agricultural enterprises: an important economic development opportunity

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Agricultural Enterprises: An Important Economic Development Opportunity. Willow Holoubek. Partnering Associations. A-FAN. Livestock Development Empowering communities with awareness of the impact of livestock production to make informed decisions Connecting industry opportunities - PowerPoint PPT Presentation

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Agricultural Enterprises:An Important Economic Development OpportunityWillow Holoubek

Partnering Associations

A-FANLivestock DevelopmentEmpowering communities with awareness of the impact of livestock production to make informed decisionsConnecting industry opportunities

Awareness OutreachConnection farmers and ranchers with consumersHelping Nebraskans become more aware of how important the livestock industry is to their personal economies

The Nebraska Advantage:An interrelated system of crop, livestockand biofuel production capacity unmatchedanywhere else in the country. Nebraska Ranks:

#1 Irrigated Crop Acres (8.6 mi. ac.)#1 Commercial Red Meat Production#1 Cattle on Feed Numbers#2 Corn-Based Ethanol Production#2 Distillers Grain (DGs) Production#3 Corn for Grain Production#4 Soybean Production#5 All Hay Production#6 All Hogs and Pigs#7 Commercial Hog Slaughter

Business Receipts40.7%

Gross State Product26.9%

Labor Income/Earnings25.4%

Employment Numbers23.7%Nebraska Ag as a Percent of the Total EconomyBusiness Receipts40.7%

Gross State Product26.9%

Labor Income/Earnings25.4%

Employment Numbers23.7%Nebraska Ag as a Percent of the Total EconomyFor each $1.00 of crop production value, $0.59 in additional receipts for Nebraska businesses are created, primarily outside of the agricultural production industry. Agriculture Creates Economic VitalityEach $1.00 of livestock sales yields $0.62 in additional final sales for Nebraska businesses outside of the agricultural production industry. Livestock Production Creates Economic VitalityThe Golden Triangle

Nebraskas unique agricultural production complexcomprised of corn, soybeans, bio-fuels and livestock

The Recent Past: Imbalance of Growth Between Our Crop Sectors and Our Livestock Sectors:

In Past Decade: NE Crop Output Value 300% NE Livestock Output Value 75% Our Neighboring States ExpandingTheir Livestock Industries Faster than Nebraska

Livestock Expansion overthe Last Decade:

Cattle & Calves Prod.% Growth

Nebraska+6%Iowa+9%Missouri+8%South Dakota -6%Kansas +2%

Livestock Expansion overthe Last Decade:

Annual Pig Crop #s% Growth

Nebraska+14%Iowa+31%Minnesota+25%Missouri+23%South Dakota+54%

Nebraskas Share

Livestock Expansion overthe Last Decade:

Annual Market Hog Inventory % Growth

Nebraska +3%Iowa+32%Minnesota+20%Missouri -8%Kansas +7%

US Market Pig Inventory

Example: 25% IncreaseIn Finishing FacilitiesDirect Impact:765 Jobs$27 Million Labor & Proprietor Income$55 Million Value-Added

Total Economic Impact2,900 Jobs$98 Million Labor & Proprietor Income$195 Million Value-Added

Local Tax Revenue ImpactsFinishing Facility Property Tax: $ 3.1 Million

Other Property Tax: $ 3.0 Million

Local Sales Tax: $ 322,000.00

TOTAL: $ 6.4 Million 11 Million Bu. Corn

19.5 Million Tn. Distillers Grains

67,200 Tn. Soybean Meal(Over 9% Increase of In-State Utilization of Soybean Meal) Associated In-State Feed Consumption Increase Livestock Expansion overthe Last Decade:

Dairy Cow Inventory % Growth

Nebraska -17%Iowa -1%Colorado+38%Kansas+18%Missouri 0%South Dakota+10%

Milk Cow Inventory vs. Milk Production

For Every 2000 Head Dairy

The Local Community will benefit

Approximately $10 MillionIncrease in Economic Activity

Annually! Livestock Expansion overthe Last Decade:

Egg Production% Growth

Nebraska-10%Iowa+67%Illinois+42%Missouri+15%South Dakota+21%Colorado+23%

Livestock Expansion overthe Last Decade:

Broiler Production% Growth

Nebraska+33%Iowa +6%Missouri+34%South Dakota 0%Colorado 0%Kansas 0%

The total sales of agriculture-related manufacturing industries were $25.57 billion in 2010, approximately 30% more than the combined production value of crops and livestock at the farm/ranch level.Presently, Nebraska exports:

One third of our corn crop (as grain)

More than 40% of distillers grains

More than 80% of soybean meal

More than 25% of annual pig cropFor every bushel and ton of crop commodities and head of feeder livestock shipped out of state, NEBRASKA drops potential value-added economic activity!

Change in economic impact, 2001-2011 The Future:

Significant OpportunitiesParticularly for Hog, Dairy, and Poultry Expansion

Major Economic Development Implications from Livestock Based Value-Added Activity

Development of rural markets resulting in rural community and individual wealth

The Future:

Layering livestock or poultry into existing operations is key to Nebraskas rural development and opening the door for future generations to return home to the farm.

Greg Ibach Nebraska Director of Agriculture

The Future:

3 billion people globally will enter the middle class with more economies to demand protein by 2020.

Natural resources, water and land combined with innovation of crop production will position Nebraska for value added opportunities.

Increased export demands will cement rural economic impact.

Currently 26 Counties have achieved Livestock Friendly Status

Livestock DevelopmentsupportsNebraskas entire economy to strengthen throughout the state.

$$$$$$$$$$$$ Thank You!Information Sources: The 2010 Economic Impact of the Nebraska Agricultural Production Complex The Department of Agricultural Economics June 2012 / Report 192 Eric Thompson, Bruce Johnson, Anil Giri

Animal Agriculture Economic Analysis: The National Overview United Soybean Board

Willow HoloubekExecutive DirectorAlliance for the Future of Agriculture in Nebraska (A-FAN)PO Box 84606 Lincoln, NE 68501-4606Phone: 402.421.4455 Toll free: 1.888.580.2326Cell: 402.710.1110willowh@a-fan.org

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