“wisconsin and the agricultural economy” (steve deller, professor of agriculture and applied...

22

Upload: janis-mcgee

Post on 08-Jan-2018

217 views

Category:

Documents


1 download

DESCRIPTION

Agriculture is a powerful economic force in Wisconsin.

TRANSCRIPT

Page 1: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)
Page 2: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

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

Page 3: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Agriculture Agriculture is a powerful is a powerful economic force economic force in Wisconsin.in Wisconsin.

Page 4: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

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.

Page 5: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

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.

Page 6: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Agriculture stimulates economic activity• Wisconsin agriculture generates

more than $51.5 billion in economicactivity. – 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.

Page 7: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

$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.

Page 8: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Agricultureprovides 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.

Page 9: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Agricultureprovides jobs

Jobs that exist because of agriculture in WisconsinAgriculture (production) 178,528

Manufacturing 88,498

Services 57,294

Wholesale and retail trade 54,606

Finance, insurance, real estate 15,894

Transportation, communication, utilities 15,516

Construction 7,226

Government 1,994

Total 419,556Percent of Wisconsin Total 12.2%

Page 10: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

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.

Page 11: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

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.

Page 12: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Agriculture pays taxes

Taxes paid by agricultureCorporate 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

Page 13: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Dairy’s impact inWisconsin

• 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.

Page 14: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Dairy’s impact inWisconsin • 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.

Page 15: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Horticulture is growingin 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.

Page 16: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Wisconsin agricultureis diverse • Wisconsin is one of the top ten

agricultural states in the nation, and it leads in the production of many commodities and products.

Page 17: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Wisconsin agricultureis 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 processingFOURTH• Tart cherries• Maple syrupFIFTH• Mint for oil• Cucumber for pickles

Page 18: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Wisconsin agricultureis diverse

Wisconsin’s top commodities(Sales by dollar value, 2002)

1. Milk $2.66 billion2. Cattle & calves $745 million

3. Corn $565 million4. 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

Page 19: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Agriculture and theenvironment

• 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.

Page 20: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Who owns the farmsin Wisconsin

Individuals & families 89%

Family partnerships 6.9%

Family corporations 3.6%

Non-family corporations .4%

Page 21: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)

Research partners

UW-Madison College of Agricultural and Life SciencesUniversity of Wisconsin Cooperative ExtensionWisconsin Farm Bureau FederationWisconsin Milk Marketing BoardWisconsin Ag in the ClassroomWisconsin Department of Agriculture, Trade andConsumer Protection

Page 22: “Wisconsin and the Agricultural Economy” (Steve Deller, Professor of Agriculture and Applied Economics. UW-Madison)