economic contributions of florida beef and dairy cattle ......beef cattle ranch or dairy farm 285...
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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 IMPLANinput-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 $) 707.3 550.0 490.6 536.6 473.4*
Florida Beef and Dairy Cattle Inventory and Production
Source: USDA-NASS*Estimated value from monthly averages
Florida Agricultural Land Use
Source: USDA-NASS
0
1
2
3
4
5
6
7
1997 2002 2007 2012
Mill
ion
Acr
es
All pasturedland
Pasture (excl.grazed cropland,woodland)
Cropland
Farm woodland
Source: USDA-NASS
Florida’s Top Cattle Counties
0 50 100 150 200 250 300 350 400 450 500 550
Osceola
Highlands
Okeechobee
Polk
Glades
De Soto
Hendry
Hardee
Marion
Charlotte
Sumter
Hillsborough
Pasco
Brevard
Orange
St. Lucie
Alachua
Indian River
Manatee
Martin
Lake
Levy
Thousand Acres (2012)
Pasture (excl. pasturedwoodland and cropland)
Woodland pastured
Cropland pastured
0 25,000 50,000 75,000 100,000 125,000
OKEECHOBEEHIGHLANDS
POLKOSCEOLA
HARDEEDE SOTO
SUWANNEEMARION
ALACHUAJACKSON
HILLSBOROUGHCOLUMBIA
PASCOMANATEEGILCHRIST
LAFAYETTECHARLOTTE
BREVARDLAKE
INDIAN RIVERORANGE
Number Cows, Jan. 2018
Beef
Dairy
Industry SectorEmployment
(Jobs)Output
(M$)
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 0 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
0
500
1,000
1,500
2,000
2,500
3,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mill
ion
Do
llars
, 20
16
Beef cattle ranching andfarming
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 TypeNumber
RespondentsAnnual 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 0
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 0 0
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 0
Not Available 69 30,000 2 0 0
Total 425 353,790,847 1,450 703 41,800,184
Survey Results by Principal Business TypeOnline survey to FCA mailing list, June 17 to Sep. 3, 2018; 425 valid respondents
Principal Farm EnterpriseNumber
RespondentsAnnual 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 0 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
0 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
0 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
0 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 open land is good for the environment and aquifer... Farmers and ranchers are the best stewards of 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 our 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 organizations annually.
... by keeping this farm land and following BMPs we feel our impact is one 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 of 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-ActivityEmployment
(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 markets51,577 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
manufacturing54,340 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
0 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
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
Miami-DadePolk
Palm BeachHillsboroughOkeechobee
DuvalBroward
SumterOrangeHardee
HighlandsColumbiaHernando
MarionSuwannee
ManateeVolusia
GilchristHendryPutnam
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 of Employment Contributions as Share of Total County Employment
< 1%
1.1% – 5%
5.1% – 10%
10.1% – 15%
> 15%
Alan W. [email protected]
(352) 294-7674
Christa D. [email protected](352) 294-7675
Connect. Explore. Engage.
Full report and fact sheet available at https://fred.ifas.ufl.edu/economicimpactanalysis/