ECONOMIC. Contribution. of Arkansas Agriculture
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1 ECONOMIC Cotributio of Arkasas Agriculture 2012
2 Cotets Total Cotributio... 4 Arkasas Couts o Agriculture... 8 The Natural State U.S. Agriculture Crops Sector Stregth i Diversity Aimal Agriculture Sector Protei Power Forestry Sector Ecoomic Egie Across the Board Promotig Sustaiable Farmig Systems Arkasas is Our Campus Uiversity of Arkasas System Divisio of Agriculture 2404 N. Uiversity Aveue Little Rock, Arkasas divisio.uaex.edu
3 $16,003,372,059 Agriculture accouted for $16.0 billio of value added to the Arkasas ecoomy i That s more tha 16 cets of every $1of Value Added. a a Value Added is the sum of employee compesatio, proprietary icome, other property-type icome ad idirect busiess taxes. Source: Ecoomic Cotributio of the Agricultural Sector to the Arkasas Ecoomy i 2010, by McGraw, K., J. Popp, ad W. Miller. Research Report 991. Arkasas Agricultural Experimet Statio, Uiversity of Arkasas System Divisio of Agriculture, Fayetteville. Forthcomig Computed usig 2010 Arkasas database from MIG, Ic. (Latest year for which relevat data were available.) 3
4 Total Cotributio The total ecoomic cotributio of the Aggregate Agriculture Sector icludes three areas of wealth ad job geeratio. Direct Cotributios are geerated by farm productio ad processig of crops, poultry, livestock ad forest products. Idirect Cotributios result whe agricultural firms purchase materials ad services from other Arkasas busiesses a very importat part of the ecoomy i may commuities. Iduced Cotributios result whe employees of agricultural firms ad their suppliers sped a portio of their icome withi Arkasas. These cotributios are reported i terms of Employmet, Labor Icome ad Value Added. Employmet icludes all wage ad salary employees, as well as self-employed workers i a give sector. 4
5 Labor Icome cosists of two parts. First is proprietary icome, which icludes all icome received by self-employed idividuals. Secod is wages, which icludes all paymets to workers icludig beefits. Value Added icludes labor icome plus idirect taxes ad other property-type icome such as paymets for rets, royalties ad divideds. Value added ad Gross Domestic Product (GDP) are equivalet measures i theory but are estimated usig differet methods ad data sources. Govermet paymets paymets made directly to some recipiets i the farm sector are icluded i the cotributio aalysis. The GDP of Food Services ad Drikig Places is icluded i the GDP figures o pages 8 ad 9, but ot i the computatio of direct agriculture cotributios reported elsewhere i this publicatio. Neither iput providers (fertilizer, pesticide ad equipmet maufacturers) or retail locatios (restaurats, grocery stores, law ad garde ceters, etc.) are cosidered part of the Aggregate Agriculture Sector, but some of the ecoomic activity of these idustries ad other retail stores ad iput providers is picked up as idirect ad iduced effects ad icluded i the total cotributio. 5
6 6
7 Value Added by the Aggregate Agriculture Sector i Arkasas, 2010 Cotributio Area % Total % State Millio $ Cotributio Total Productio 2, Processig 5, Ag-Related Total Direct 8, Idirect 4, Iduced 3, TOTAL 16, Agriculture Provides 256,244 jobs, which is approximately oe i every six jobs i Arkasas. Almost $9.8 billio i labor icome, or 16% of the state s total labor icome. 7
8 Arkasas Couts o Agriculture The cotributio of the Agriculture ad Food Sector as a percetage of the GDP by State i Arkasas is greater tha i ay cotiguous state as well as the averages for the Southeast regio ad the Uited States. Agriculture ad Food Sector as a percetage of GDP by State, 2010 State/Regio Percet of GDP by State Arkasas Louisiaa 4.77 Mississippi 9.12 Missouri 7.13 Oklahoma 5.68 Teessee 7.27 Texas 4.32 Southeast a 7.03 U.S Source: U.S. Departmet of Commerce, Bureau of Ecoomic Aalysis, Regioal Accouts Data, GDP does ot iclude the value of idirect or iduced cotributios. Agriculture ad Food Sector icludes productio, processig ad retail. a The Southeast is defied by BEA to iclude the states AL, AR, FL, GA, KY, LA, MS, NC, SC, TN, VA ad WV, ad is ot the sum of Arkasas s cotiguous states listed i the table. 8
9 Agricultural Productio, Processig ad Retail as a percetage of GDP by State, 2010 Source: U.S. Departmet of Commerce, Bureau of Ecoomic Aalysis, Regioal Accouts Data, For compariso amog states, oly the direct cotributios of agricultural productio, processig ad retail are used as a percetage of GDP by State ad GDP for the Uited States. GDP ad Value Added are similar measures of wealth created by a ecoomy; however, differet data sources ad methodologies are used to calculate these measures. GDP does ot iclude the value of idirect or iduced cotributios. 9
10 Arkasas is i the top 25 states i the productio of 24 agricultural commodities. (2011 Productio Year) a No. 1 i Rice No. 2 i Broilers No. 3 i Catfish (foodsize) No. 3 i Cotto (uplad) No. 3 i Turkeys No. 4 i Cottoseed No. 5 i Sweet Potatoes No. 6 i Grai Sorghum No. 9 i Soybeas No. 10 i Chicke Eggs No. 10 i Pecas No. 11 i Beef Cows b No. 12 i Tomatoes No. 13 i Blueberries No. 13 i Grapes No. 14 i Watermelos No. 16 i Sod Productio Acreage c No. 20 i Wheat No. 21 i Cattle ad Calves No. 21 i Cor for Grai No. 21 i Hoey No. 21 i Oats No. 21 i Peaches No. 24 i Hogs ad Pigs (Foototes o page 11.) 10
11 Total Cotributio The Natural State Agriculture ad forestry are vital to the diverse, iteractive ecoomy of Arkasas as well as to our very idetity as The Natural State. Natioal Rakig No. 14 i agricultural cash receipts i Arkasas had 48,300 farms o 13.5 millio acres i (USDA: NASS, 2011 ad 2012) No. 4 i saw-log productio i the South*, with about 18.8 millio acres of forest lad represetig approximately 56% of the total lad base i Source: Johso, T.G., J.W. Betley ad M. Howell, 2009; U.S. Cesus Bureau, 2011; USDA Forest Service Forest Ivetory ad Aalysis, * Icludes 13 states: OK, TX, AR, LA, KY, TN, MS, AL, GA, FL, SC, NC ad VA (Foototes for page 10.) Source: Natioal Agricultural Statistics Service, data for a Data for some states are uavailable due to odisclosure, especially for livestock ad livestock products commodities. As a result, these states are ot icluded i the rakigs, which may affect Arkasas s actual rak. b Beef cows is a Ja. 1, 2011, ivetory comprised of beef cows that have calved ad beef cow replacemet heifers 500 pouds ad over. c Source: Cesus of Agriculture, data for 2007; Haydu, J.J., A.W. Hodges, ad C.R. Hall,
12 Highlights of Arkasas Agriculture Year Productio (thousads) Rice ,675 cwt. Broilers ,380,000 lbs. Catfish (foodsize) ,700 lbs. Cotto (uplad) ,896 bales Turkeys ,700 lbs. Cottoseed tos Sweet Potatoes cwt. Grai Sorghum ,640 bu. Soybeas ,260 bu. Chicke Eggs ,236,000 eggs Pecas ,600 lbs. Beef Cows a ,116 head Tomatoes cwt. Blueberries lbs. Grapes ,980 lbs. Watermelo cwt. Turfgrass b acres Wheat ,860 bu. Cattle ad Calves ,426 lbs. Cor for Grai ,710 bu. Hoey ,240 lbs. Oats bu. Peaches ,400 lbs. 12
13 (Cotiued) Year Productio (thousads) Hogs ad Pigs ,380 lbs. Hay ,131 tos Timber ,560 tos Highest commodity productio levels for the years Source: Natioal Agricultural Statistics Service, data for , ad Arkasas Forestry Commissio, a Beef cows is a Ja. 1, 2011, ivetory comprised of beef cows that have calved ad beef cow replacemet heifers 500 pouds ad over. b Source: Cesus of Agriculture, data for
14 Sapshot U.S. Agriculture Arkasas s diverse portfolio of livestock products ad crops supports the value of the agriculture sector year i ad year out. Natioally, Arkasas raked 21st i et farm icome i 2010, with a value of $1.34 billio a out of the U.S. $79.06 billio a (ERS, 2012). The total value of Arkasas cash receipts decreased for the secod year i a row ad lost 2% from $7.83 billio a i 2009 to $7.69 billio a i However, Arkasas s total cash receipts were still above the 10-year average of $7.48 billio a. U.S. cash receipts fared better from 2009 to 2010, gaiig 1% from $ billio a i 2009 to $ billio a i The largest percetage icreases were attributed to tomatoes (172%) ad peaches (126%). Tomato yield per acre icreased 166% from 2009 to 2010, resultig i a 192% icrease i hudredweight produced. Peach yield per acre icreased 100% from 2009 to 2010, resultig i a 153% icrease i utilized tos produced. Yields i 2009 were depressed due to record raifall, ad while they icreased i 2010, record heat still preveted most from reachig their potetial. Wheat (-60%) ad hay (-25%) experieced the largest percet decreases. Wheat was affected by a 62% decrease i 14
15 acres harvested, resultig i a 53% declie i bushels produced. Hay yield per acre decreased 18%, resultig i a 14% decrease i tos produced. Farm real estate owers i the state should recogize the value of their ivestmets. I 2010, the average value per acre of farm real estate i Arkasas was $2,500 b ; 16.8% higher tha the atioal average of $2,140 b. Of Arkasas s cotiguous states, oly Teessee claimed a higher per acre value tha Arkasas i 2010 ($3,450 b ) (NASS, 2012). a real 2010 dollars b omial 2010 dollars 15
16 Direct Cotributio Crops Sector The crops sector icludes all eterprises egaged i the productio ad processig of cotto, food ad feed grais, hay ad pasture, fruits, uts, vegetables ad oil bearig crops. Direct cotributio of crops Employmet Wages Labor Icome Value Added 60,431 jobs $871 Millio $1,731 Millio $2,788 Millio 16
17 17
18 Direct Cotributio Crops Stregth i Diversity Arkasas is the leadig producer ad processor of rice i the U.S. (Richardso ad Outlaw, 2010). The rice idustry (rice farmig ad millig) has a direct cotributio of 1 i 6 crops jobs; $1 i every $5 of crops labor icome; ad $1 i every $5 of crops value added. Soybea farmig is the umber oe crop productio idustry i Arkasas with a direct value added cotributio of $520 millio. The productio of soybeas, rice, wheat, cor, grai sorghum, oats ad cotto accouted for 35% of the Crops Sector s direct value added. Remaiig direct value added was comprised of the productio (5%) of a variety of locally importat crops (hay ad forage, melos, fruits, vegetables, pecas, turfgrass ad orametal plats) ad the processig of crops (60%) i the state. This diversity is a major asset i weatherig dowturs i a give commodity. 18
19 2011 Commodity Productio Commodity Acres Harvested Productio Value (thousads) (thousads) (thousad $) Broilers a 5,855,600 lbs. 2,728,710 Soybeas 3, ,260 bu. 1,491,120 Rice 1,154 78,100 cwt. 1,054,350 Cotto (uplad) b 660 1,290 bales 576,475 Cattle ad Calves 533,014 lbs. 484,752 Cor for Grai ,840 bu. 457,808 Turkeys a 603,900 lbs. 411,860 Chicke Eggs a 2,951,000 eggs 406,174 Timber 20,417 tos 352,000 Hay 1,400 2,247 tos 223,971 Wheat ,160 bu. 221,676 Cottoseed b 442 tos 118,014 Hogs ad Pigs 83,696 lbs. 94,259 Grai Sorghum 90 6,480 bu. 37,014 Catfish (foodsize) 25,500 lbs. 26,775 Turfgrass acres 16,392 Tomatoes cwt. 14,720 Sweet Potatoes cwt. 10,017 Pecas 2,600 lbs. 4,778 Watermelo cwt. 3,657 Peaches 1.2 3,520 lbs. 2,728 Oats bu. 2,700 Hoey 1,408 lbs. 2,267 Grapes 0.6 2,200 lbs. 1,080 Blueberries lbs. 692 Total 7,637 8,743,959 Sources: Natioal Agricultural Statistics Service, 2012, ad Arkasas Forestry Commissio, 2012, except Turfgrass, Cesus of Agriculture, data for a Total Poultry Idustry (Broilers, Turkeys ad Chicke Eggs): $3,547M b Total Cotto Idustry (Cotto (Uplad) ad Cottoseed): $694M 19
20 Direct Cotributio Aimal Agriculture Sector The aimal agriculture sector icludes productio ad processig of poultry, eggs, beef ad dairy products, hogs ad pigs ad other aimals. Beef cattle ad poultry are compaio eterprises o may farms, with poultry providig cash flow ad fertilizer for pastures. Aquaculture is a major eterprise ad is ofte a compaio to row crop farmig i the Delta regio JupiterImages Corporatio 20
21 Direct cotributio of aimal agriculture Employmet 52,050 jobs Wages Labor Icome Value Added $1,512 Millio $1,844 Millio $2,565 Millio 21
22 Direct Cotributio Aimal Agriculture Protei Power Arkasas is a leadig producer, processor ad marketer of protei products. Poultry ad egg productio ad processig is the leadig idustry, with direct cotributios of: 1 i 4 agricultural jobs; Almost $1 i every $3 of agricultural wages ad icome; ad $1 i every $5 of agricultural value added. Cattle are raised i every couty, with a Jauary 1, 2012, ivetory of 1,670,000 head. Of these, 1,024,000 were beef cows. The swie ivetory for December 1, 2011, was 107,000 head. Foodsize catfish umbered 13,090,000 o Jauary 1, Source: Natioal Agricultural Statistics Service, data for 2011 ad PhotoSpi 22
23 Direct cotributio of poultry Employmet 37,343 jobs Wages $1,196 Millio Labor Icome $1,507 Millio Value Added $1,846 Millio 2012 PhotoSpi 23
24 Direct Cotributio Forestry Sector The forestry sector icludes forest products, furiture, ad wood ad paper processig. Timber acreage stadig icludes the followig forest-type groups: 41% oak ad hickory; 30% loblolly ad shortleaf pie; 11% oak ad pie; 11% oak, gum ad cypress; 5% elm, ash ad cottowood; ad 3% other forest-type groups. a a Numbers may ot sum to 100% due to roudig. Source: USDA Forest Service Forest Ivetory ad Aalysis,
25 Direct cotributio of forestry Employmet 27,081 jobs Wages Labor Icome Value Added $1,381 Millio $1,494 Millio $2,559 Millio 25
26 Direct Cotributio Forestry Ecoomic Egie Forestry is the leadig employer i South Arkasas oe of the atio s leadig timber-producig regios. Paper mills, saitary paper product maufacturig, sawmills ad wood preservatio, paperboard cotaier maufacturig, ad commercial loggig cotribute: 60% of forestry jobs; Two-thirds of wages ad icome; ad 68% of value added. A Multifaceted Resource Forest-based tourism, recreatio, watershed protectio, wildlife habitat ad aesthetic values are vital to the ecoomy, evirometal health, culture ad idetity of Arkasas. 26
27 Direct cotributio of paper mills, saitary paper product maufacturig, sawmills ad wood preservatio, paperboard cotaier maufacturig, ad commercial loggig Employmet Wages Labor Icome Value Added 16,300 jobs $880 Millio $971 Millio $1,736 Millio 27
28 Total Cotributio Across the Board Arkasas agriculture geerates jobs i all 20 idustries i the North America Idustry Classificatio System (NAICS) used for ecoomic aalysis. Employmet geerated by agriculture i top five NAICS idustries Maufacturig Agriculture, Forestry, Fishig ad Hutig Health ad Social Services Retail Trade 76,781 jobs 75,359 jobs 12,386 jobs 12,035 jobs Trasportatio ad Warehousig 11,782 jobs Top Five Total 188,343 jobs (74% of all jobs geerated by agriculture) Source: U.S. Departmet of Commerce, Bureau of Ecoomic Aalysis, Regioal Accouts Data, Based o 2-Digit NAICS Aggregatio (U.S. Cesus Bureau, 2006) 28
29 The far-reachig cotributios of agriculture are see i the distributio of value added throughout the ecoomy. Value Added geerated by agriculture i top five NAICS idustries Maufacturig $5,997 Millio Agriculture, Forestry, $2,606 Millio Fishig ad Hutig Real Estate ad Retal $1,308 Millio Wholesale Trade $1,132 Millio Trasportatio ad Warehousig $841 Millio Top Five Total $11,884 Millio (74% of all value added geerated by agriculture) Source: U.S. Departmet of Commerce, Bureau of Ecoomic Aalysis, Regioal Accouts Data, Based o 2-Digit NAICS Aggregatio (U.S. Cesus Bureau, 2006) 29
30 Promotig Sustaiable Farmig Systems Divisio team helps farmers fight resistat weeds The Divisio of Agriculture s Resistat Weed Maagemet Team is addressig oe of the most importat issues i Arkasas agriculture: glyphosateresistat weed populatios. Although glyphosateresistat soybea ad cotto varieties have improved weed cotrol i those crops, repeated exposure to the same herbicide has resulted i emergece of resistat weed populatios. 30
31 Divisio of Agriculture weed scietists aticipated the emergece of resistat weed populatios ad developed ad promoted practices to avoid or delay their emergece. Research has documeted beefits of practices such as deep tillage ad cover crops ad has provided details o crop-specific recommedatios. Basic priciples for maagig a resistat weed populatio iclude the followig practices: Plat i a weed-free seedbed. Apply preplat or preemergece herbicide. Overlap residual herbicides for cotiuous cotrol. Apply herbicides at fully recommeded rates. Use multiple effective modes of actio agaist the most resistat proe weeds. Scout fields ad cotrol all escapes. Remove potetially resistat weeds through ad after harvest before they produce seed. Maage weeds alog field edges. 31
32 Promotig Sustaiable Farmig Systems The Ceter for Agricultural ad Rural Sustaiability The missio of the Divisio of Agriculture s Ceter for Agricultural ad Rural Sustaiability (CARS) is to icrease prosperity for rural Arkasas through sustaiable practices. The Ceter has idetified three major focus areas: Sustaiability Idices measure key impact areas ad treds over time, foster productive dialogue ad promote progress toward sustaiability. Life Cycle Aalysis quatify the evirometal ad social impacts of a product by measurig the iputs ad outputs associated with its supply chai. 32
33 Food Idustry Program research, educatio ad outreach focused o stregtheig farm to retailer coectios ad promotig locally produced foods. CARS faculty ad staff have costructed a portfolio of life cycle assessmets (LCAs) for various agricultural crops icludig cotto, cocoa, cor, dairy products, peauts ad pork. These LCAs provide the baselie data ecessary for agricultural sector-level strategies for icreasig the safety, security, ad stability of U.S. products. They also support developmet of farm-level sustaiability metrics that are iformed by sciece, outcomes-based, trasparet, ad techology-eutral. CARS faculty ad staff are iteratioally recogized leaders i the sciece of sustaiable agriculture. 33
34 Arkasas is Our Campus The Uiversity of Arkasas System s Divisio of Agriculture coducts research ad extesio programs to support Arkasas agriculture i its broadest defiitio. Our employees iclude Cooperative Extesio Service faculty i all 75 couties, Agricultural Experimet Statio scietists ad Extesio specialists o five uiversity campuses ad at five research ad extesio ceters, ad support persoel at seve research statios ad five other uits. 34 divisio.uaex.edu
35 Locatios 35
36 divisio.uaex.edu
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