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Economic Impacts of Agricultural and Natural Resource Industries in Florida, 20031
Alan W. Hodges and W. David Mulkey2Estimates of economic impacts were developed for the agricultural and natural resource industries in Florida in 2003, based on Implan data for Florida, which are derived from the National Income and Product Accounts of the United States and various regional data sources (MIG, 2005). Over 100 individual sectors were identified as related to agriculture and natural resources, including sectors for commodity production, processing and manufacturing, and associated input suppliers and supporting services. However, wholesale and retail distribution of food and kindred products, restaurants, and other food service establishments were excluded from the analysis, since these are not strictly related to agriculture or natural resources. Estimates of total regional economic impacts for each sector were computed using Implan SAM multipliers, including the indirect and induced effects of domestic and foreign export sales outside Florida. Indirect effects represent the impacts of allied businesses that supply inputs to the agricultural and natural resource industries, while induced effects represent the impacts of industry employee household spending. Values were expressed in 2005 U.S. dollars using the Gross Domestic Product (GDP) Implicit Price Deflator (U.S. Department of Commerce), which restated values for 2003 approximately 5.7 percent higher. Results of the analysis are shown in the following tables: Table 1 summarizes the impact estimates by major industry groups; Table 2 provides detailed estimates for individual sectors within each group; Table 3 gives value added impacts in nine economic regions of Florida; Table 4 indicates the change in value added impacts over the period 2001-2003; and Table 5 shows the direct employment and value added by agriculture and natural resources in comparison to all other industry groups in Florida.
Total industry output or sales of the agricultural and natural resource industries in Florida in 2003 was $50.8 billion (Bn), while total output impacts, including the indirect and induced multiplier effects, were $87.6 Bn (Table 1 ). Total direct employment was 388,916 jobs, and total employment impacts were 756,993 jobs. Total value added was $19.2 Bn, and total value added impacts were $41.1 Bn, which represents the net value created by the industry, measured as the difference between industry revenues and input purchases from other sectors. It also represents personal and business net income, and capital consumption. The labor (earned) income impact of agriculture and natural resources was $25.1 Bn. Indirect business taxes paid to local, state, and federal governments were $2.6 Bn. Total domestic and foreign export sales outside the state of Florida were $27.6 Bn.
As shown in Table 1 , the largest industry groups in terms of value added impacts were fruit and vegetable farming and processing ($7.5 Bn), environmental horticulture ($6.8 Bn), forestry and forest products ($6.5 Bn), agricultural inputs and support services ($6.5 Bn), other food product manufacturing ($5.5 Bn), tobacco farming and manufacturing ($3.0 Bn), sugarcane farming and refined sugar manufacturing ($1.8 Bn), mining ($1.6 Bn), and livestock and dairy farming and animal products manufacturing ($1.2 Bn). Some other smaller industry groups with value added impacts less than $1 billion were fishing and seafood products ($413 Mn), grain and oilseed farming and processing ($93 Mn), other crop farming, including cotton, nuts, and miscellaneous crops ($239 Mn), and wildlife hunting and trapping ($45 Mn).
As shown in Table 2 , some of the largest individual industry sectors, all with over one billion dollars in value added impacts were landscape services ($4.16 Bn), soft drink and ice manufacturing ($2.92 Bn), other tobacco product manufacturing ($2.79 Bn), greenhouse and nursery production ($2.66 Bn), phosphatic fertilizer manufacturing ($2.39 Bn), fruit and vegetable canning and drying ($2.26 Bn), agriculture and forestry support activities ($2.12 Bn), fruit farming ($1.99 Bn), vegetable and melon farming ($1.98 Bn), frozen food manufacturing ($1.27 Bn), sugar manufacturing ($1.26 Bn), paper and paperboard mills ($1.23 Bn), and forest nurseries and timber tracts ($1.05 Bn).
Regional value added impacts of agriculture and natural resource industries are shown in Table 3 for the nine economic regions of Florida, defined based on employee commuting patterns. A map of the counties included in these regions is shown in Figure 1 . Total value added impacts were largest in the Miami-Ft. Lauderdale region ($11.84 Bn), followed by Orlando ($9.37 Bn), Tampa-St.Petersburg-Clearwater ($6.71 Bn), Jacksonville ($5.70 Bn), Sarasota-Bradenton ($3.78 Bn), Gainesville ($1.19 Bn), Tallahassee ($1.21 Bn), Pensacola ($688 Mn) and Panama City ($381 Mn).
Figure 1. Economic regions of Florida. The total value added impacts of agricultural and natural resource industries in Florida grew from $33.77 Bn in 2001 to $41.12 Bn in 2003, adjusted for inflation to express in 2005 U.S. dollars (Table 4 ). This represented an overall growth rate of 20 percent, or 10 percent per annum. Rapid growth occurred for tobacco products (104%), other crop farming (33%), and forest products (27%); moderate growth occurred for environmental horticulture (17%), fruits and vegetables (17%), agricultural inputs and supporting services (16%), and other food product manufacturing (15%); and negative growth occurred for grains and oilseeds (-93%), wildlife hunting and trapping (-55%), and livestock, dairy and animal products (-13%). Note that these trends in value added impacts reflect changes in the structure of the Florida economy as well as changes in industry activity and commodity prices.
The relative importance of agricultural and natural resource industries in Florida can be gauged by its share of overall economic activity in the state, as shown in Table 5 . The Gross State Product (GSP), which is the sum of value added for all industries, was $578.9 Bn in 2003 (expressed in 2005 U.S. dollars), and the total employment in the state was 9,391,709 jobs. The direct value added by agriculture and natural resource industries ($19.2 Bn) comprised about 3.3 percent GSP, while direct employment (388,916 jobs) represented 4.1 percent of total state employment. However, the total value added impacts of agricultural and natural resource industries ($41.1 Bn) represented 7.1 percent GSP, and the total employment impact (756,993 jobs) accounted for 8.1 percent of total state employment. By comparison, the largest industry group in Florida was real estate and financial services, whose direct value added represented 14.2 percent GSP, followed by professional and technical services (12.7%), retail trade (7.8%), government (7.2%), and health care (7.1%).
References
Johnson, K., and J. Kort. 2004. Redefinition of the BEA Economic Areas. Survey of Current Business, pp. 68-75, Bureau of Economic Analysis, U.S. Department of Commerce, Washington, D.C. (November).MIG, Inc. 2005. Implan data for Florida counties (2003), Minnesota Implan Group, Inc., Stillwater, MN (December).
Tables
Table 1. Economic impacts of agricultural and natural resource industry groups in Florida, 2003.
Industry Group
Output
Output Impacts
Value Added
Value Added Impacts
Exports
Labor Income Impacts
Indirect Business Tax Impacts
Employment
Employment Impacts
(Mn$)*
(Mn$)*
(Mn$)*
(Mn$)*
(Mn$)*
(Mn$)*
(Mn$)*
(Jobs)
(Jobs)
Agricultural Inputs & Services (fertilizers/pesticides/veterinary/support activites/equipment manufacturing) 8,344
14,678
2,843
6,505
4,936
5,055
368
109,409
166,714
Forestry, Wood & Paper Product Manufacturing 7,949
14,537
2,508
6,503
5,150
4,230
386
30,741
105,111
Other Food Product Manufacturing 8,567
13,903
2,447
5,499
4,392
3,086
515
22,751
68,273
Fruit & Vegetable Farming & Processing 6,442
13,217
3,311
7,491
5,159
4,006
429
40,720
110,222
Environmental Horticulture (nursery/ greenhouse/landscape services 6,730
10,851
4,243
6,821
2,722
4,359
320
110,281
152,820
Tobacco Farming & Manufacturing 2,824
5,736
1,184
2,949
1,910
1,262
170
2,636
28,411
Livestock & Dairy Farming & Animal Products Manufacturing 4,073
4,787
751
1,158
682
661
79
23,730
31,118
Sugarcane Farming, Refined Sugar & Confections 2,243
4,572
549
1,839
1,360
1,091
145
23,942
52,778
Mining 2,442
3,490
920
1,566
784
860
114
10,311
20,590
Fishing & Seafood Products 782
1,062
241
413
197
299
19
11,102
13,905
Other Crop Farming 191
386
118
239
156
108
14
1,317
3,533
Grain & Oilseed Farming & Processing 92
206
21
93
94
55
8
342
1,455
Wildlife (hunting) 118
139
32
45
12
28
9
1,634
2,062
Total (all industries) 50,799
87,565
19,169
41,123
27,551
25,102
2,576
388,916
756,993
Source: Implan data for Florida, MIG, Inc., 2005). * Values expressed in 2005 U.S. dollars using GDP implicit price deflator, July 2003-July 2005 (U.S. Department of Commerce).
Table 2. Economic impacts of agricultural and natural resource industry sectors in Florida, 2003.
Industry Group
Industry Sector
Output
Output Impacts
Employment Impacts
Value Added Impacts
(Mn$)*
(Mn$)*
(Jobs)
(Mn$)*
Fruit & Vegetable Farming & Processing Frozen food manufacturing 1,165.5
2,588.0
18,276
1,268.9
Fuirt & vegetable canning & drying
2,110.6
4,663.6
28,498
2,258.8
Fruit farming
1,606.1
3,140.3
39,035
1,987.8
Vegetable & melon farming 1,559.7
2,825.1
25,392
1,975.9
Total
6,442.0
13,217.0
110,222
7,491.4
Environmental Horticulture (nursery/greenhouse/ landscape services) Greenhouse & nursery production 1,747.5
3,329.7
35,952
2,658.5
Landscape services (70% services to bldgs sector) 4,982.8
7,521.8
116,868
4,162.2
Total
6,730.3
10,851.4
152,820
6,820.8
Agricultural Inputs & Services (fertilizers/ pesticides/veterinary/support activities/ equipment manufacturing) Agriculture & forestry support activities 1,505.9
3,035.3
95,204
2,118.2
Farm machinery & equipment manufacturing 153.0
189.0
846
58.3
Fertilizer, mixing only, manufacturing 285.5
285.5
790
67.2
Food product machinery manufacturing 66.0
84.9
580
33.8
Lawn & garden equipment manufacturing 15.0
16.7
54
3.3
New farm housing units & additions & alterations 1,026.7
1,026.7
4,149
334.6
Nitrogenous fertilizer manufacturing 595.4
1,077.4
4,492
356/8
Paper industry machinery manufacturing 19.7
26.9
172
10.0
Pesticide & other agricultural chemical manufacturing 421.3
859.9
4,359
388.9
Phosphatic fertilizer manufacturing 3,088.5
6,587.8
34,594
2,393.4
Sawmill & woodworking machinery 5.0
6.1
44
2.3
Veterinary services 1,162.4
1,481.5
21,430
738.6
Total
8,344.4
14,677.8
166,714
6,505.4
Forestry, Wood, & Paper Product Manufacturing All other converted paper product manufacturing 43.2
101.2
730
50.3
Coated & laminated paper & packaging materials 142.3
319.8
2,081
148.6
Coated & uncoated paper bag manufacturing 132.9
264.8
1,718
112.6
Cut stock, resawing lumber, & planing 18.9
29.3
238
10.5
Engineered wood member & truss manufacturing 930.1
1,443.8
10,771
679.3
Forest nurseries, forest products & timber 578.4
1,856.6
27,022
1,046.6
Logging 605.8
678.7
3,695
299.8
Miscellaneous wood product manufacturing 55.3
61.5
540
24.6
Other millwork, including flooring 288.1
299.7
1,878
83.3
Paper & paperboard mills 1,058.3
2,604.3
15,911
1,228.3
Paperboard container manufacturing 1,136.1
2,023.3
12,379
815.1
Pulp mills 723.6
1,882.6
11,573
818.0
Reconstituted wood product manufacturing 3.0
3.8
17
1.6
Sanitary paper product manufacturing 738.7
1,378.6
7,630
667.9
Sawmills 465.4
518.5
2,444
147.1
Surface-coated paperboard manufacturing 8.3
9.1
35
2.3
Veneer & plywood manufacturing 193.5
218.7
1,356
71.7
Wood container & pallet manufacturing 153.7
158.1
1,475
64.3
Wood preservation 156.3
159.6
635
35.0
Wood windows & door manufacturing 516.9
524.8
2,982
196.5
Total
7,948.7
14,536.7
105,111
6,503.3
Other Food Product Manufacturing All other food manufacturing 121.6
141.1
652
32.2
Bread & bakery product, except frozen, manufacturing 1,166.1
1,180.0
9,786
535.4
Breakfast cereal manufacturing 0.0
0.0
0
0.0
Breweries 787.3
1,615.2
8.943
880.4
Coffee & tea manufacturing 270.3
298.4
800
63.7
Cookie & cracker manufacturing 290.3
290.3
914
89.2
Distilleries 239.2
524.3
3,404
341.5
Dog & cat food manufacturing 29.5
31.2
47
2.6
Dry pasta manufacturing 11.9
12.4
49
3.2
Fats & oils refining & blending 41.8
57.9
179
15.0
Flavoring syrup & concentrate manufacturing 631.3
647.8
479
121.7
Frozen cakes & other pastries manufacturing 6.8
7.4
65
2.1
Mayonnaise, dressing, & sauce manufacturing 156.6
168.6
508
51.1
Mixes & dough made from purchased flour 0.6
0.6
2
0.1
Other animal food manufacturing 304.1
538.1
2,523
167.3
Other snack food manufacturing 414.8
422.1
877
131.0
Roasted uts & peanut butter manufacturing 4.6
5.9
23
1.9
Soft drink & ice manufacturing 3,751.3
7,568.7
37,696
2,915.6
Spice & extract manufacturing 284.9
293.3
703
103.7
Tortilla manufacturing 0.1
0.1
1
0.0
Wineries 54.5
100.1
622
41.4
Total
8,567.5
13,903.3
68,273
5,499.0
Tobacco Farming & Manufacturing Cigarette manufacturing 236.1
248.8
229
119.8
Other tobacco product manufacturing 2,545.0
5,408.1
27,306
2,793.2
Tobacco farming 20.7
43.7
701
28.6
Tobacco stemming & redrying 22.2
35.6
177
8.0
Total
2,823.9
5,736.1
28,411
2,949.5
Sugarcane Farming, Refined Sugar & Confections Confectionery manufacturing from cacao beans 10.1
12.4
44
3.7
Confectionery manufacturing from purchased chocolate 114.8
159.8
878
51.4
Nonchocolate confectionery manufacturing 138.8
198.9
1,120
83.9
Sugar manufacturing 1,390.2
3,302.4
26,645
1,263.6
Sugarcane & sugar beet farming 588.9
898.7
24,091
436.4
Total
2,242.8
4,572.2
52,778
1,839.0
Mining Coal mining 9.8
14.6
78
7.8
Copper, nickel, lead, & zinc mining 0.4
0..5
4
0.3
Drilling oil & gas wells 22.2
47.2
479
28.4
Gold, silver, & other metal ore mining 88.9
168.3
1,117
113.5
Iron ore mining 0.4
1.0
7
0.6
Oil & gas extraction 1,456.0
1,485.4
5,193
276.1
Other nonmetallic mineral mining 449.2
780.8
5,513
498.3
Sand, gravel, clay, & refractory mining 145.7
373.9
3,198
247.8
Stone mining & quarrying 253.1
580.9
4,597
367.9
Support activities for oil & gas operations 11.3
23.3
288
17.2
Support activities for other mining 5.4
13.8
115
8.6
Total
2,442.3
3,489.8
20,590
1,566.5
Livestock & Dairy Farming & Animal Products Manufacturing Animal production, except cattle & poultry 267.3
318.5
8,176
77.2
Animal, except poultry, slaughtering 415.7
480.3
1,863
81.0
Cattle ranching & farming 715.5
1,044.9
10,871
266.0
Cheese manufacturing 69.8
70.3
110
5.6
Creamery butter manufacturing 2.7
2.8
6
0.2
Dry, condensed, & evaporated dairy products 93.8
105.1
232
27.5
Fluid milk manufacturing 694.1
696.1
1,229
88.4
Ice cream & frozen dessert manufacturing 275.3
277.7
677
62.4
Meat processed from carcasses 550.4
567.8
1,691
78.6
Poultry & egg production 376.1
551.7
2,710
284.0
Poultry processing 527.6
552.1
3,104
147.1
Rendering & meat by-product processing 84.4
119.8
448
40.3
Total
4,072.9
4,787.1
31,118
1,158.4
Fishing & Seafood Products Fishing 142.2
320.3
10,263
209.6
Seafood product preparation & packaging 639.6
742.1
3,642
203.6
Total
781.8
1,062.4
13,905
413.2
Other Crop Farming All other crop farming 147.4
287.3
2,499
180.2
Cotton farming 42.2
95.4
998
56.7
Tree nut farming 1.6
3.3
36
2.1
Total
191.2
386.0
3,533
239.0
Grain & Oilseed Farming & Processing Flour milling 62.2
116.5
584
46.2
Grain farming 9.1
18.9
304
10.7
Oilseed farming 2.3
34.7
375
21.4
Rice milling 18.8
36.3
192
14.4
Total
92.5
206.4
1,455
92.8
Wildlife (hunting) Total
118.2
138.9
2,062
45.1
Total (all industries) 50,798.5
87,565.1
756,993
41,123.3
Table 3. Value added impacts of agricultural and natural resource industry groups in economic regions of Florida, 2003.
Industry Group Miami-Ft. Lauderdale
Orlando
Sarasota-Bradenton
Tampa-St. Petersburg-Clearwater
Jacksonville
Gainesville
Tallahassee
Panama City
Pensacola
Total All Regions
(Mn$)*
(Mn$)*
(Mn$)*
(Mn$)*
(Mn$)*
(Mn$)*
(Mn$)*
(Mn$)*
(Mn$)*
(Mn$)*
Agricultural Inputs & Support Services 1,316.6
2,530.7
491.7
992.8
249.5
56.4
297.6
18.7
48.4
6,002.3
Environmental Horticulture 2,504.2
1,773.5
723.0
804.1
423.0
109.8
101.5
43.8
70.4
6,553.4
Fishing & Seafood Products 131.6
66.2
22.9
218.7
19.8
2.6
17.3
10.1
8.2
497.4
Forestry, Wood, & Paper Products 1,226.8
1,117.0
139.9
504.9
1,298.4
400.4
529.8
194.2
366.0
5,877.6
Fruit & Vegetable Products 2,174.2
1,794.7
2,084.3
775.8
150.6
102.4
27.2
14.7
5.3
7,129.4
Grain & Oilseed Products 42.1
4.7
1.2
21.6
1.8
2.2
6.5
3.7
2.8
86.7
Livestock, Dairy, & Animal Products 209.0
204.3
48.1
307.5
76.9
404.5
70.9
40.6
50.3
1,412.0
Mining 265.7
514.2
157.6
970.0
108.0
27.4
26.1
2.9
79.2
2,151.0
Other Crop Farming 14.5
33.4
3.6
10.7
1.5
39.4
6.0
47.3
45.7
202.2
Other Food Product Manufacturing 1,569.7
1,267.3
84.0
1,129.9
1,723.0
11.8
15.5
4.1
11.0
5,816.3
Sugarcane & Refined Sugar 1,828.4
59.5
16.5
72.2
13.3
1.0
0.0
0.3
0.4
1,991.5
Tobacco Products 545.8
0.0
3.5
886.6
1,629.8
17.9
7.2
0.0
0.0
3,091.0
Wildlife (hunting) 15.2
6.3
1.7
14.9
2.3
12.0
6.9
0.0
0.0
59.3
Total All Industries 11,844
9,372
3,778
6,710
5,698
1,188
1,213
381
688
40,870
Source: Implan data for Florida (MIG, Inc. 2005). * Values expressed in 2005 U.S. dollars using GDP implicit price deflator, July 2003-July 2005 (U.S. Department of Commerce).
Table 4. Trend in value added impacts of agricultural and natural resource industry groups in Florida, 2001-2003.
Industry Group 2001
2002
2003
Percent Change 2001-03
(Mn$)*
(Mn$)*
(Mn$)*
(%)
Agricultural Inputs & Services (fertilizers/pesticides/ veterinary/support activities/equipment manufacturing 5,559
5,631
6,503
16%
Environmental Horticulture (nursery/greenhouse/ landscape services) 5,763
6,391
6,821
17%
Fishing & Seafood Products 394
436
413
5%
Forestry, Wood, & Paper Product Manufacturing 4,930
5,847
6,503
27%
Fruit & Vegetable Farming & Processing 6,294
7,634
7,491
17%
Grain & Oilseed Farming & Processing 221
103
93
-93%
Livestock & Dairy Farming & Animal Products Manufacturing 1,315
1,110
1,158
-13%
Mining 1,445
1,533
1,566
8%
Other Crop Farming 173
190
239
33%
Other Food Product Manufacturing 4,752
4,850
5,499
15%
Sugarcane Farming, Refined Sugar & Confections 1,678
1,688
1,839
9%
Tobacco Farming & Manufacturing 1,172
995
2,949
104%
Wildlife (hunting) 78
54
45
-55%
Grand Total 33,774
36,462
41,120
20%
Source: Implan data for Florida (MIG, Inc., 2005). * Values expressed in 2005 U.S. dollars using GDP implict price deflator (U.S. Department of Commerce).
Table 5. Employment and value added of all industry groups in Florida, 2003.
Industry Group (NAICS Basis) Direct Employment
Direct Value Added
Jobs
Share (%)
Mn$*
Share (%)
Real Estate & Financial Services 804,949
8.6%
82,459
14.2%
Professional & Technical Services
1,492,494
15.9%
73,327
12.7%
Retail Trade 990,428
10.5%
45,251
7.8%
Government 609,769
6.5%
41,781
7.2%
Health Care 749,381
8.0%
40,868
7.1%
Private Households 143,454
1.5%
39,196
6.8%
Wholesale Trade 355,109
3.8%
36,490
6.3%
Construction 701,544
7.5%
35,273
6.1%
Travel, Food, & Entertainment Services 950,313
10.1%
31,565
5.5%
Manufacturing 317,640
3.4%
26,681
4.6%
Information & Communications 256,251
2.7%
25,131
4.3%
Education 593,548
6.3%
25,064
4.3%
Consumer Services 459,300
4.9%
20,616
3.6%
Agriculture, Natural Resources, Related Manufacturing & Services**
388,916
4.1%
19,169
3.3%
Transportation 300,857
3.2%
18,481
3.2%
Utilities 28,330
0.3%
10,463
1.8%
Social Services & Organizations 249,426
2.7%
7,230
1.2%
Miscellaneous Residual Accounts 0
0.0%
-135
0.0%
Grand Total 9,391,709
100.0%
578,910
100.0%
Source: Implan data for Florida (MIG, Inc., 2005). * Values expressed in 2005 U.S. dollars using GDP implict price deflator (U.S. Department of Commerce).
** Agriculture, natural, resources, related manufacturing & services amounts netted-out of other industry groups.
Footnotes
1. This is EDIS document FE627, a publication of the Food and Resource Economics Department, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. Published February 2006. Please visit the EDIS website at http://edis.ifas.ufl.edu.2. Alan W. Hodges, Associate-In, and W. David Mulkey, Professor, Food and Resource Economics Department, 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
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