Animal Agriculture Economic Analysis: The National Overview United Soybean Board June 2013

Objectives Gather information on and analyze the following: Animal agriculture production, by state and by product Usage of soybean meal in animal agriculture Quantify the economic impact of animal agriculture at the state and national levels 2

Animal Agriculture Database Sources  National Agriculture Statistics Service (NASS)  Census of Agriculture  Bureau of Economic Analysis, Dept. of Commerce Content of Excel files  Quantity and value of production, animal numbers  Soybean meal use  Economic impact: output, earnings, jobs, taxes 3

Most US Animal Agriculture Expanded Between 2002 and 2012 The economic downturn beginning in 2007 impacted production, but production has bounced back. Cattle production is down 2.8% over the period. Pork production is up 22.7%. Broiler production is up 12.4%. Turkey production is up 0.7%. Egg production is up 6.5%. Milk production grew steadily, by 17.8% 4

US Cattle & Calves Production, Cattle production is slowly declining.

US Cattle & Calves Production Shifts,

US Hogs & Pigs Production, Hog and pig output is advancing.

US Hogs & Pigs Production Shifts,

US Broiler Production, Broiler production is still growing.

US Broiler Production Shifts, * 10

US Turkey Production, Turkey output is again increasing slowly but cyclically.

Shifts in Turkey Production,

US Egg Production, Eggs have experienced slow, steady growth.

Shifts in Egg Production,

US Milk Production, Milk production is showing steady growth.

Shifts in Milk Production,

US Output Index, Cattle, Hogs, & Milk 17 All sectors, except cattle, experienced growth in volume.

US Output Index, Broilers, Turkeys, & Eggs 18 All sectors experienced growth in volume.

Animal Agriculture Can Boost State Economies Animal agriculture plays a major role in the economy of several states and is important for nearly all states. The impacts are many:  States benefit from the direct investment and jobs, both at the farm level and at the slaughter, processing, and manufacturing levels  They also benefit from multiplier effects on other sectors Animal agriculture is also the leading source of demand for soybean meal. Growth in output is usually concentrated in a small number of states for each species. 19

Multipliers Estimate Broader Economic Impact Regional Industrial Multiplier System from the Department of Commerce  Output and earnings multipliers = $ of total output and household earnings created by $1 of production in an industry  Employment multiplier = # of jobs per $1 million Four animal agriculture industries are  Beef cattle  Dairy cattle  Poultry and egg  Hogs and pigs/ other 20

Economic Impact of 2012 Animal Agriculture 21 * States in blue contain estimates.

Economic Impact, Continued 22 * States in blue contain estimates.

Impact of Changes in Animal Output, * States in blue contain estimates.

Impact of Changes, Continued 24 * States in blue contain estimates.

Change in Economic Impact,

Change in Wage Earnings,

Change in Number of Jobs,

Change in Income Tax Revenue,

State SBM Use By Segment, 1,000 tons, 2011/12 29 * States in blue contain estimates. States in green are withheld.

State SBM Use, Continued 30 * States in blue contain estimates. States in green are withheld.

Share of National SBM Use By State 31

Missouri 32

Animal Agriculture is Important to Missouri An expanding animal agriculture sector creates economic activity, income, jobs and tax revenue throughout the state economy. In 2012, Missouri ranked 13 th in the nation in cash receipts from livestock sales. Missouri ranked 5 th in cash receipts from turkey production, 6 th from hog production, 9 th from cattle production and 13 th from broiler production. 33

Economic Multipliers for Missouri, Every million dollars of livestock product output in Missouri results in $ million in total economic output in the state, Generates $360,000-$550,000 in family income, And is responsible for additional jobs.

Economic Impacts in Missouri 35 Animal agriculture in Missouri represents $11.5 billion in revenues, $1.9 billion in household income, about 73,000 jobs, and yielded an estimated $511 million in income taxes.

Missouri Output Index, Cattle is up 8%. Hog production peaked in 2006, and has since declined. Milk declining steadily. Broilers estimated up 34%. Turkeys down 25%. Eggs up slightly. 36

Missouri Value of Production, 2012 ($1,000) 37

Missouri Cattle & Calves Production 38

39 Missouri Hogs & Pigs Production

Missouri Broilers Production 40

Missouri Eggs Production 41

Missouri Turkey Production 42

Missouri Milk Production 43

Missouri: Soybean Meal Use by Segment, 2011/12 44

Missouri: Soybean Meal Use for Feed in