The Economic Importance of Food and Fiber
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- Lorraine Lawrence
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1 The Economic Importance of Food and Fiber A Spotlight on Polk County, Georgia Prepared by: July 2018
2 Agriculture in Georgia Georgia's 2016 Farm Gate Value was over $13.75 billion. Adding the value of $2.5 billion of landscape services increased the total agricultural production value to $16.25 billion. Total food and fiber production and directly related businesses account for a $73.3 billion output contribution to Georgia's $972 billion economy.
3 What We Know about Polk County 2016 Farm Gate Value in Polk Co. was $28.3 million for agricultural production plus landscape services of $14.6 for a total of $42.9 million. The highest value commodity group was forestry, representing 38.6% of the total Farm Gate production value.
4 Polk County 2016 Farm Gate Production Value Poultry-Egg 8.6% Other 1.8% Row-Forage Crops 14.0% Livestock 22.3% Ornamental Horticulture 14.6% Forestry 38.6%
5 Examining the Economic 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?
6 Polk County Employment Total County Employment = 16,218 Mining % Agriculture % Construction 1, % Manufacturing 3, % Transp, Info, Public. Util % State & Federal Government 1, % Trade 2, % Service 6, % Primary data source: IMPLAN data, compiled by Center for Agribusiness & Economic Development, UGA
7 An Economic Snapshot of Polk County How much of Polk County s total economic output comes from food and fiber production and related industries? AG value alone of $42.9 million-consisting of Farm Gate Value and landscape services (if applicable) comprises 1.7% of the county s economy. AG plus directly related businesses (ex. Ag Support Services, Processing, food & fiber manufacturing, etc.) comprise 9.7% of the county s economy.
8 What is the Economic Contribution? 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 and quantifies their economic role. The indirect contribution measures output created by food and fiber production, processing and spending by employees of those industries
9 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
10 Polk County Agriculture Economic Contribution Sector Direct Total Ag + Landscape Services 42,902,485 42,902,485 Mining 0 23,176 Utilities 0 473,329 Construction 0 304,133 Manufacturing 0 76,398 Wholesale Trade 0 1,162,130 Retail trade 0 1,366,676 Transportation & Warehousing 0 925,284 Information 0 297,651 Finance & insurance 0 916,264 Real estate & rental 0 2,440,876 Professional- scientific & tech services 0 519,353 Management of companies 0 10,391 Administrative & waste services 0 556,705 Educational services 0 26,154 Health & social services 0 956,178 Arts-entertainment & recreation 0 30,629 Accommodation & food services 0 884,347 Other services 0 445,493 Government & non NAICS 0 97,896 TOTAL 42,902,485 54,415,546 Total Contribution of Production AG = $54.4 million 2.1% of total economy
11 Polk County Production Agriculture + Directly Related Industries Contribution Sector Direct Total Ag + Related Industries 247,372, ,372,616 Mining 0 41,884 Utilities 0 2,733,476 Construction 0 1,173,729 Other Manufacturing 0 535,410 Wholesale Trade 0 4,049,376 Retail trade 0 4,504,191 Transportation & Warehousing 0 8,729,860 Information 0 1,157,314 Finance & insurance 0 3,185,779 Real estate & rental 0 7,556,296 Professional- scientific & tech services 0 1,897,989 Management of companies 0 304,976 Administrative & waste services 0 2,695,709 Educational svcs 0 80,766 Health & social services 0 3,091,431 Arts- entertainment & recreation 0 139,417 Accommodation & food services 0 3,229,405 Other services 0 1,477,158 Government & non NAICS 0 499,283 Total 247,372, ,456,063 Total Contribution of AG + Related = $294.5 million 11.5% of total economic output
12 Polk County Production Agriculture + Directly Related Industries Employment Contribution Sector Direct Total Ag + Related Industries 1,518 1,518 Mining 0 0 Utilities 0 2 Construction 0 10 Manufacturing 0 2 Wholesale Trade 0 23 Retail trade 0 54 Transportation & Warehousing 0 54 Information 0 4 Finance & insurance 0 16 Real estate & rental 0 14 Professional- scientific & tech services 0 44 Management of companies 0 3 Administrative & waste services 0 54 Educational services 0 3 Health & social services 0 38 Arts- entertainment & recreation 0 6 Accommodation & food services 0 58 Other services 0 25 Government & non NAICS 0 4 Total 1,518 1,933 Total Contribution of AG + Related Industries Employment = 1,933 Accounts for 11.9% of employment
13 What These Numbers Mean: A Brief Explanation Direct contribution is $247.4 million. This includes food and fiber production, processing and directly related manufacturing. Total contribution includes related sectors and sums to $294.5 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 demand.
14 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 food and fiber and related industries. They take home wages and buy groceries at local stores, which increases demand there.
15 Polk County Food and Fiber Summary The total economic contribution of food and fiber production, processing and direct manufacturing is $294.5 million. The total county output is $2.6 billion. Thus, food and fiber industries (directly and indirectly) account for 11.5% of the total county output, considering the multiplier effects from direct and related industries.
16 Contact Information Prepared by Sharon P. Kane, Sr. Public Service Associate, Economist Center for Agribusiness & Economic Development Dr. Kent Wolfe, Director Adding Value to Georgia's Agricultural Economy Through Research and Extension Check our website for more resources:
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