2. “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

3. Agriculture is a powerful economic force in Wisconsin.

4. Messages Agriculture is a powerful economic force in Wisconsin. Agriculture stimulates economic activity. Agriculture provides jobs. Wisconsin agriculture is diverse. All farms are important to Wisconsin ’ s economy.

5. How important is agriculture to the state’s economy? Agriculture accounts for $51.5 billion in economic activity. Agriculture provides jobs for 419,556 Wisconsin citizens. Agriculture contributes $16.8 billion to the state’s total income.

6. Agriculture stimulates economic activity Wisconsin agriculture generates more than $51.5 billion in economic activity. –Includes the direct effect of agricultural production and value added processing. It also includes the way this activity circulates in the economy. Every new dollar of sales of ag products generates an additional $.80 of economic activity in other parts of the Wisconsin economy.

7. $51.5 billion economic impact Direct effect of agriculture is $28.6 billion. –Includes the sale of all farm products and value-added products. Indirect effect creates another $17.6 billion in economic activity. –Includes business-to-business purchases such as fuel, fertilizer, feed, farm equipment, veterinary services and crop consultants, to name a few. Induced effect then generates another $5.3 billion in activity. –Includes spending by workers in agriculture-related businesses and profits those businesses earn.

8. Agriculture provides jobs Wisconsin agriculture provides 419,556 of those jobs. That’s 12.2 percent of the workforce. Every new job in agriculture creates an additional 1.3 jobs in Wisconsin.

9. Agriculture provides jobs Jobs that exist because of agriculture in Wisconsin Agriculture (production)178,528 Manufacturing88,498 Services57,294 Wholesale and retail trade54,606 Finance, insurance, real estate15,894 Transportation, communication, utilities15,516 Construction7,226 Government1,994 Total419,556 Percent of Wisconsin Total12.2%

10. Agriculture contributes to state income Agriculture contributes $16.8 billion or about 10% of Wisconsin total income. –Includes wages, salaries and benefits and profits of farmers, value added processing and ag related businesses. For every new dollar of agricultural income, an additional $1.78 of state income is generated.

11. Agriculture pays taxes Economic activity associated with Wisconsin agriculture generates more than $1.76 billion in local and state taxes. –Does not include all property taxes paid to support local schools.

12. Agriculture pays taxes Taxes paid by agriculture Corporate Profit Tax$ 82 million Fees/Charges/Other$269 million Income Tax$362 million Sales Tax$473 million Property Tax$574 million Total$1.76 billion

13. Dairy’s impact in Wisconsin Dairy is the largest part of Wisconsin agriculture. Wisconsin milk production and the dairy industry contribute more than $20.6 billion to the state economy. –The production and sale of milk accounts for $4.1 billion in activity. –Processing of milk into dairy products accounts for another $16.5 billion.

14. Dairy’s impact in Wisconsin One dairy cow generates $2,000 to $2,500 direct income to producers. One dairy cow generates between $15,000 and $17,000 of economic activity. There are about 200 plants that manufacture one or more dairy products. Wisconsin’s on-farm milk production and dairy processing accounts for about 160,000 jobs, or 4.6 percent of the state’s workforce. –On-farm milk production and businesses that directly support milk production creates 82,581 jobs. –Dairy processing creates another 90,462 jobs.

15. Horticulture is growing in Wisconsin The production of trees and plants for landscaping and agricultural production is a rapidly growing segment of Wisconsin’s agricultural industry. Greenhouses, tree farms, nurseries, and sod farms and other horticultural businesses add to the diversity of agriculture in the state. Horticulture generates $1.1 billion in state economic activity, providing 22,802 jobs.

16. Wisconsin agriculture is diverse Wisconsin is one of the top ten agricultural states in the nation, and it leads in the production of many commodities and products.

17. Wisconsin agriculture is diverse FIRST Cheese Snap beans Corn for silage Cranberries Ginseng Mink pelts SECOND Milk Milk cows Butter Carrots THIRD Potatoes Sweet corn for processing Green peas for processing FOURTH Tart cherries Maple syrup FIFTH Mint for oil Cucumber for pickles

18. Wisconsin agriculture is diverse Wisconsin’s top commodities (Sales by dollar value, 2002) 1. Milk$2.66 billion 2. Cattle & calves$745 million 3. Corn $565 million 4. Soybeans$212 million 5. Potatoes$199 million 6. Greenhouse & Nursery$146 million 7. Cranberries$103 million 8. Hogs$93 million 9. Eggs$49 million 10. Broilers$43 million

19. Agriculture and the environment Wisconsin farmers own and manage the resources on 16 million acres of land, 44 percent of all land in the state. Consider these steps farmers take in protecting the environment: –Wisconsin farmers have enrolled more than 635,000 acres of their land in the Conservation Reserve Program to protect the environment and provide habitat for wildlife. –More than 36,000 acres are enrolled in the Conservation Reserve Enhancement Program. –Wisconsin farmers save 9 million tons of topsoil annually, through crop rotation, terraces and buffer strips, significantly protecting lakes and streams.

20. Who owns the farms in Wisconsin

21. Research partners UW-Madison College of Agricultural and Life Sciences University of Wisconsin Cooperative Extension Wisconsin Farm Bureau Federation Wisconsin Milk Marketing Board Wisconsin Ag in the Classroom Wisconsin Department of Agriculture, Trade and Consumer Protection