The Economic Importance of Food and Fiber
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1 The Economic Importance of Food and Fiber A Spotlight on Morgan County, Georgia Prepared for Morgan County Cooperative Extension April 2015 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia
2 Trends in Morgan County: Number of Farms Number of Farms, Morgan County Source: (quinquennial) Censuses of Agriculture
3 Trends in Morgan County: Land in Farms, Harvested Cropland & Farms by Size Land in Farms & Harvested Cropland Morgan County Percent of Farms by Size, Land in farms Harvested cropland Morgan Co Georgia acres acres acres acres acres acres Source: (quinquennial) Censuses of Agriculture
4 Agriculture in Georgia Georgia's 2013 Farm Gate Value was $13.59 billion. Adding the value of $2.1 billion of landscape services increased the total agricultural production value to $15.1 billion. Total food and fiber production and directly related businesses account for a $76.9 billion output contribution on Georgia's $809.9 billion economy.
5 What We Know about Morgan County 2013 Farm Gate Value in Morgan Co. was $137.7 million. Adding $23.8 million of landscape services increased the total agricultural production value to $156.9 million. The highest value commodity group was poultry and eggs, representing 49.3% of the total agricultural production value.
6 Morgan County 2013 Agricultural Production Value Other 1.4% Row and Forage Crops 4.3% Fruits & Nuts 0.2% Ornamental Horticulture 8.2% Forestry 1.6% Poultry & Eggs 49.3% Livestock 35%
7 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) economic contribution of food and fiber production and directly related industries?
8 Morgan County Employment Total Jobs = 10,930 Mining % Manufacturing Construction 1, % 5.9% Transp, Info, Public. Util % Trade 1, % Agriculture % State & Federal Government 1, % Service 5, % Primary data source: Center for Agribusiness & Economic Development, UGA
9 An Economic Snapshot of Morgan County How much of Morgan County s total economic output comes from food and fiber production? AG value alone of $156.9 million consisting of Farm Gate Value and landscape services comprises 12.3% of the county s economy. AG plus directly related businesses (ex. Ag Support Services, Processing, etc.) comprise 13.0% of the county s economy.
10 What is the Impact? What is the total (direct and indirect) economic contribution 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 contribution measures output created due to food and fiber production and processing in the county.
11 What Impact Means: A Brief Explanation The economic contribution 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
12 Morgan County Agriculture CONTRIBUTION Sector Direct Total Ag + Landscape 156,913, ,913,760 Mining 0 59,724 Utilities 0 457,703 Construction 0 1,262,691 Manufacturing 0 290,256 Wholesale Trade 0 2,527,205 Retail trade 0 4,146,540 Transportation & Warehousing 0 2,272,953 Information 0 1,105,869 Finance & insurance 0 6,099,806 Real estate & rental 0 11,883,071 Professional- scientific & tech services 0 2,959,419 Management of companies 0 187,782 Administrative & waste services 0 736,468 Educational svcs 0 175,659 Health & social services 0 2,179,727 Arts-entertainment & recreation 0 640,753 Accommodation & food services 0 3,180,362 Other services 0 2,449,852 Government & non NAICS 0 180,641 TOTAL 156,913, ,710,239 Total Contribution of Production AG = $199.7 million 15.7% of total economy
13 Morgan County Production Agriculture + Directly Related Businesses ECONOMIC CONTRIBUTION Sector Direct Total Ag + Related 164,749, ,749,870 Mining 0 62,468 Utilities 0 486,232 Construction 0 1,316,900 Manufacturing 0 303,227 Wholesale Trade 0 2,697,049 Retail trade 0 4,330,924 Transportation & Warehousing 0 2,450,121 Information 0 1,161,465 Finance & insurance 0 6,346,847 Real estate & rental 0 12,396,610 Professional- scientific & tech services 0 3,148,002 Management of companies 0 214,404 Administrative & waste services 0 769,397 Educational svcs 0 182,975 Health & social services 0 2,278,845 Arts- entertainment & recreation 0 672,279 Accommodation & food services 0 3,331,000 Other services 0 2,592,259 Government & non NAICS 0 191,820 Total 164,749, ,682,692 Total Contribution of AG + Related = $209.7 million 16.5% of total economy
14 Morgan County Production Agriculture + Directly Related Industries Employment Contribution Sector Direct Total Ag + Related 1,543 1,543 Mining 0 1 Utilities 0 0 Construction 0 9 Manufacturing 0 2 Wholesale Trade 0 13 Retail trade 0 65 Transportation & Warehousing 0 22 Information 0 4 Finance & insurance 0 42 Real estate & rental 0 42 Professional- scientific & tech services 0 38 Management of companies 0 1 Administrative & waste services 0 18 Educational svcs 0 7 Health & social services 0 36 Arts- entertainment & recreation 0 13 Accommodation & food services 0 63 Other services 0 55 Government & non NAICS 0 2 Total 1,543 1,977 Total Contribution of AG + Related Employment = 1,977 Accounts for 18.1% of employment
15 What These Numbers Mean: A Brief Explanation Direct contribution is $156.9 million. This includes food and fiber production, processing and directly related manufacturing. Indirect contribution from related sectors is $42.8 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.
16 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.
17 Morgan County Food and Fiber Economic Importance - Conclusions The total economic contribution of food and fiber production, processing and direct manufacturing is $209.7 million. The total county output is $1,272.7 million. Thus, food and fiber (directly and indirectly) account for 16.5% of the total county output, considering the multiplier effects.
18 Contact Information Prepared by: Sharon P. Kane, Public Service Associate, Economist Karen Stubbs, Research Professional Center for Agribusiness & Economic Development Dr. Kent Wolfe, Director Adding Value to Georgia's Agricultural Economy Through Research and Extension To learn more about your county, go to: on Resources, then Georgia Statistics System Ag Profile Report
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