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