The Economic Importance of Food and Fiber
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1 The Economic Importance of Food and Fiber A Spotlight on Hart County, Georgia Prepared for Hart County Cooperative Extension June 2015 by: The Center for Agribusiness and Economic Development College of Agricultural and Environmental Sciences The University of Georgia
2 Trends in Hart County: Number of Farms Number of Farms, Hart County Source: (quinquennial) Censuses of Agriculture
3 Trends in Hart County: Land in Farms, Harvested Cropland & Farms by Size Land in Farms & Harvested Cropland Hart County Land in farms Harvested cropland Percent of Farms by Size, 2012 Hart 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 $72.5 billion output impact on Georgia's $826.6 billion economy.
5 What We Know about Hart County 2013 Farm Gate Value in Hart Co. was $324 million. Adding $2 million of landscape services increased the total agricultural production value to $326 million. The highest value commodity group was poultry and eggs, representing 89.4% of the total agricultural production value.
6 Hart County 2013 Farm Gate Production Value Livestock 5.25% Forestry 1.0% Ornamental Horticulture 2.4% Fruits & Nuts 0.12% Row and Forage Crops 2.1% Poultry & Eggs 89.4% Other 0.1%
7 Examining the Contribution 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 Hart County Employment Total Jobs = 9,098 Mining 0 0.0% Construction % Manufacturing 1, % Transp, Info, Public. Util % Trade 1, % Agriculture % State & Federal Government 1, % Service 3, % Primary data source: Center for Agribusiness & Economic Development, UGA
9 An Economic Snapshot of Hart County How much of Hart County s total economic output comes from food and fiber production? AG value alone of $326 million consisting of Farm Gate Value and landscape services comprises 18.8% of the county s economy. AG plus directly related businesses (ex. Ag Support Services, Processing, etc.) comprise 21.2% of the county s economy.
10 What is the Economic Contribution? What is the total (direct and indirect) 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 Economic Contribution Means: A Brief Explanation The 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. Further, agricultural commodities are sold to other sectors as the inputs to production. Labor Seed Other Sectors Utilities
12 Hart County Agriculture Contribution Sector Direct Total Ag + Landscape 326,064, ,064,042 Mining 0 - Utilities 0 2,928,897 Construction 0 1,777,432 Manufacturing 0 483,383 Wholesale Trade 0 3,811,644 Retail trade 0 4,962,274 Transportation & Warehousing 0 2,734,159 Information 0 3,335,625 Finance & insurance 0 3,418,904 Real estate & rental 0 14,131,271 Professional- scientific & tech services 0 2,043,416 Management of companies 0 - Administrative & waste services 0 833,455 Educational svcs 0 205,518 Health & social services 0 4,222,561 Arts-entertainment & recreation 0 114,667 Accommodation & food services 0 2,707,072 Other services 0 2,026,596 Government & non NAICS 0 218,766 TOTAL 326,064, ,019,680 Total Contribution of Production AG = $376 million 21.7% of total economy
13 Hart County Production Agriculture + Directly Related Businesses Contribution Sector Direct Total Ag + Related 367,676, ,676,163 Mining 0 - Utilities 0 3,126,666 Construction 0 1,881,747 Manufacturing 0 39,573,588 Wholesale Trade 0 4,798,791 Retail trade 0 5,117,092 Transportation & Warehousing 0 3,612,486 Information 0 3,514,746 Finance & insurance 0 3,575,142 Real estate & rental 0 14,538,265 Professional- scientific & tech services 0 2,134,780 Management of companies 0 - Administrative & waste services 0 908,415 Educational svcs 0 209,945 Health & social services 0 4,321,650 Arts- entertainment & recreation 0 121,669 Accommodation & food services 0 2,782,024 Other services 0 2,126,387 Government & non NAICS 0 251,332 Total 367,676, ,199,506 Total Contribution of AG + Related = $421.2 million 24.3% of total economy
14 Hart County Production Agriculture + Directly Related Industries Employment Contribution Sector Direct Total Ag + Related Mining 0 0 Utilities 0 3 Construction 0 13 Manufacturing 0 12 Wholesale Trade 0 23 Retail trade 0 75 Transportation & Warehousing 0 31 Information 0 9 Finance & insurance 0 25 Real estate & rental 0 36 Professional- scientific & tech services 0 28 Management of companies 0 0 Administrative & waste services 0 18 Educational svcs 0 8 Health & social services 0 57 Arts- entertainment & recreation 0 2 Accommodation & food services 0 56 Other services 0 54 Government & non NAICS 0 3 Total 962 1,403 Total Contribution of AG + Related Employment = 1,403 Accounts for 15.4% of employment
15 What These Numbers Mean: A Brief Explanation Direct contribution is $367.7 million. This includes food and fiber production, processing and directly related manufacturing. Total contribution includes related sectors and sums to $421.2 million. This includes the captured 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 Hart County Food and Fiber Conclusions The total economic contribution of food and fiber production, processing and direct manufacturing is $421.2 million. The total county output is $1.7 billion. Thus, food and fiber (directly and indirectly) account for 24.3% 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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