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Regional Economic Impacts of Florida's Agricultural and Natural Resource Industries1
Alan W. Hodges and W. David Mulkey2Note: The complete document is only available in pdf format. To access the complete document, please click here .
Abstract
The state of Florida has large industries producing fruits and vegetables, sugar, livestock, dairy and meat products, seafood, ornamental plants, forest products, phosphate rock, and an array of associated industries that provide supporting inputs and services and conduct processing and manufacturing. There are distinct differences in the regional distribution of Florida's agricultural and natural resource industries. Economic characteristics and impacts were evaluated for the state of Florida and for eight separate regions of Florida. Each region is comprised of a core metropolitan area and a number of surrounding counties, as defined by the US Commerce Department's Bureau of Economic Analysis, based on employee commuting patterns and other factors. The Implan input-output analysis and social accounting software and associated databases for Florida counties were used to create economic models for each region and to estimate the total economic impacts of over 100 industry sectors in agriculture and natural resources and associated value-added manufacturing. Statewide economic impacts in the year 2000, expressed in year 2002 dollars, included industry output (sales) of $35.2 billion, with sales to markets outside the state (export shipments) of $19.4 billion, personal and business net income (value added) of $14.8 billion, and employment of 338,253 persons. The value added represented 3.1 percent of Florida's gross regional product. When the multiplier effects of export final demand on inter-industry purchases and employee household spending are considered, the total economic impacts were estimated at $62.0 billion in output, $31.0 billion in value added, and 648,550 jobs. Regionally, total value added impacts of the agricultural and natural resource industries were greatest in the Orlando area ($4.31 billion), followed by Miami-Ft. Lauderdale ($3.61 billion), Tampa-St. Petersburg-Clearwater ($2.20 billion), Jacksonville ($1.47 billion), Sarasota-Bradenton ($1.10 billion), Tallahassee ($782 million), Ft. Myers-Cape Coral ($701 million), and Pensacola ($597 million). The largest industry groups in terms of total value added impacts were fruits and vegetables ($2.9 billion), environmental horticulture ($2.8 billion), forest products ($2.0 billion), agricultural inputs and services ($1.4 billion), and other food and fiber manufacturing ($1.7 billion), with lesser impacts for dairy products, field crops, livestock and meat products, mining, seafood products, sugar and confectionary products, and tobacco products. The total value added impact was $1,929 per capita, and the total employment impact was 40 jobs per 1,000 residents. Economic impacts per capita and share of gross regional product indicated that the agriculture and natural resource industries were relatively more important in the Sarasota-Bradenton, Orlando, Jacksonville, and Tallahassee regions than for the state as a whole.Keywords: Florida, agriculture and natural resource industries, economic impact, functional economic region, output, value added, employment, input-output models, multiplier, Implan.
Footnotes
1. This is EDIS document FE380, a publication of the Department of Food and Resource Economics, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. Published April 2003. Please visit the EDIS website at http://edis.ifas.ufl.edu.2. Alan W. Hodges, Assistant-In, and W. David Mulkey, Professor, Department of Food and Resource Economics, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL.
The Institute of Food and Agricultural Sciences (IFAS) is an Equal Opportunity Institution authorized to provide research, educational information and other services only to individuals and institutions that function with non-discrimination with respect to race, creed, color, religion, age, disability, sex, sexual orientation, marital status, national origin, political opinions or affiliations. For more information on obtaining other extension publications, contact your county Cooperative Extension service.
U.S. Department of Agriculture, Cooperative Extension Service, University of Florida, IFAS, Florida A. & M. University Cooperative Extension Program, and Boards of County Commissioners Cooperating. Larry Arrington, Dean.
Copyright Information
This document is copyrighted by the University of Florida, Institute of Food and Agricultural Sciences (UF/IFAS) for the people of the State of Florida. UF/IFAS retains all rights under all conventions, but permits free reproduction by all agents and offices of the Cooperative Extension Service and the people of the State of Florida. Permission is granted to others to use these materials in part or in full for educational purposes, provided that full credit is given to the UF/IFAS, citing the publication, its source, and date of publication.