1. Economic Impacts of U.S. Agricultural Trade on the South ORGANIZED SYMPOSIUM Southern Agricultural Economics Association 43rd Annual Meetings Program February 5-8, 2011 Corpus Christi, Texas

2. Impacts of Agricultural Exports on the South Mechel Paggi Director, Center for Agricultural Business Flynn Adcock International Program Coordinator and Assistant Director Parr Rosson Professor and Extension Economist-International Trade and Marketing http://cnas.tamu.edu www.csufcab.com Director, Center for North American Studies Department of Agricultural Economics Texas A&M University

4. Source: USDA, FAS, State Fact Sheets

6. Estimated Economic Impacts  Using 2008 Data for the Input-Output Model IMPLAN, Constructed a Model for the Southern U.S.  Input the Reported Southern U.S. Exports into the IMPLAN  Results includes the value of Output, Value Added, and Employment Required to Support the Exports  Direct Impacts Related to Exported Commodities  Indirect/Induced Impacts Related to Supporting

7. Types of Economic Impacts  Employment: Total number of paid employees, including part time workers where part time workers are counted as full time equivalents  Output: The value of production or industry sales

8. Types of Economic Impacts Value Added  In the context of IMPLAN, value added is very similar to gross domestic product (GDP).  It includes four components: wages, business income, other income, and indirect business taxes. Therefore, it accounts for the value of work, land, and capital.  For example, businesses purchase raw or intermediate products and repackage or transform them into new products to be sold to consumers.  The difference between the cost of the intermediate goods and the final product is the amount by which businesses have added value in production, and, hence, to the economy.

9. Types of Economic Impacts Value Added 1. Wages. The sum of workers’ wages and salaries as well as benefits, including health and life insurance, gratuities, bonuses and retirement payments. 2. Business income. Income received by local businesses and the self-employed; it is also called proprietor’s income. Depending upon local economic conditions, between five and 15 percent of the earnings by individuals comes from self-employment. 3. Other income. These are payments to individuals in the form of rents received on properties, royalties from contracts, dividends paid by corporations, and profits earned by corporations. 4. Indirect business taxes. Federal, State and local excise, property, and sales taxes as well as taxes on other business-related activities or equipment, such as taxes related to motor vehicles.

10. Economic Impacts Agricultural Exports United States, 2009 DirectIndirectInducedTotal Output ($Billions) $96.5 $120.4$63.6$280.5 Value Added ($Billions) $28.9$49.6$33.8$112.3 Employment (Jobs) 473,259664,981417,5781,555,818

11. Economic Impacts Agricultural Exports Selected Southern States Texas, 2009 DirectIndirectInducedTotal Output ($1,000) $4,136,619$2,622,799$1,044,105$7,803,522 Value Added ($1,000) $1,214,125$1,093,747$598,844$2,906,716 Employment (Jobs) 30,60719,118 7,719 57,444

12. Economic Impacts Agricultural Exports Selected Southern States Florida, 2009 DirectIndirectInducedTotal Output ($1,000) $1,359,390$693,455$460,795$2,513,640 Value Added ($1,000) $514,771$340,711$269,330$1,124,812 Employment (Jobs) 8,1017,3293,71919,149

13. Economic Impacts Agricultural Exports Selected Southern States North Carolina, 2009 DirectIndirectInducedTotal Output ($1,000) $2,380,620$1,212,664$551,844$4,145,129 Value Added ($1,000) $537,657$ 559,162$ 318,240$ 1,415,060 Employment (Jobs) 13,822 8,360 4,808 26,990

14. Economic Impacts Agricultural Exports Selected Southern U.S. States Output, Texas ($1,000) DescriptionDirectIndirectInducedTotal 4,136,618.62,622,799.01,044,104.97,803,522.4 Cotton farming1,307,173.144,863.7110.31,352,147.2 Animal (except poultry) slaughtering, rendering, and processing964,385.7104,287.43,580.51,072,253.5 Grain farming617,244.629,616.7190.1647,051.4 Other animal food manufacturing597,675.5101,140.8847.2699,663.5 Poultry processing251,509.727,281.92,402.8281,194.4 Fluid milk and butter manufacturing60,992.76,145.52,314.969,453.1 All other crop farming57,079.29,007.7112.766,199.6 Tree nut farming39,559.837.75.339,602.7 Fruit farming37,121.5132.759.037,313.2 Oilseed farming30,388.1464.43.030,855.6 Fruit and vegetable canning, pickling, and drying28,144.5665.2909.029,718.7 Dry, condensed, and evaporated dairy product manufacturing26,776.03,463.4694.130,933.5 Sugar cane mills and refining24,356.84,271.2179.928,807.9 Frozen food manufacturing21,657.1923.31,046.623,627.0 Vegetable and melon farming21,047.2917.3528.522,493.0 Cheese manufacturing20,089.41,360.9489.921,940.2 Cattle ranching and farming11,232.1396,257.51,326.2408,815.8 Soybean and other oilseed processing8,447.931,331.5220.740,000.2 Wet corn milling7,080.0114.112.87,206.9 Flour milling and malt manufacturing4,625.014,488.6701.419,815.0 Animal production, except cattle and poultry and eggs32.829,747.1225.130,004.9 Greenhouse, nursery, and floriculture production0.0348.0574.5922.6

15. Economic Impacts Agricultural Exports Selected Southern U.S. States : Employment, Texas (Jobs) DescriptionDirectIndirectInducedTotal 30,606.719,118.57,719.157,444.3 Cotton farming12,252.4420.51.012,673.9 Grain farming12,038.1577.63.712,619.4 Animal (except poultry) slaughtering, rendering, and processing2,028.2219.37.52,255.0 Poultry processing1,077.2116.810.31,204.3 Fruit farming643.92.31.0647.2 Other animal food manufacturing606.3102.60.9709.8 Tree nut farming470.90.40.1471.5 Oilseed farming459.77.00.0466.8 All other crop farming404.763.90.8469.4 Vegetable and melon farming169.47.44.3181.0 Cattle ranching and farming161.55,697.019.15,877.6 Fluid milk and butter manufacturing83.88.43.295.4 Frozen food manufacturing71.33.03.477.8 Fruit and vegetable canning, pickling, and drying53.11.31.756.1 Sugar cane mills and refining29.35.10.234.7 Dry, condensed, and evaporated dairy product manufacturing23.63.10.627.3 Cheese manufacturing22.01.50.524.1 Flour milling and malt manufacturing3.912.20.616.7 Wet corn milling3.90.10.03.9 Soybean and other oilseed processing2.48.90.111.3 Animal production, except cattle and poultry and eggs1.21,100.08.31,109.6 Greenhouse, nursery, and floriculture production0.04.98.113.0

16. Economic Impacts Agricultural Exports Selected Southern U.S. States : Value Added, Texas ($1,000) DescriptionDirectIndirectInducedTotal 1,214,124.71,093,747.2598,844.12,906,716.0 Cotton farming614,524.121,091.251.9635,667.1 Grain farming292,772.814,047.990.2306,910.9 Real estate establishments0.0158,454.752,625.3211,080.0 Wholesale trade businesses0.0135,125.535,131.4170,257.0 Animal (except poultry) slaughtering, rendering, and processing102,963.811,134.4382.3114,480.4 Imputed rental activity for owner-occupied dwellings0.0 85,608.3 Monetary authorities and depository credit intermediation activities0.062,536.420,750.583,286.9 Electric power generation, transmission, and distribution0.056,869.617,144.574,014.1 Cattle ranching and farming1,928.668,038.7227.770,195.0 Support activities for agriculture and forestry0.064,533.2119.564,652.7 Other animal food manufacturing52,794.88,934.174.861,803.8 Poultry processing48,915.05,305.9467.354,688.2 Extraction of oil and natural gas0.047,268.76,181.353,450.0 Transport by truck0.044,556.84,978.749,535.5 Offices of physicians, dentists, and other health practitioners0.00.234,784.934,785.1 Food services and drinking places0.07,004.824,802.231,807.0 Management of companies and enterprises0.024,301.22,991.227,292.4 Telecommunications0.011,680.013,325.025,005.0 Tree nut farming24,391.323.33.224,417.8 Pesticide and other agricultural chemical manufacturing0.022,457.8164.222,622.0 Nondepository credit intermediation and related activities0.010,880.211,663.222,543.4 Insurance carriers0.03,781.516,820.420,601.9 Legal services0.09,948.59,077.119,025.6

17. Economic Impacts Agricultural Exports Selected Southern U.S. States Output, Florida ($1,000) DescriptionDirectIndirectInducedTotal 1,359,390693,455460,7952,513,640 Fruit farming458,6339,257396468,286 Sugar cane mills and refining239,57856,448104296,130 Fruit and vegetable canning, pickling, and drying199,0136,469699206,181 Frozen food manufacturing177,6227,567545185,734 Vegetable and melon farming75,19517,64670993,551 All other crop farming63,4594093863,906 Other animal food manufacturing41,5426,23023148,004 Cotton farming32,714538133,252 Poultry processing23,5691,16215524,885 Fluid milk and butter manufacturing14,3311,53184916,710 Animal (except poultry) slaughtering, rendering, and processing6,9562,59251210,060 Oilseed farming6,3178406,401 Dry, condensed, and evaporated dairy product manufacturing6,29139136,343 Cheese manufacturing4,720188254,934 Grain farming3,92736544,297 Wineries2,242441202,407 Soybean and other oilseed processing1,7466821,816 Tree nut farming1,385911,394 Wet corn milling103262131 Flour milling and malt manufacturing451,8371041,987 Animal production, except cattle and poultry and eggs464389735 Greenhouse, nursery, and floriculture production0391342732

18. Economic Impacts Agricultural Exports Selected Southern U.S. States: Employment, Florida (Jobs) DescriptionDirectIndirectInducedTotal 8,101.47,329.83,718.519,149.6 Fruit farming5,637.2113.84.95,755.8 Support activities for agriculture and forestry0.02,879.16.82,885.9 Sugarcane and sugar beet farming0.01,353.20.61,353.8 Frozen food manufacturing523.422.31.6547.3 Wholesale trade businesses0.0414.0122.9536.9 Vegetable and melon farming429.2100.74.0533.9 Real estate establishments0.0234.5243.9478.4 Food services and drinking places0.078.6354.8433.5 Sugar cane mills and refining297.770.20.1368.0 Fruit and vegetable canning, pickling, and drying347.511.31.2360.1 All other crop farming318.92.10.2321.1 Transport by truck0.0196.932.7229.6 Cotton farming217.53.60.0221.1 Employment services0.0112.896.2209.0 Offices of physicians, dentists, and other health practitioners0.0 194.6 Management of companies and enterprises0.0164.321.8186.2 Private hospitals0.0 159.4 Services to buildings and dwellings0.099.255.3154.5 Monetary authorities and depository credit intermediation activities0.096.656.4153.0 Retail Stores - Food and beverage0.04.2124.6128.8 Retail Stores - General merchandise0.04.1116.3120.3 Nursing and residential care facilities0.0 114.8 Poultry processing103.65.10.7109.4 Legal services0.049.950.5100.5

19. Economic Impacts Agricultural Exports Selected Southern U.S. States : Value Added, Florida ($1,000) DirectIndirectInducedTotal $514,771$340,711$269,330$1,124,812 Fruit farming$287,656$5,806$249$293,710 Vegetable and melon farming$49,388$11,590$466$61,444 Fruit and vegetable canning, pickling, and drying$45,521$1,480$160$47,160 Frozen food manufacturing$41,705$1,777$128$43,610 Sugar cane mills and refining$33,841$7,973$15$41,829 All other crop farming$23,381$151$14$23,545 Cotton farming$15,277$251$0$15,528 Poultry processing$4,108$202$27$4,337 Oilseed farming$3,483$46$0$3,529 Other animal food manufacturing$3,406$511$19$3,936 Grain farming$2,050$191$2$2,243 Fluid milk and butter manufacturing$1,828$195$108$2,131 Tree nut farming$791$5$0$797 Animal (except poultry) slaughtering, rendering, and processing$695$259$51$1,005 Cheese manufacturing$569$23$3$595 Dry, condensed, and evaporated dairy product manufacturing$548$3$1$552 Wineries$436$9$23$468 Soybean and other oilseed processing$61$2$0$64 Flour milling and malt manufacturing$14$561$32$607 Wet corn milling$11$3$0$14 Animal production, except cattle and poultry and eggs$2$338$47$386 Real Estate$0$25,993$62,267$88,260

20. Summary & Conclusions Agricultural Exports are an Important Source Of Income and Employment for the Southern Region IMPLAN Analysis is a Good Way to Illustrate That Importance and is Easily Understood In Communication with Stakeholders This Can Be a Valuable Tool