willow holoubek. partnering associations a-fan an interrelated system of crop, livestock and biofuel...

Agricultural Enterprises:An Important Economic

Development OpportunityWillow Holoubek

Partnering Associations

A-FAN

1. Livestock Development• Empowering communities with awareness of

the impact of livestock production to make informed decisions

• Connecting industry opportunities

2. Awareness Outreach• Connection farmers and ranchers with

consumers• Helping Nebraskans become more aware of

how important the livestock industry is to their personal economies

The Nebraska Advantage:An interrelated system of crop, livestock

and biofuel production capacity unmatchedanywhere else in the country.

Nebraska Ranks:

#1 Irrigated Crop Acres (8.6 mi. ac.)#1 Commercial Red Meat Production

#1 Cattle on Feed Numbers#2 Corn-Based Ethanol Production

#2 Distillers Grain (DG’s) Production#3 Corn for Grain Production

#4 Soybean Production#5 All Hay Production#6 All Hogs and Pigs

#7 Commercial Hog Slaughter

Business Receipts 40.7%

Gross State Product 26.9%

Labor Income/Earnings 25.4%

Employment Numbers 23.7%

Nebraska Ag as a Percent of the Total Economy

Business Receipts 40.7%

Gross State Product 26.9%

Labor Income/Earnings 25.4%

Employment Numbers 23.7%

Nebraska Ag as a Percent of the Total Economy

For each $1.00 of crop production value, $0.59 in additional receipts

for Nebraska businesses are created, primarily outside of the agricultural production industry.

Agriculture Creates Economic Vitality

Each $1.00 of livestock sales yields $0.62 in additional final sales for

Nebraska businesses outside of the agricultural production industry.

Livestock Production Creates Economic Vitality

The Golden Triangle

Nebraska’s unique

agricultural

production complex

comprised of corn,

soybeans, bio-fuels

and livestock

The Recent Past: Imbalance of Growth Between Our Crop Sectors and Our Livestock Sectors:

• In Past Decade: NE Crop Output Value 300% NE Livestock Output Value 75% • Our Neighboring States Expanding

Their Livestock Industries Faster than

Nebraska

Livestock Expansion overthe Last Decade:

Cattle & Calves Prod. % Growth

Nebraska +6%Iowa +9%Missouri +8%South Dakota -6%Kansas +2%

Livestock Expansion overthe Last Decade:

Annual Pig Crop #’s % Growth

Nebraska +14%Iowa +31%Minnesota +25%Missouri +23%South Dakota +54%

Nebraska’s Share

Livestock Expansion overthe Last Decade:

Annual Market Hog Inventory % Growth

Nebraska +3%Iowa +32%Minnesota +20%Missouri -8%Kansas +7%

US Market Pig Inventory

Example: 25% IncreaseIn Finishing Facilities

Direct Impact:• 765 Jobs• $27 Million Labor & Proprietor Income• $55 Million Value-Added

Total Economic Impact• 2,900 Jobs• $98 Million Labor & Proprietor Income• $195 Million Value-Added

Local Tax Revenue Impacts

Finishing Facility Property Tax: $ 3.1 Million

Other Property Tax: $ 3.0 Million

Local Sales Tax: $ 322,000.00

TOTAL: $ 6.4 Million

11 Million Bu. Corn

19.5 Million Tn. Distillers Grains

67,200 Tn. Soybean Meal

(Over 9% Increase of In-State Utilization of Soybean Meal)

Associated In-State Feed Consumption Increase

Livestock Expansion overthe Last Decade:

Dairy Cow Inventory % Growth

Nebraska -17%Iowa -1%Colorado +38%Kansas +18%Missouri 0%South Dakota +10%

Milk Cow Inventory vs. Milk Production

For Every 2000 Head Dairy

The Local Community will benefit

Approximately $10 MillionIncrease in Economic Activity

Annually!

Livestock Expansion overthe Last Decade:

Egg Production % Growth

Nebraska -10%Iowa +67%Illinois +42%Missouri +15%South Dakota +21%Colorado +23%

Livestock Expansion overthe Last Decade:

Broiler Production % Growth

Nebraska +33%Iowa +6%Missouri +34%South Dakota 0%Colorado 0%Kansas 0%

The total sales of agriculture-related manufacturing

industries were $25.57 billion in 2010, approximately 30%

more than the combined production value of crops and

livestock at the farm/ranch level.

Presently, Nebraska exports:

One third of our corn crop (as grain)

More than 40% of distillers grains

More than 80% of soybean meal

More than 25% of annual pig crop

For every bushel and ton of crop commodities and head of feeder livestock shipped

out of state, NEBRASKA drops potential value-added

economic activity!

Change in economic impact, 2001-2011

The Future:

Significant Opportunities—Particularly for Hog, Dairy, and Poultry Expansion

Major Economic Development Implications from Livestock Based Value-Added Activity

Development of rural markets resulting in rural community and individual wealth

The Future:

“Layering livestock or poultry into existing operations is key to Nebraska’s rural development and opening the door for future generations to return home to the farm.”

Greg Ibach Nebraska Director of Agriculture

The Future: 3 billion people globally will enter the middle

class with more economies to demand protein by 2020.

Natural resources, water and land combined with innovation of crop production will position Nebraska for value added opportunities.

Increased export demands will cement rural economic impact.

Currently 26 Counties have achieved Livestock Friendly Status

Livestock Developmentsupports

Nebraska’s entire economy to strengthen throughout the state.

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Thank You!

Information Sources:

The 2010 Economic Impact of the

Nebraska Agricultural Production Complex

The Department of Agricultural Economics

June 2012 / Report 192

Eric Thompson, Bruce Johnson, Anil Giri

Animal Agriculture Economic Analysis:

The National Overview

United Soybean Board

Willow HoloubekExecutive Director

Alliance for the Future of Agriculture in Nebraska (A-FAN)

PO Box 84606

Lincoln, NE 68501-4606

Phone: 402.421.4455 Toll free: 1.888.580.2326

Cell: 402.710.1110

willowh@a-fan.org