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The Emerging Role of Agriculture in Economic Development Rex Ricketts, Director University of Missouri Extension Commercial Agriculture Program Commercial.

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Presentation on theme: "The Emerging Role of Agriculture in Economic Development Rex Ricketts, Director University of Missouri Extension Commercial Agriculture Program Commercial."— Presentation transcript:

1 The Emerging Role of Agriculture in Economic Development Rex Ricketts, Director University of Missouri Extension Commercial Agriculture Program Commercial Agriculture Program

2 Overview Importance of Missouri's Agriculture Historical Changes in Agriculture  Tractor  Electricity  Trailer Truck Economic Impact of Animal Production

3 Missouri Agriculture 2006 $5.62 billion in farm receipts  55% livestock  45% crops Missouri ranks 2 nd in the US in the number of farms  105,000 farms Source: USDA-NASS

4 Missouri Livestock Receipts $3.1 billion Source: USDA-NASS

5 What technology has changed agriculture the most? Tractor Electricity Trailer Truck Bio Fuels

6 Number of U.S. Farms Source: USDA-NASS

7 Number of U.S. Tractors Source: USDA-NASS

8 Number of U.S. Farms with Electricity Note: The use of electricity on farms after 1954 was so widespread throughout the states that there seemed no need to obtain further information Source: USDA-NASS

9 Number of U.S. Tractors, Farms and Farms with Electricity Thousands of Farms

10 Trailer Trucks

11 One Trailer of Market Hogs 53,000 lbs. live weight 200 hogs 10,000 pork chops

12 One Trailer of Milk 50,000 lbs. of milk 5,813 gallons of milk 93,000 8 oz. glasses of milk 5,000 lbs. of cheese

13 600 Sow Farrow to Finish (25-ton Truck Lots) WeeklyAnnual Market Hogs2104 Corn Soybean Meal1.158 Supplement0.126 Total6.9362

14 700-cow Dairy (25-ton Truck Lots) WeeklyAnnual Milk 7365 Feedstuffs (includes Corn Silage, Alfalfa Silage, Alfalfa Hay, Grass Hay, Corn, Soybean Meal, Cotton Seed and Mineral/Vitamins Total

15 Economic Impact of Animal Agriculture

16 2,400-head Contract Finishing Unit Swine Construction Economic Impact  Construction Cost = $520,000 (includes buildings, manure storage and water supply)

17 2,400-head Contract Finishing Unit Farm level annual economic impact  $122,000 in gross revenue to swine operation including contract payments and manure value  $3,500 spent on real estate and property taxes  $5,000 spent on utilities  500 acres needed for feed (corn)  320 acres for manure application in corn soybean rotation  $50 per acre fertilizer value $207,000 in annual economic activity state wide (multiplier effect)

18 700-cow Dairy Operation Dairy Construction Economic Impact  Construction Cost = $2,483,000 (includes milking parlor, freestall barn, holding area, bunker silo, manure storage and water supply)  Dairy machinery needed = $250,000

19 700-cow Dairy Operation Farm Level Annual Economic Impact  $2.4 million in gross revenue to dairy  $6.0 million in economic activity (multiplier effect)  $10,000 spent on real estate and property taxes  $60,000 spent on utilities, fuel and oil  11 full-time positions created ($260,000 in labor expenses)  1,466 acres needed for feed (corn silage, alfalfa, etc.)  At least 1,626 acres needed for nutrient management  $32 to $56 per acre fertilizer value

20 Multiplier Effect of Missouri’s Livestock Sector 2005 SectorCash Receipts Additional Impact Total -- Millions of dollars -- Beef Poultry971?? Pigs Dairy

21 Biofuels Industry

22 Annual Operation Impacts of the Four Ethanol plants (160 MGY) CategoryDirectIndirectInducedTotal Employment (jobs) 1612, ,022 Labor income (million dollars) $20$73$27$121 Value added (million dollars) $36$130$50$215 Net total output (million dollars) $285$192$45$522 Tax revenues at the federal, state and local level - $43 million Corn Used in Production – 56 million bushels Golden Triangle Energy, LLC. Craig, Missouri

23 Yearly Operating Expenses for Ethanol Plants PurchasesCurrent Production500 MGY800 MGY Corn $126 million$592 million$942 million Natural gas $40 million$132 million$212 million Electricity $5 million$17 million$27 million Enzymes and chemicals $15 million$50 million$82 million Repairs and maintenance $6 million$19 million$31 million Labor $8 million$28 million$45 million Water $2 million$6 million$10 million Depreciation $14 million$43 million$70 million Other $24 million$75 million$120 million Total operating expenses $241 million$961 million$1.5 billion

24 Conclusions Why agriculture has changed Animal agriculture is an important economic contributor to Missouri’s economy Animal agriculture faces new opportunities and challenges with the growing biofuels industry

25 Rex Ricketts, Director University of Missouri Extension Commercial Agriculture Program Commercial Agriculture Program The Emerging Role of Agriculture in Economic Development


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