3,718
51,308
2,603
35,178
2,010
43,560
2,355
48,400
2,498
43,800
369
389
363
396
61,452
60,847
69,077
64,133
55,108
69,417
63,150
43,565
52,427
60,458
56,885
Quantity of
output
Cattle & Calves (1,000 lbs)
Hogs & Pigs (1,000 lbs)
Broilers (1,000 lbs)
Turkeys (1,000 lbs)
Eggs (mil eggs)
M ilk (mil lbs)
Value of
production
($1,000)
Cattle & Calves ($1,000)
Hogs & Pigs ($1,000)
Broilers ($1,000)
Turkeys ($1,000)
Eggs ($1,000)
M ilk ($1,000)
other
Sheep & lambs ($1,000)
Catfish ($1,000)
Trout ($1,000)
M ink ($1,000)
Total
7
ANIMAL AGRICULTURE ECONOMIC ANALYSIS
The impact of animal agriculture in Massachusetts
Census of AG
Number of farms
1997
2002
2007
472
337
751
49
87
53
Dairy cattle and milk production (11212)
338
279
258
Hog and pig farming (1122)
118
72
82
Poultry and egg production (1123)
115
163
480
Sheep and goat farming (1124)
163
211
279
Animal aquaculture and other animal prdxn (1125,1129)
627
1,312
1,776
9,612
12,444
Beef cattle ranching and farming (112111)
(NAICS classification) Cattle feedlots (112112)
Value of sales
Cattle & Calves
6,844
$1,000
Hogs & Pigs
2,638
Poultry & Eggs
16,054
Milk & other dairy products
59,497
Aquaculture (first Census, 1998)
Input purchases
50,485
13,563
76,044
28,546
Total (livestock, poultry & their products)
98,596
107,244
125,338
1,075
1,101
1,450
7,408
6,482
5,819
Livestock and poultry purchased................farms
Other livestock and poultry purchased......farms
$1,000
Feed purchased...............................................farms
$1,000
Economic impacts
MA
Output ($1,000)
Earnings ($1,000)
18,548
n/a
373
556
n/a
2,703
1,776
n/a
816
1,064
n/a
3,779
4,043
2,161
2,698
3,821
31,880
26,253
45,134
Employment (jobs)
Tax ($1,000)
Cattle & Calves
$
13,893
$
2,249
86
$
Hogs, Pigs, Other
$
1,962
$
332
13
$
85
Poultry & Eggs
$
3,797
$
629
21
$
161
$
67,194
$
11,966
520
$
3,061
Total impact $
86,847
$
15,176
641
$
3,882
Dairy
575
Cattle & Calves
$
(3,177) $
(514)
(20) $
Hogs, Pigs, & Other
$
(1,761) $
(298)
(12) $
(76)
Poultry & Eggs
$
(5,591) $
(926)
(31) $
(237)
Dairy
RIMS II
$
(43,568) $
(7,759)
Total impact $
(54,097) $
(9,497)
MA
Output ($)
Earnings ($)
(337) $
(400)
Employment (jobs)
Cattle & calves
1.5067
0.2439
9.3657
Hogs, Pigs, & Other
1.4366
0.2430
9.4901
Poultry & Eggs
1.5202
0.2518
8.4977
Dairy
1.5341
0.2732
11.8712
Federal effective income tax rate
Tax rates
withheld
Other (calculated)
$1,000
Multipliers
13,207
9,481
Breeding livestock purchased.....................farms
Change 2002 - 2012
2,108
12,107
n/a
$1,000
2012 Animal Ag
withheld
12.7%
Federal Social Security tax rate
7.7%
Massachusetts average effective income tax rate
Total
5.3%
25.6%
Average effective tax rate, Best available data 2007 Sources: Tax Policy Institute,
Self Employed and Employee/Employer combined rate. Source: Tax Foundation http://www.taxfoundation.org/taxdata/show/24682.html
Agralytica estimated income tax rate/ Tax Foundation
8
(132)
(1,985)
(2,429)