Economic Contributions of Florida Beef and Dairy Cattle and Allied - - PowerPoint PPT Presentation

Economic Contributions of Florida Beef and Dairy Cattle and Allied Industries

Sponsored by Florida Cattlemen’s Association and Florida Dairy Producers Alan W. Hodges and Christa D. Court University of Florida-IFAS, Food & Resource Economics Department

Project Scope of Work

• Compile secondary information on Florida beef and dairy

cattle

• Conduct internet survey of Florida cattle producers and

allied industries

• Estimate total regional economic contributions at state and

county levels, including multiplier effects, using IMPLAN input-output model: employment (jobs), output (revenue), value added, labor income, property income, taxes

• Summarize literature on non-market values of

environmental services provided by Florida cattle ranches

• Prepare technical project report and executive summary for

public via electronic media

• Present study findings to the industry
• Consult with sponsors on public relations messaging

Data Item 2014 2015 2016 2017 2018 2019 Beef Cow Inventory (head, Jan. 1) 907,000 906,000 905,000 908,000 886,000 914,000 Milk Cow Inventory (head, Jan. 1) 123,000 124,000 125,000 122,000 124,000 116,000 Calf Crop (head) 820,000 800,000 810,000 790,000 820,000 Cattle and Calves Production Value (million $) 798.4 786.3 510.6 501.8 Milk Production (million pounds) 2,508 2,582 2,495 2,496 2,379 Milk Price Received ($/cwt) 28.2 21.3 19.6 21.5 19.9* Milk Production Value (million $) 707.3 550.0 490.6 536.6 473.4*

Florida Beef and Dairy Cattle Inventory and Production

Source: USDA-NASS *Estimated value from monthly averages

Florida Agricultural Land Use

Source: USDA-NASS 1 2 3 4 5 6 7 1997 2002 2007 2012 Million Acres

All pastured land Pasture (excl. grazed cropland, woodland) Cropland Farm woodland

Source: USDA-NASS

Florida’s Top Cattle Counties

50 100 150 200 250 300 350 400 450 500 550

Osceola Highlands Okeechobee Polk Glades De Soto Hendry Hardee Marion Charlotte Sumter Hillsborough Pasco Brevard Orange

• St. Lucie

Alachua Indian River Manatee Martin Lake Levy

Thousand Acres (2012) Pasture (excl. pastured woodland and cropland) Woodland pastured Cropland pastured 25,000 50,000 75,000 100,000 125,000 OKEECHOBEE HIGHLANDS POLK OSCEOLA HARDEE DE SOTO SUWANNEE MARION ALACHUA JACKSON HILLSBOROUGH COLUMBIA PASCO MANATEE GILCHRIST LAFAYETTE CHARLOTTE BREVARD LAKE INDIAN RIVER ORANGE Number Cows, Jan. 2018 Beef Dairy

Industry Sector Employment (Jobs) Output (M$) Employee Compen- sation (M$) Other Property Type Income (M$) Total Value Added (M$) Domestic & International Exports (M$) Beef cattle ranching and farming 7,061 549 11 36 128 244 Dairy cattle and milk production 1,530 491 23 33 152 68 Fluid milk manufacturing 1,450 1,108 90 55 147 63 Creamery butter manufacturing 15 22 1 2 1 Cheese manufacturing 67 64 5 2 7 62 Dry, condensed, and evaporated dairy product manufacturing 38 51 1 1 2 31 Ice cream and frozen dessert manufacturing 902 325 24 22 47 157 Animal slaughtering (except poultry) 316 213 13 10 24 93 Meat processed from carcasses 1,130 574 50 17 70 141 Rendering and meat byproduct processing 326 159 19 2 21 104 Total All Sectors 12,834 3,557 236 180 600 964

Values in millions dollars. Source: Implan model for Florida (Implan Group, LLC)

Florida Beef and Dairy Cattle Farming and Processing Industry Direct Employment, Output, Value Added and Exports in 2016

500 1,000 1,500 2,000 2,500 3,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Million Dollars, 2016 Beef cattle ranching and farming Dairy cattle and milk production Animal slaughtering, rendering, and processing Dairy product manufacturing Source: Implan Group, LLC

Output (Revenue) Trend in Florida Beef and Dairy Cattle Farming and Processing Industries, 2007-16

Principal Business Type Number Respondents Annual Sales ($) Fulltime Employees Part-time & Seasonal Employees Capital Improvements Last 3 Years ($) Beef cattle ranch or dairy farm 285 271,307,481 1,175 583 39,420,435 Beef or dairy processor/manufacturer 2 3,800,000 38 Agricultural consultant 5 3,914,866 14 8 27,000 Animal transportation services 3 264,000 1 5 135,000 Cattle or animal product marketing broker/dealer 3 1,134,000 6 8 286,500 Farm supply or equipment wholesaler or retailer 5 7,557,000 77 Veterinary services 2 1,030,000 17 6 75,000 Other type of business 20 18,275,500 67 36 1,139,149 Mixed businesses 28 46,473,000 51 57 717,100 Don't know 3 5,000 2 Not Available 69 30,000 2 Total 425 353,790,847 1,450 703 41,800,184

Survey Results by Principal Business Type

Online survey to FCA mailing list, June 17 to Sep. 3, 2018; 425 valid respondents

Principal Farm Enterprise Number Respondents Annual Sales ($) Employees (Full/Part-time) Farm Area (Acres) Cattle Herd (Head) Beef cow-calf production 199 35,816,481 583 266,814 76,284 Dairy milk production 15 210,110,000 793 38,657 70,575 Seedstock production or breeding services 8 759,000 26 3,236 620 Beef stocker production 5 18,500 6 10,180 10,081 Beef feedlot or veal production 2 1,930,000 15 10,012 3,530 Other crop production 4 4,150,000 44 23,925 7,205 Hay or silage production 6 615,000 8 2,575 355 Other animal production 2 75,000 8 72 20 Agritourism/agritainment 1 1 750 375 Other activity 5 2,926,500 55 12,175 11,705 Multiple enterprises 76 69,285,500 399 140,507 66,450 Total 323 325,685,981 1,938 508,903 247,200

Survey Results for Farm-Ranch Enterprises

50 100 150 200 250 300 Beef cattle ranch or dairy farm Cattle or animal product marketing broker or… Beef or dairy processor/manufacturer Farm supply or equipment wholesaler or retailer Animal transportation services Veterinary services Agricultural consultant Other type of business Million Dollars

Survey Results: Business Type Sales

50 100 150 200 250 Dairy milk production Beef cow-calf production Beef stocker production Beef or dairy seedstock production… Other crop production Hay or silage production Timber harvesting Beef feedlot or veal production Natural product harvesting Agritourism/agritainment Other activity Other animal production Million Dollars

Survey Results: Farm Enterprise Sales

25 50 75 100 125 Processor Auction market Contract buyer Other local market Online Other non-local market Million Dollars

Survey Results: Farm Market Channel Sales

0% 10% 20% 30% 40% 50% 60% 70% Rotational grazing Invasive species control Controlled release fertilizers for pastures Winter grazing or wildlife forage plots Prescribed burning Fencing to exclude cattle from waterways Manure landspreading for crop fertilization Market branded product (e.g. Angus beef, Fresh from Florida, Water retention impoundments Natural production system (no synthetic pesticides or fertil Heritage breed conservation (e.g. Cracker cattle) Market to local restaurants or Community Supported Agricultu Certified organic production Maintain natural areas for wildlife habitat Anaerobic digester treatment of manure Percent of Farm-Ranch Respondents

Survey Results: Farm Production, Marketing, and Environmental Practices

Selected Comments by Survey Respondents Regarding Contributions to Their Community

Every business in our county benefits from the money we make from our

• cows. The feed store makes a good

amount of it. ... our operation provides a clean watershed, wildlife habitat, buffer from urbanization, pay taxes, do not require a lot of services from local government, and contribute positively through involvement in our local community. I have encouraged and mentored many small/new cattlemen/women who want a few cows, some even selling their first property to purchase larger property and more cattle. I spend hours answering questions, making farm visits, pulling first calves. My ranch provides homes for many birds, small animals, trees. I practice best management practices and are enrolled in BMP. I believe it is important to keep the ranches , the

• pen land is good for the

environment and aquifer... Farmers and ranchers are the best stewards

• f the land and of the animals both

domestic and wild. I feel that is a great contribution to our community. Payroll was $8,240,000 to local tri-county residents; we deal with a local feed company, vet/med company, tractor dealership, etc. The majority of

• ur revenues stay local.

Provide housing for most employees. Donate time and money to local youth activities such as 4-H and FFA. Rely heavily on local businesses for most purchases and service. Provides wildlife protection, water absorption, and income for small businesses. Provides wildlife protection, water absorption, and income for small businesses. ...The true value to our community and state is what our operation does for communities and state for open space, water, wildlife habitat. We donate to 40-50 different charity

• rganizations annually.

... by keeping this farm land and following BMPs we feel our impact is

• ne that is beyond measure.

Selected Comments by Survey Respondents Regarding Other Topics

…am trying to use the advancements in technology as a tool to advance my herd

• f registered black Angus
• cattle. Parentage, defect, and

genomic testing on animals that were produced by embryo transfer have given me a 10 year jumpstart on the genetics that I typically come across in the Florida market. Beef prices need to be raised. It is getting hard to run a small ranch not making any money. Cattle market prices have not kept up with cost of living! A small rancher can not stay in business at this rate. I am a third generation rancher don't think I can stay in ranching if things don't change! Dairy handles a lot of money that cycles thru local businesses from employee pay checks and other goods and services purchased. Unfortunately dairy farmers don't get to keep much as margins are very tight. A small rise in milk price would allow for more economic growth as farmers reinvest in their business. Keeping cattle reduces taxes because of Greenbelt laws. But I still pay taxes on the land. ...We are likely to remove orange trees and replace with beef cattle pasture in the next 3 to 5 years.

Summary of Economic Contributions of Beef and Dairy Cattle Farming and Allied Industries in Florida in 2017

Industry-Activity Employment (Jobs) Labor Income (Mill. $) Value Added (Mill. $) Output (Mill. $) Percent of Employment Beef cattle farms 14,720 326 509 1,362 12.5% Dairy farms 6,288 332 503 1,164 5.3% Support activities for animal production, vet services, animal feed manuf. 5,804 252 388 891 4.9% Dairy product manufacturing 12,860 670 1,102 3,387 10.9% Meat processing 14,668 627 950 3,115 12.4% Livestock and meat/dairy product wholesalers 11,049 648 1,213 1,970 9.3% Retail sales of beef and dairy products at grocery stores and meat markets 51,577 1,723 2,891 4,742 43.6% Farm capital improvements (avg. last 3 years) 1,225 60 97 168 1.0% Total All Industries-Activities 118,191 4,639 7,653 16,798 100.0% Subtotal Direct Multiplier Effects 58,221 1,996 3,085 8,179 49.3% Subtotal Indirect Multiplier Effects 32,093 1,426 2,331 4,719 27.2% Subtotal Induced Multiplier Effects 27,876 1,217 2,238 3,901 23.6% Subtotal farming, support activities and manufacturing 54,340 2,208 3,452 9,918 46.0% Subtotal wholesale and retail distribution 62,625 2,371 4,104 6,712 53.0%

Employment Contributions of Beef and Dairy Cattle Production and Allied Industries in Florida in 2017

10 20 30 40 50 60 Beef cattle farms Dairy farms Support activities for animal production Dairy product manufacturing Meat processing Livestock, meat, dairy wholesalers Retail sales of beef and dairy products Farm capital improvements (avg 3 years) 1000 Fulltime, Part-time Jobs Direct Indirect Induced

Employment Contributions of Beef and Dairy Cattle Production and Processing Industries in the Top Florida Counties in 2017

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Miami-Dade Polk Palm Beach Hillsborough Okeechobee Duval Broward Sumter Orange Hardee Highlands Columbia Hernando Marion Suwannee Manatee Volusia Gilchrist Hendry Putnam Fulltime & Part-time Jobs Beef cattle ranching Dairy farms Support activities Dairy manufacturing Meat processing

Map of Florida County Dependence on the Cattle Industry in Terms

• f Employment Contributions as Share of Total County Employment

< 1% 1.1% – 5% 5.1% – 10% 10.1% – 15% > 15%

Alan W. Hodges awhodges@ufl.edu (352) 294-7674 Christa D. Court ccourt@ufl.edu (352) 294-7675

• Connect. Explore. Engage.

Full report and fact sheet available at https://fred.ifas.ufl.edu/economicimpactanalysis/