1. Animal Agriculture Economic Analysis: The National Overview United Soybean Board June 2014

2. 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

3. 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

4. Most US Animal Agriculture Expanded Between 2003 and 2013 Production in most categories is up over the past decade, despite the extended recession and recent drought. Cattle production is down 2.6% over the period. Pork production is up 24.8%. Broiler production is up 15.2%. Turkey production is down 2.8%. Egg production is up 8.8%. Milk production grew by 18.1% 4

5. US Cattle & Calf Production, 2003-2013 5 Cattle production is slowly declining.

6. US Cattle & Calf Production Shifts, 2003-2013 6

7. US Hog & Pig Production, 2003-2013 7 Hog and pig output is advancing.

8. US Hogs & Pigs Production Shifts, 2003-2013 8

9. US Broiler Production, 2003-2013 9 Broiler production is still growing.

10. US Broiler Production Shifts, 2003-2013* 10

11. US Turkey Production, 2003-2013 11 Turkey output is down slightly.

12. Shifts in Turkey Production, 2003-2013 12

13. US Egg Production, 2003-2013 13 Eggs have experienced slow, steady growth.

14. Shifts in Egg Production, 2003-2013 14

15. US Milk Production, 2003-2013 15 Milk production has shown steady growth.

16. Shifts in Milk Production, 2003-2013 16

17. US Output Index, 2003-2013 Cattle, Hogs, & Milk 17 All sectors, except cattle, experienced growth in volume.

18. US Output Index, 2003-2013 Broilers, Turkeys, & Eggs 18

19. 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

20. 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

21. Economic Impact of 2013 Animal Agriculture 21 * States in blue contain estimates.

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

23. Impact of Changes in Animal Output, 2003-2013 23 * States in blue contain estimates.

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

25. Change in Economic Impact, 2003-2013 25

26. Change in Wage Earnings, 2003-2013 26

27. Change in Number of Jobs, 2003-2013 27

28. Change in Income Tax Revenue, 2003-2013 28

29. State SBM Use By Segment, 1,000 tons, 2012/13 29 * States in blue contain estimates. States in green are withheld.

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

31. Share of National SBM Use By State 31

32. Washington 32

33. Animal Agriculture is Important to Washington An expanding animal agriculture sector creates economic activity, income, jobs and tax revenue throughout the state economy. In 2013, Washington ranked 26 th in the nation in cash receipts from livestock sales. Washington ranks 10 th in the nation in milk cash receipts, 17 th in egg cash receipts, and 17 th in cattle cash receipts. Animal agriculture in Washington consumes significant quantities of soybean meal. 33

34. Economic Multipliers for Washington, 2013 34 Every million dollars of livestock product output in Washington results in $1.85-2.35 million in total economic output in the state, Generates $330,000-$410,000 in family income, And is responsible for 9-11 additional jobs.

35. Economic Impacts in Washington 35 Animal agriculture in Washington represents $5 billion in economic output, $905 million in household income, about 24,300 jobs, and yielded an estimated $184 million in income taxes.

36. Washington Output Index, 2003-2013 Cattle up 7%. Hogs estimated. Milk is up 14% on recent growth. Eggs steadily increasing and up 50%. Broiler numbers estimated. 36

37. Washington Value of Production, 2013 ($1,000) 37

38. Washington Cattle & Calf Production 38

39. 39 Washington Hog & Pig Production

40. Washington Broiler Production 40

41. Washington Egg Production 41

42. Washington Milk Production 42

43. Washington: Soybean Meal Use by Segment, 2012/13 43

44. Washington: Soybean Meal Use for Feed in 2013 44