By David Buland Economist Temple, Texas S. Hussain Ali Jafri Professor of Economics Tarleton State University Stacie A. Randals Tarleton State University.

Slides:

Advertisements

Similar presentations

Input-Output Analysis. Input-Output analysis creates a picture of a regional economy describing flows to and from industries and institutions.

Advertisements

Overview of the IMPLAN Model. Copyright © 2009 IHS Global Insight. All Rights Reserved. Agenda  IMPLAN Review  IMPLAN Case Study  Understanding Regional.

The Impact of the Aerospace Industry in Washington State

Farm & Ranch Business Management

Chapter 8 Measuring the Economy’s Performance Chapter 8:

TOURISM PETER ROBINSON MICHAEL LÜCK STEPHEN L. J. SMITH.

The Structure of the REMI - Model. Output Market Shares Labor & Capital Demand Population & Labor Supply Wages, Prices, & Profits REMI Model Structure.

Measuring Economic Impacts: Science, Art or Voodoo? Presentation to URBPL 5/6020 Jan Crispin-Little, Senior Economist Bureau of Economic and Business Research.

ECONOMIC IMPACTS OF THE NATURAL GAS INDUSTRY IN NORTH TEXAS Terry L. Clower, Ph.D. Center for Economic Development & Research University of North Texas.

Macroeconomics - Barro Chapter 12 1 C h a p t e r 1 2 Government Expenditure.

Energy Consumption in U.S. Agriculture John A. Miranowski Professor of Economics Iowa State University.

Contribution of Grain Production to the Washington Economy T. Randall Fortenbery Professor and Grain Commission Endowed Chair, School of Economic Sciences,

Economic Impact of Marshall County Hospital. KY Rural Health Works Program Eric A. Scorsone, Ph.D. UK Department of Agricultural Economics UK Cooperative.

Chapter 15 Gross Domestic Product

C H A P T E R C H E C K L I S T When you have completed your study of this chapter, you will be able to Define GDP and explain why the value of production,

Economic Contributions of Florida Agriculture, Natural Resources, Food & Kindred Product Manufacturing, Distribution and Service Industries: 2008 Update.

Massachusetts: Leading the Way on Ocean Management Assessment of Ocean and Coastal Economy in the Commonwealth of Massachusetts David Terkla University.

Chehalis River Basin Flood District Formation February 17, 2010.

Impact Analysis Assessing the change in local economic activity as a result of some change in the community Some potential issues What if we build a new.

Input-Output Model Basics Tom Harris University of Nevada, Reno University Center for Economic Development MS 204 Reno, NV and Gerald A. Doeksen.

Overview of the Bureau of Economic Analysis Regional Accounts at the BEA Robert L. Brown Calibrating the Nevada Economy: Data Tools for Assessing Our State.

Elliott D. Pollack & Company Goodwill Industries Operating in California Economic and Fiscal Impact 2012 Presented By: Elliott D. Pollack & company March.

Farmers’ Market Federation of New York Conference Your Market’s Economic Impact March 7, 2013.

1 CEDBR Fiscal Benefit – Cost Model Pattie Bradley, Senior Research Economist Center for Economic Development and Business Research July 2013.

1 Chapter 15 Gross Domestic Product Key Concepts Key Concepts Summary Practice Quiz Internet Exercises Internet Exercises ©2002 South-Western College Publishing.

Estimating the Employment Impacts of Corps of Engineers Activities Associated with the American Recovery and Reinvestment Act Dr. Wen-Huei Chang

Economic Indicators Lauren Rudd January 9, Same store sales 01/9/20142.

July 2012 The Economic Impact of Tourism in Clark County, Ohio.

The Farm and Food System Chapter 2. Agriculture’s Role in US Economy What do you consider Agriculture? Agriculture includes: Family Farms Corporate Farms.

© Harry Campbell & Richard Brown School of Economics The University of Queensland BENEFIT-COST ANALYSIS Financial and Economic Appraisal using Spreadsheets.

Macroeconomic Aggregates. The Importance of Economic Data For the practicing economists and those who must make economic decisions, measuring the economy.

Slide 0 CHAPTER 3 National Income Outline of model A closed economy, market-clearing model Supply side  factor markets (supply, demand, price)  determination.

Economic Models for Impact Assessment Steven R. Miller Senior Research Analyst Center for Economic Analysis Presented to the MI-SBTDC.

Tutorial 5 Multiplier effects and positive impacts.

Revisiting the Economic Impact of the Fayetteville Shale Kathy Deck, Director Center for Business and Economic Research June 7, 2012.

BEA’s Regional Economic Accounts: Past Improvements and What Lies Ahead for the Regional Program Robert L. Brown Calibrating the Nevada Economy: Data and.

Budgets: Uses in Farm Management

Economic Impacts of U.S. Agricultural Trade on the South ORGANIZED SYMPOSIUM Southern Agricultural Economics Association 43rd Annual Meetings Program February.

1 LECTURE 1 The Circular Flow and National Income Accounting.

CHAPTER 3 NATIONAL INCOME: WHERE IT COMES FROM AND WHERE IT GOES ECN 2003 MACROECONOMICS 1 Assoc. Prof. Yeşim Kuştepeli.

Budgeting Tools Enterprise Budgeting Partial Budgeting

Economic Activity and Productivity. To the economist, a market is a location or situation where buyers and sellers exchange an economic product Markets.

Circular Flow of Income

Budget Analysis Ag Management Chapter 4. Planning a Budget GGood planning = Increased Returns TThe job you do when your budget for your farm or ranch.

The Worth of Health Care By Gerald A. Doeksen Regents Professor and Director National Center for Rural Health Works Presentation at Virginia College of.

Chapter 1 Introduction to Labor Economics Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

Using Multiplier Analysis to Evaluate the Economic Impacts of NRCS Spending in Utah Julie Nelson, State Economist, NRCS Utah The Economic Effects of NRCS.

Economic and Fiscal Impacts of Devon Energy in the Barnett Shale of North Texas: An Update Bernard L. Weinstein, Ph.D.* Terry L. Clower, Ph.D. University.

“Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

When you have completed your study of this chapter, you will be able to C H A P T E R C H E C K L I S T Define GDP and explain why the value of production,

Economic Activity and Productivity. To the economist, a market is a location or situation where buyers and sellers exchange an economic product Markets.

IMPLAN was used to calculate regional economic benefits for the PL-566/Nebraska Natural Resources Commission Plan for Turkey Creek Watershed. The counties.

American Recovery and Reinvestment Act of 2009 NRCS, RD, and FSA Job Estimation Activities David Buland USDA NRCS Economist.

2.4.1and unit content Students should be able to: Define national income and show that it can be seen as a circular flow (and draw this) Explain.

Pensionomics 2014: Measuring the Economic Impact of DB Pension Expenditures MD Retired School Personnel Association Legislative Workshop November 13, 2014.

Take Out Module 38 Notes Open-Note Quiz When you are finished, take out the worksheet that was handed out yesterday.

Chapter 11: Economic Impact Analysis “Beware the Big Number” William Bellinger, Chapter 1 of this book.

1 CEDBR Fiscal Benefit – Cost Model Pattie Bradley, Senior Research Economist Center for Economic Development and Business Research September 2016.

… we will always want more than we can have

Determining the costs and revenues for dairy cattle

Agricultural Industry Profile

The Circular Flow of Income

Livestock agreements cash lease and share

Economic Activity and Productivity

The Economic Impact of the Conceptual Plan for the Redevelopment of the Green Bay Correctional Institution Site Commissioned by the Village of Allouez.

Harrisburg Business Alliance

National Accounting 28/04/2019 Dr. Amr Nazieh.

Economic Impacts of U.S. Agricultural Trade on the South

The Emerging Role of Agriculture in Economic Development

Some reflections on How to measure Employment impacts of energy projects at Partner country level: tools & methods, gaps & challenges Dr. Steffen Erdle,

Presentation transcript:

By David Buland Economist Temple, Texas S. Hussain Ali Jafri Professor of Economics Tarleton State University Stacie A. Randals Tarleton State University Economic Impact of the Erath County Dairy Industry

Texas and Erath Milk Production

Erath Co. Milk Production

Changes in regional Milk Production

Wholesale Milk Price

Dairy Industry as an Purchasing Institution Milk SalesSales of calves, bulls and heifersAvg. Capital ExpensesOther farm income Local Economy Conceptual Model

7 Input-Output Analysis Input-Output Assumptions - Constant returns to scale production function -i.e., linear - Homogeneous sector output - No input substitution - No supply constraints Definition - The assessment of change in overall economic activity as the result of some corresponding change in one or several activities.

8 Features: Industrial Sectors - Most 3 or 4 Digit SIC - All States and Counties in the U.S - All elements balanced to National Income and Product Account totals. IMPLAN Model Datasets

Multiplier Terms Defined Direct Effects – The initial immediate effects caused by a specific activity; for example, the initial investment in the construction of a new lagoon or the effects of the purchase of feed or medicines and the hiring of local labor, etc. The direct effect, or impact, will subsequently initiate a series of iterative rounds of income creation, spending, and re-spending that will result in Indirect Effects and Induced Effects. These three component effects—direct, indirect, and induced effects— constitute the Total Effects resulting from the initial, direct effect.

Definitions (cont.) Indirect Effects – The effects that result from the actions of the processing sectors to produce the Direct Effects. Therefore, the indirect effects are those changes to production, employment, incomes, etc., which take place as a result of the direct effects and include the effects on industry sectors that may be directly or indirectly related to the initially impacted sector.

Definitions (cont.) Induced Effects – The effects of spending by the households in the regional economy as the result of Direct and Indirect Effects from some economic activity. The induced effects arise from a general change in the earnings and spending patterns of the household sector of an economy due to the direct and indirect effects.

Definitions (cont.) Multiplier – A numeric measurement, expressed as a mathematical ratio, of the Total Effects, including the Direct, Indirect, and Induced Effects, to the direct effects of a specific activity, or a change in some activity.

Erath County’s Dairy Production Function

Leakages Leakages are items purchased or produced outside of the Impact Area. Leakages are less for the large state of Texas than for Erath County alone. –Erath125 industrial sectors –Texas497 industrial sectors

% From ERATH% From TEXAS 1. Feed51.0%74.1% 2. Labor - Wages Paid100% - Health Benefits73.5%89.4% - Owner’s Draw90.1% 3. Supplies96.2%96.8% 4. Insurance76.3%77.4% 5. Vet, Medicines99.8%100% 6. Breeding62.6%62.7% 7. Testing & Trimming99.5%100% 8. Repairs/Maintenance96.7%97.5% 9. Interest45.1%51.9% 10. Utilities99.9% 11. Milk Hauling98.5%100% 12. Promotion67.4%70.7% 13. Crop Expenses97.7%100% 14. Fuel, Oil, Gas99.2%100% 15. Taxes - Farm & Property99.9%100% - School99.2%100% 16. Mortgage/Rent Payments83.2% 17. Legal & Accounting65.8%66.1% 18. Cost of raising heifers91.5%100% 19. Repl. Heifers Purchased57.9%63.7% 20. Miscellaneous94.5%95.9% Regional Purchase Coefficients (RPC’s)

Major Adjustments at the local level. Feed purchased from the local store or imported. Replacement heifers from local and imported sources. Interest paid to local creditors.

EventDirectIndirectInducedTotal Operating Expenses $190,876,693$31,252,920$27,411,505$249,540,118 Wages$15,500,169$1,173,455$2,167,213$18,840,837 Owners’ Draw $3,150,845$235,006$421,411$3807,261 Capital Expenses $19,071,044$3,514,195$4,039,288$26,624,526 Total$228,598,751$32,661,381$34,039,417$299,403,936 Erath County Impacts

Erath County DirectIndirect/InducedTotal Operating Expenses$209,527,707$63,251,703$272,779,410 Capital Expenses$19,071,044$7,553,482$26,624,526 Total$228,598,751$70,805,185$299,403,936 Grand Total$320,827,476 Texas DirectIndirectTotal Operating Expenses$223,042,779$262,889,929$485,932,708 Capital Expenses$19,071,040$22,941,035$42,012,075 Total$230,518,945$196,625,337$527,944,783 Grand Total$549,368,323 Total Impact

Dairy Industry 1,980 Added Employment (Erath County) 3,615 Total Employment provided (Erath County) 5,595 Added Employment (State of Texas) 8,501 Total Employment provided (State of Texas)10,481 Jobs Created by Erath County’s Dairy Industry

Summary of Dairy Impacts

Value Added Categories

Loss of a 1,000 cow Dairy

Impact of $1 change in Milk Price

Conclusions The IMPLAN model provides a valuable tool for Economic Impact Studies But if you are concentrating on one particular industry, the core production functions and RPCs must be closely adjusted to match real local data. Secondary industries are not sensitive to these adjustments.