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

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 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

5. US Cattle & Calves Production, 2002-2012 5 Cattle production is slowly declining.

6. US Cattle & Calves Production Shifts, 2002-2012 6

7. US Hogs & Pigs Production, 2002-2012 7 Hog and pig output is advancing.

8. US Hogs & Pigs Production Shifts, 2002-2012 8

9. US Broiler Production, 2002-2012 9 Broiler production is still growing.

10. US Broiler Production Shifts, 2002-2012* 10

11. US Turkey Production, 2002-2012 11 Turkey output is again increasing slowly but cyclically.

12. Shifts in Turkey Production, 2002-2012 12

13. US Egg Production, 2002-2012 13 Eggs have experienced slow, steady growth.

14. Shifts in Egg Production, 2002-2012 14

15. US Milk Production, 2002-2012 15 Milk production is showing steady growth.

16. Shifts in Milk Production, 2002-2012 16

17. US Output Index, 2002-2012 Cattle, Hogs, & Milk 17 All sectors, except cattle, experienced growth in volume.

18. US Output Index, 2002-2012 Broilers, Turkeys, & Eggs 18 All sectors experienced growth in volume.

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 2012 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, 2002-2012 23 * States in blue contain estimates.

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

25. Change in Economic Impact, 2002-2012 25

26. Change in Wage Earnings, 2002-2012 26

27. Change in Number of Jobs, 2002-2012 27

28. Change in Income Tax Revenue, 2002-2012 28

29. State SBM Use By Segment, 1,000 tons, 2011/12 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. Arizona 32

33. Animal Agriculture is Important to Arizona Milk production is the most valuable farm product in the state, followed by cattle and calves. Arizona ranked 13 th in cash receipts in the nation for milk production. Arizona ranked 19 th in cash receipts in the nation for cattle production. 33

34. Economic Multipliers for Arizona, 2012 34 Every million dollars of livestock product output in Arizona results in $1.66-2.26 million in total economic output in the state, Generates $300,000-$400,000 in family income, And is responsible for 10-13 additional jobs.

35. Economic Impacts in Arizona 35 Animal agriculture in Arizona represents $2.9 billion in revenues, $528,000 million in household income, about 17,800 jobs, and yielded an estimated $130 million in income taxes.

36. Arizona Output Index, 2002-2012 Cattle output is declining. Hogs are up 50%. Milk is increasing. 36

37. Arizona Value of Production, 2012 ($1,000) 37

38. Arizona Cattle & Calves Production 38

39. 39 Arizona Hogs & Pigs production

40. Arizona Milk Production 40

41. Arizona: Soybean Meal Use by Segment, 2011/12 41

42. Arizona: Soybean Meal Use for Feed in 2012 42