The Economic Importance of Food and Fiber

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1 The Economic Importance of Food and Fiber A Spotlight on Gilmer County, Georgia Prepared for Gilmer County Cooperative Extension March, 28 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia

2 Total Population Gilmer County 21 Trend CAED 21 OPB Proj. 26 Est ,368 11,11 8,956 8,922 9,963 9,1 7,344 23,456 31,87 31,752 28,175 5, 1, 15, 2, 25, 3, 35, Primary data sources: U.S. Census Bureau, decennial censuses & estimate; CAED (Center for Agribusiness & Economic Development).

3 Population Change: 2-26 LOSS 6.4% % % % Avg. GA County = 9.1% GA = 14.4% US = 6.4% Gilmer Co. 2.1% Primary data source: U.S. Census Bureau (3/7)

4 Percent of Land in Cropland & Forestland: % 4 55% 55 7% 7 85% 85% or more GA Total = 78.5% GA Avg. Co. = 77.3% Metro Avg. Co. = 7.7% Nonmetro Avg. Co. = 82.6% Gilmer Co. 9.2% Primary data sources: U.S. Census of Agriculture, 22 Forest Statistics for Georgia, 1997

5 Components of 26 Property Tax Gross Digest Gilmer County Residential 55.8% Timber *.1% Ag-Preferential- Environ-Conserv 24.5% Mobile Home.7% Motor Vehicle 4.9% Public Utility 2.% Primary data source: GA Dept. of Revenue Commercial 4% Assessment Value of Property 1.% Industrial Gross Digest = $1,326,51,11 2.% STATE Homestead & Property Exemptions = $173,,955 Net M&O Digest = $1,153,5,155 Value of exempt property = $142,522,629 * Timber taxed at 1% based on previous year sales

6 County Property Tax Digest Comparisons: 26 County % Residential % Agricultural % Commercial % Industrial % Motor Vehicle % Other GILMER DAWSON FANNIN GORDON LUMPKIN MURRAY PICKENS Avg. GA Co Primary data source: GA Dept. of Revenue

7 Farm/Forest Revenue : Expenditure Ratios $ of Revenue for Each $ of Expenditure $1.1 $1.18 $1.92 $2.86 $2.7 Commercial Residential $1.17 $1.25 $.64 $.87 $.83 $.9 $.87 $1.93 $3.19 $3.45 Cherokee Jones Carroll Oconee US Avg $. $1. $2. $3. $4. Dorfman, Jeffery, The Economics of Growth, Sprawl and Land Use Decisions (presentation), Dept. of Ag & Applied Economics, UGA, January 24.

8 Agriculture in Georgia Georgia's 26 Farm Gate Value was $1.4 billion. Adding the value of landscape services increased the total agricultural production value to $12.2 billion. Total food and fiber production and directly related businesses account for a $34.5 billion output impact on Georgia's $55 billion economy.

9 Other Income 5.3% Production Agriculture: 26 Georgia Total Agricultural Production Value $12.2 Billion Landscape services 14.7% Poultry & Eggs 36.1% Fruits & Nuts 2.5% Forestry & Products 5.5% Ornamental Horticulture 6.3% Vegetables 6.8% Livestock & Aquaculture 1.4% Row & Forage Crops 12.4% $ - $2 $2 - $45 $45 - $8 $8 - $2 $2 - $ Farm Gate Value by County in Millions of Dollars

10 What We Know about Gilmer County 26 Farm Gate Value in Gilmer Co. was $189.6 million. Adding $891 thousand of landscape services increased the total agricultural production value to $19.5 million. The highest value commodity group was poultry-eggs, representing 93.2% of the total agricultural production value.

11 Gilmer County 26 Agricultural Production Value Livestock- Aquaculture 3.4% Row-Forage crops.6% 26 Agricultural Production Forestry.3% VegetablesOrn Hort.2%.4% Fruits-Nuts 1.% Other.3% Landscape services.5% 26 Top Farm Gate Commodities Horses 1.% Apples 1.% Beef Breeder Pullet 1.3% Dairy 1.1% Unit 4.8% Layers 6.2% Hay Ag Tourism.4%.3% Timber.3% Rest of commodities 1.% Poultry-Eggs 93.2% Broilers 82.7% Total AG Value = $19.5 million

12 Trends in Gilmer County: Number of Farms & Average Farm Size Number of Farms, Gilmer County Average Farm Size R Source: (quinquennial) Censuses of Agriculture Acres Gilmer Co. Georgia R

13 Trends in Gilmer County: Land in Farms & Farms by Size Acres X 1, Land in Farms Gilmer County R Source: (quinquennial) Censuses of Agriculture acres Percent of Farms by Size, acres acres acres Gilmer Co. Georgia acres 1+ acres

14 Trends in Gilmer County Number of Farms by Commodity Beef cows Broilers sold Layers 2+ wks Corn for grain Hay Source: (quinquennial) Censuses of Agriculture

15 How Do We Compare? Georgia, Gilmer and Surrounding Counties Farm Gate Value $ Per Farm (thousands) $ Per Acre $8, $6, $4, $2, $ $957 $29 Georgia Gilmer $7,668 $626 Fannin $3,353 $1,764 $2,982 $2,38 $1,84 $131 $272 $24 $219 $252 Dawson Pickens Gordon Murray Sources: 22 Census of Agriculture and 26 Farm Gate Value Report

16 What We Did County Economy Modeled The Center for Agribusiness and Economic Development performed an analysis of the county s economy, focusing on the role of food and fiber. 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) What is the total (direct and indirect) Impact of food and fiber production and directly related industries?

17 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Gilmer County Economy Agriculture OUTPUT Output in $ Millions Total County Economic Output = $1.7 Billion Percent

18 Gilmer County Economy Agriculture + Directly Related Businesses OUTPUT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Output in $ Millions Total County Economic Output = $1.7 Billion Percent

19 An Economic Snapshot of Gilmer County How much of Gilmer County s total economic output comes from food and fiber production? AG value alone of $19.5 million consisting of Farm Gate Value and landscape services comprises 11.2% of the county s economy. AG plus directly related businesses (ex. poultry processing, logging, etc.) comprise 33.2% of the county s economy.

20 Food and Fiber Production and Directly Related Manufacturing as % of Total Output - 1% 1-2% 2-3% 3-5% 5 77% Gilmer Co. 33.2%

21 What is the Impact? What is the total (direct and indirect) impact of food and fiber production and directly related industries? This 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.

22 What Impact Means: A Brief Explanation 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

23 Agriculture Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Gilmer County Agriculture IMPACT Direct $ Millions Indirect $ Millions Total Impact of Production AG = $223.2 million 13% of total economy

24 Gilmer County Production Agriculture + Directly Related Businesses IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Total Direct $ Millions Indirect $ Millions Total Impact of AG + Directly Related = $716.3 million--42% of total economy

25 Gilmer County Production Agriculture + Directly Related Industries Employment IMPACT Agriculture + Direct Mining Construction Manufacturing Trans-Utilities-Info Trade Finance-Ins-RE Services Government Direct 2,118 Total Impact of AG + Directly Related Employment = 3,199 Jobs Indirect

26 What These Numbers Mean: A Brief Explanation Direct impact is $195.6 million. This includes food and fiber production, processing and directly related manufacturing. Indirect impact from the Trade sector is $15.9 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.

27 What These Numbers Mean: A Brief Explanation (continued) 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. Local stores also hire employees to assist farmers. They take home wages and buy groceries at the local store which increases demand there.

28 Gilmer County Food and Fiber Impact Conclusions The total impact of food and fiber production, processing and direct manufacturing is $716.3 million. The total output is $1.7 billion. Thus, food and fiber (directly and indirectly) account for 42% of the total output.

29 Food and Fiber Production and Directly Related Manufacturing IMPACT as % of Total Output - 1% 1-25% 25-4% 4-6% 6-84% Gilmer Co. 42%

30 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: on Georgia Statistics System Special County Area Report #81A March, 28

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