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Publication #FE954

Economic Contributions of Agriculture, Natural Resources, and Related Food Industries in Florida in 20121

Alan W. Hodges, Mohammad Rahmani, and Thomas J. Stevens2

Executive Summary

Agriculture, natural resources, and related food industries remain a significant force in the economy of Florida, and it is important to recognize their economic contributions for informed public policy. The economic contributions of these industries were re-evaluated for calendar year 2012 to update previous reports and to provide current information on economic trends in the wake of the historic global recession of 2007–2009.

This analysis was conducted using the Implan regional economic modeling system and associated state and county databases (IMPLAN Group LLC) to estimate economic multipliers that capture the additional economic activity generated by re-spending of income in the local economy arising from new final demand. The set of industry sectors included in this analysis was selected to represent a broad array of activities for agricultural and natural resource commodity production, distribution, and supporting services. The extent of the total effects of a particular activity or event in a region (state, county) is measured by several yardsticks, including employment, output, value added, export, labor income, other property income, and indirect business taxes. Value added is a preferred measure of economic activity because it is comparable to Gross Domestic Product. A glossary of Economic Impact Terms that follows this summary will orient the reader to technical terms used in this report.

Economic contribution results for Florida’s agriculture, natural resources, and related food industries for 2012 are summarized in Table ES1:

  • Industry output or sales revenues of $141.79 billion

  • Total employment impacts (including indirect/induced multiplier effects arising from foreign and domestic exports of $65.85 billion) of 2.1 million full-time and part-time jobs representing 20.8 percent of all jobs in the state

  • Total value added impacts (including multiplier effects) of $119.98 billion, representing 14.9 percent of Gross State Product (GDP)

  • Total labor income impacts of $75.92 billion which include employee wages and fringe benefits, business proprietor income, and total property income impacts of $30.77 billion

  • Impacts/contributions from taxes on production and imports paid to local, state, and federal governments totaled $13.29 billion

Across the various groups of agriculture, natural resource, and related food industry sectors, total employment and value added impacts were largest for the Food and Kindred Products Distribution industry group (1.28 million jobs; $67.26 billion), which includes food service establishments (restaurants and bars) and retail food stores. The employment and value added contributions of other industry sectors/groups in descending order include Agricultural Inputs and Services (314,140 jobs; $14.95 billion), Crop, Livestock, Forestry, and Fisheries Production (226,884 jobs; $13.31 billion), Food and Kindred Product Manufacturing (129,332 jobs; $12.08 billion), Forest Product Manufacturing (70,681 jobs; $6.62 billion), Mining (60,256 jobs; $4.18 billion), and Nature-Based Recreation (17,323 jobs; $1.58 billion). Excluding the Food and Kindred Products Distribution industry group, total value added impacts represented 6.56 percent of Gross State Product, and employment was 8.13 percent of total state employment.

Information on economic contributions was also regrouped and evaluated for seven agricultural commodity groups that have identifiable market-chain linkages between production and processing/manufacturing sectors. The total employment and value added contributions were highest for the Environmental Horticulture group (227,222 jobs; $10.21 billion), followed by Forestry and Forest Products (84,302 jobs; $7.64 billion), Fruit and Vegetable Farming and Processing (83,024 jobs; $7.10 billion), Sugarcane Farming and Refined Sugar Manufacturing (36,733 jobs; $1.50 billion), Livestock and Dairy Farming and Animal Products Manufacturing (25,310 jobs; $1.40 billion), Fishing and Seafood Products (12,178 jobs; $526 million), and Grain and Oilseed Farming and Processing (2,986 jobs; $278 million).

Geographically, the size and composition of agriculture, natural resources, and related food industries vary dramatically across the state of Florida due to differences in climate, natural resource endowments, and population and settlement patterns. The largest economic contributions occurred in the major metro areas of Miami-Ft. Lauderdale, Orlando, Tampa-St. Petersburg, Sarasota-Bradenton, and Jacksonville, where there are large demands for food and kindred products, and a large workforce available for the industry (Table ES1). The eight largest counties in terms of total employment and value added impacts were Miami-Dade (252,806 jobs; $15.80 billion), Broward (177,251 jobs; $9.99 billion), Orange (166,312 jobs; $9.81 billion), Palm Beach (165,152 jobs; $9.85 billion), Hillsborough; (154,912 jobs; $10.32 billion), Duval (111,564 jobs; $7.76 billion, Polk (97,461 jobs; $6.76 billion), and Pinellas (94,056 jobs; $4.74 billion). However, the economic contributions of agriculture and related industries are also relatively more important in many rural areas, where these industries represent a higher share of total economic activity. Additional detailed information on economic contributions in individual Florida counties is available in the Appendix.

Direct employment in the agriculture, natural resources, and related food industries in Florida grew from 1.281 million jobs in 2001 to a peak of 1.403 million jobs in 2008, before declining to 1.331 million jobs in 2009 during the recession. In 2012, direct employment increased again to 1.46 million jobs, which was 14.4 percent higher than 2001, representing average annual growth of 0.9 percent, and total employment impacts increased to 2.10 million jobs, reflecting a dramatic increase in exports of Florida products to domestic and world markets. Average annual growth in value added impacts during 2001–2012 was highest for Mining (8.4%), followed by Agricultural Inputs and Services (5.3%), and Food and Kindred Products Distribution (4.4%). Growth rates in agriculture and related industries were higher than in many other Florida industries during the recent period.

Tables

Table ES1. 

Summary of economic contributions of agriculture, natural resources, and related food industries in Florida in 2012, by major industry groups and Florida regions

Industry Group

Direct Employment (Jobs)

Direct Output (Revenue) (M$)

Foreign and Domestic Exports (M$)

Employment Impacts (Jobs)

Value Added Impacts (M$)

Labor Income Impacts (M$)

Other Property Income Impacts (M$)

Tax on Production and Imports Impacts (M$)

Crop, Livestock, Forestry & Fisheries Production

130,825

11,217

7,253

226,884

13,313

8,649

4,015

649

Agricultural Inputs & Services

210,620

18,566

10,619

314,140

14,947

10,496

3,475

976

Food & Kindred Products Manufacturing

40,604

23,972

10,643

129,332

12,077

6,703

4,257

1,116

Forest Products Manufacturing

18,326

7,594

5,190

70,681

6,624

3,797

2,335

492

Food & Kindred Products Distribution

1,023,149

74,364

17,471

1,281,250

67,262

43,254

14,414

9,594

Mining

25,185

4,669

2,850

60,256

4,176

2,244

1,618

314

Nature-based Recreation

7,717

1,011

666

17,323

1,582

777

652

153

Florida Region

               

Miami-Fort Lauderdale

489,630

45,346

18,947

702,990

41,198

26,578

10,153

4,598

Orlando

354,367

35,020

17,052

511,623

28,540

18,029

7,349

3,151

Tampa-St. Petersburg

199,905

20,351

9,249

286,605

16,665

10,776

3,980

1,866

Sarasota-Bradenton

157,269

12,526

5,458

219,235

11,471

7,504

2,774

1,201

Jacksonville

108,164

13,730

7,443

165,993

11,118

6,480

3,310

1,293

Gainesville

53,585

4,194

1,807

72,496

3,630

2,177

1,025

422

Tallahassee

39,836

4,236

2,405

55,046

2,690

1,582

825

266

Panama City

33,974

4,085

2,319

49,012

2,667

1,659

718

286

Pensacola

24,329

2,301

1,165

36,866

2,001

1,137

633

212

Total All Industries,

All Regions

1,456,426

141,393

65,846

2,099,866

119,980

75,920

30,766

13,294

Footnotes

1.

This is EDIS document FE954, a publication of the Food and Resource Economics Department, UF/IFAS Extension. Published July 2014. Please visit the EDIS website at http://edis.ifas.ufl.edu/.

2.

Alan W. Hodges, extension scientist; Mohammad Rahmani, economic analyst; and Thomas J. Stevens, post-doctoral research associate, Food and Resource Economics Department, UF/IFAS Extension, Gainesville, FL 32611.


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 UF/IFAS Extension publications, contact your county's UF/IFAS Extension office.

U.S. Department of Agriculture, UF/IFAS Extension Service, University of Florida, IFAS, Florida A & M University Cooperative Extension Program, and Boards of County Commissioners Cooperating. Nick T. Place, dean for UF/IFAS Extension.