Houston County, Alabama AGRICULTURE DAMAGE

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1 HURRICANE MICHAEL Houston County, Alabama AGRICULTURE DAMAGE 2018 ASSESSMENT REPORT michaelrecovery info.com Hurricane Michael made landfall on October 10, 2018, as a Category 4 storm with 155 miles per hour winds, making it the strongest storm to hit the continental United States since With very high winds, excessive rainfall, and a large storm surge, significant damage was expected and did occur. Eight counties (Barbour, Coffee, Covington, Dale, Geneva, Henry, Houston, and Russell) in southeastern Alabama sustained major direct damage in many industries, much of which occurred in areas with significant agricultural and timber production and processing. While direct damages were large, other industries that support these directly affected industries also have been and will be affected in the coming months and years. For example,the ability to irrigate (in some cases), tend, and harvest crops will be slowed or prevented altogether. Farm structures, other infrastructure, and processing equipment (i.e., cotton gins) will need to be rebuilt or replaced. This report outlines the economic impact of the storm including and beyond the direct losses in the study area. The projected economic losses shown in this report assume no governmental disaster support is provided to Wiregrass farmers. These losses are tempered if disaster programs are provided to affected farmers. A positive trickle-down effect will lessen the losses to related industries and households. The Alabama Cooperative Extension System has gathered the direct loss data and provided the projected indirect and induced losses to inform the public policy discussion that must occur. The Economic Impact Analysis was conducted by Decision Innovation Solutions (info@decision-innovation.com). Respectfully submitted, Hurricane Michael Task Force Alabama Cooperative Extension System The Alabama Cooperative Extension System (Alabama A&M University and Auburn University) is an equal opportunity educator and employer by the Alabama Cooperative Extension System. All rights reserved. Everyone is welcome!

2 tville Hurricane Michael Wind & Damage Map Esto WIND SPEED Cottondale WIND SPEED Westville KNOTS (39-57 mph) KNOTS (58-73 mph) Esto Freeport Marianna Bonifay Chattahoochee WIND SPEED 64+ Wausau KNOTS Fountain(74+ mph) Cottondale Marianna Bonifay Chattahoochee Wausau Fountain Barbour County Coffee County Covington County Dale County Henry County Crop Damage Houston County Geneva County Russell County 0% 50% 100%

3 Hurricane Michael Agriculture Damage Assessment COUNTY BARBOUR COFFEE COVINGTON DALE GENEVA HENRY HOUSTON RUSSELL ENTERPRISE TOTAL Corn ($8,224) ($53,199) - ($21,183) ($94,166) ($181,973) ($125,739) ($1,958) ($486,442) Cotton ($3,314,819) ($7,750,304) ($2,817,057) ($7,687,770) ($22,007,246) ($16,765,316) ($46,077,304) ($1,326,282) ($107,746,098) Farm infrastructure - ($750,000) - ($75,000) ($3,390,000) ($4,635,114) ($3,071,500) - ($11,921,614) Horticulture ($135,000) ($96,336) ($205,000) ($2,522,923) ($15,000) ($2,974,259) Irrigation infrastructure ($1,522,000) ($504,000) ($7,607,852) - ($9,633,852) Livestock ($2,130,484) ($1,785,105) - ($2,535,737) ($5,283,285) ($4,137,964) ($8,514,944) ($130,531) ($24,518,050) Peanut ($303,062) ($1,369,411) - ($1,186,546) ($2,551,306) ($1,715,558) ($3,927,816) ($250,308) ($11,304,007) Pecan ($90,000) ($30,375) ($50,625) ($326,250) - ($497,250) Pine straw - ($185,825) - ($156,546) ($3,282,048) ($1,093,400) ($7,098,720) - ($11,816,539) Poultry - ($110,627) - ($165,289) ($363,485) ($194,016) ($543,572) - ($1,376,989) Soybean ($76,325) ($146,451) - ($14,206) ($263,456) ($15,013) ($724,182) ($10,073) ($1,249,706) Timber ($47,022) ($47,022) - ($47,022) ($47,022) ($726,020) ($19,917,001) ($47,022) ($20,878,131) COUNTY TOTAL ($6,104,936) ($12,197,944) ($2,817,057) ($11,889,299) ($38,930,725) ($30,223,999) ($100,457,803) ($1,781,174) ($204,402,937) Economic Impact The following table breaks down the total impacts by associated round of economic activity for all affected industries. TAXES (FEDERAL, STATE & LOCAL) IMPACT TYPE EMPLOYMENT LABOR INCOME OUTPUT ($22,869,935) Direct effect -1,511 ($59,463,889) ($204,402,937) Indirect effect -658 ($25,667,647) ($61,402,662) Induced effect -344 ($10,978,994) ($41,414,874) TOTAL EFFECT -2,512 ($96,110,530) ($307,220,473) Indirect effects are those experienced by all participants in the supply chain except for the directly affected industries. It includes suppliers and those who supply the suppliers. Induced or household effects are from the absence of household spending due to loss of business activity.

4 Esto Cottondale Marianna Bonifay Westville Houston Wausau County The following table breaks down the total impacts by associated round of economic activity for all affected industries. Fountain Freeport Economic Impact Chattahoochee IMPACT TYPE AGRICULTURE DIRECT LOSSES Estimated Economic Loss by Commodity EMPLOYMENT LABOR INCOME OUTPUT Direct effect -743 ($20,444,033) ($100,457,803) Cotton ($46,077,304) Indirect effect -302 ($9,506,975) ($24,753,882) Timber ($19,917,001) Induced effect -172 ($6,160,696) ($20,452,991) Livestock ($8,514,944) TOTAL EFFECT -1,216 ($36,111,704) ($145,664,676) Irrigation infrastructure ($7,607,852) Pine straw ($7,098,720) Peanut ($3,927,816) Farm infrastructure ($3,071,500) Horticulture ($2,522,923) Soybean ($724,182) Poultry ($543,572) Pecan ($326,250) Corn ($125,739) COUNTY TOTAL ($100,457,803) TAXES (FEDERAL, STATE & LOCAL) ($10,627,616) Indirect effects are those experienced by all participants in the supply chain except for the directly affected industries. It includes suppliers and those who supply the suppliers. Induced or household effects are from the absence of household spending due to loss of business activity.

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