Economic Contributions of Florida Beef and Dairy Cattle and Allied Industries

Sponsored by Florida Cattlemen’s Association and Florida Dairy Producers

Alan W. Hodges and Christa D. Court

University of Florida-IFAS, Food & Resource Economics Department

Project Scope of Work

• Compile secondary information on Florida beef and dairy cattle

• Conduct internet survey of Florida cattle producers and allied industries

• Estimate total regional economic contributions at state and county levels, including multiplier effects, using IMPLANinput-output model: employment (jobs), output (revenue), value added, labor income, property income, taxes

• Summarize literature on non-market values of environmental services provided by Florida cattle ranches

• Prepare technical project report and executive summary for public via electronic media

• Present study findings to the industry

• Consult with sponsors on public relations messaging

Data Item 2014 2015 2016 2017 2018 2019

Beef Cow Inventory (head, Jan. 1) 907,000 906,000 905,000 908,000 886,000 914,000

Milk Cow Inventory (head, Jan. 1) 123,000 124,000 125,000 122,000 124,000 116,000

Calf Crop (head) 820,000 800,000 810,000 790,000 820,000

Cattle and Calves Production Value (million $)

798.4 786.3 510.6 501.8

Milk Production (million pounds) 2,508 2,582 2,495 2,496 2,379

Milk Price Received ($/cwt) 28.2 21.3 19.6 21.5 19.9*

Milk Production Value (million $) 707.3 550.0 490.6 536.6 473.4*

Florida Beef and Dairy Cattle Inventory and Production

Source: USDA-NASS*Estimated value from monthly averages

Florida Agricultural Land Use

Source: USDA-NASS

0

1

2

3

4

5

6

7

1997 2002 2007 2012

Mill

ion

Acr

es

All pasturedland

Pasture (excl.grazed cropland,woodland)

Cropland

Farm woodland

Source: USDA-NASS

Florida’s Top Cattle Counties

0 50 100 150 200 250 300 350 400 450 500 550

Osceola

Highlands

Okeechobee

Polk

Glades

De Soto

Hendry

Hardee

Marion

Charlotte

Sumter

Hillsborough

Pasco

Brevard

Orange

St. Lucie

Alachua

Indian River

Manatee

Martin

Lake

Levy

Thousand Acres (2012)

Pasture (excl. pasturedwoodland and cropland)

Woodland pastured

Cropland pastured

0 25,000 50,000 75,000 100,000 125,000

OKEECHOBEEHIGHLANDS

POLKOSCEOLA

HARDEEDE SOTO

SUWANNEEMARION

ALACHUAJACKSON

HILLSBOROUGHCOLUMBIA

PASCOMANATEEGILCHRIST

LAFAYETTECHARLOTTE

BREVARDLAKE

INDIAN RIVERORANGE

Number Cows, Jan. 2018

Beef

Dairy

Industry SectorEmployment

(Jobs)Output

(M$)

Employee Compen-

sation(M$)

Other Property Type Income (M$)

Total Value Added (M$)

Domestic & International Exports (M$)

Beef cattle ranching and farming 7,061 549 11 36 128 244

Dairy cattle and milk production 1,530 491 23 33 152 68

Fluid milk manufacturing 1,450 1,108 90 55 147 63

Creamery butter manufacturing 15 22 0 1 2 1

Cheese manufacturing 67 64 5 2 7 62

Dry, condensed, and evaporated dairy product manufacturing

38 51 1 1 2 31

Ice cream and frozen dessert manufacturing 902 325 24 22 47 157

Animal slaughtering (except poultry) 316 213 13 10 24 93

Meat processed from carcasses 1,130 574 50 17 70 141

Rendering and meat byproduct processing 326 159 19 2 21 104

Total All Sectors 12,834 3,557 236 180 600 964

Values in millions dollars. Source: Implan model for Florida (Implan Group, LLC)

Florida Beef and Dairy Cattle Farming and Processing Industry Direct Employment, Output, Value Added and Exports in 2016

0

500

1,000

1,500

2,000

2,500

3,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Mill

ion

Do

llars

, 20

16

Beef cattle ranching andfarming

Dairy cattle and milk production

Animal slaughtering, rendering,and processing

Dairy product manufacturing

Source: Implan Group, LLC

Output (Revenue) Trend in Florida Beef and Dairy Cattle Farming and Processing Industries, 2007-16

Principal Business TypeNumber

RespondentsAnnual Sales

($)Fulltime

Employees

Part-time & Seasonal

Employees

Capital Improvements Last 3 Years ($)

Beef cattle ranch or dairy farm 285 271,307,481 1,175 583 39,420,435

Beef or dairy processor/manufacturer 2 3,800,000 38 0

Agricultural consultant 5 3,914,866 14 8 27,000

Animal transportation services 3 264,000 1 5 135,000

Cattle or animal product marketing broker/dealer 3 1,134,000 6 8 286,500

Farm supply or equipment wholesaler or retailer 5 7,557,000 77 0 0

Veterinary services 2 1,030,000 17 6 75,000

Other type of business 20 18,275,500 67 36 1,139,149

Mixed businesses 28 46,473,000 51 57 717,100

Don't know 3 5,000 2 0

Not Available 69 30,000 2 0 0

Total 425 353,790,847 1,450 703 41,800,184

Survey Results by Principal Business TypeOnline survey to FCA mailing list, June 17 to Sep. 3, 2018; 425 valid respondents

Principal Farm EnterpriseNumber

RespondentsAnnual Sales

($)Employees

(Full/Part-time)Farm Area

(Acres)Cattle Herd

(Head)

Beef cow-calf production 199 35,816,481 583 266,814 76,284

Dairy milk production 15 210,110,000 793 38,657 70,575

Seedstock production or breeding services 8 759,000 26 3,236 620

Beef stocker production 5 18,500 6 10,180 10,081

Beef feedlot or veal production 2 1,930,000 15 10,012 3,530

Other crop production 4 4,150,000 44 23,925 7,205

Hay or silage production 6 615,000 8 2,575 355

Other animal production 2 75,000 8 72 20

Agritourism/agritainment 1 0 1 750 375

Other activity 5 2,926,500 55 12,175 11,705

Multiple enterprises 76 69,285,500 399 140,507 66,450

Total 323 325,685,981 1,938 508,903 247,200

Survey Results for Farm-Ranch Enterprises

0 50 100 150 200 250 300

Beef cattle ranch or dairy farm

Cattle or animal product marketing broker or…

Beef or dairy processor/manufacturer

Farm supply or equipment wholesaler or retailer

Animal transportation services

Veterinary services

Agricultural consultant

Other type of business

Million Dollars

Survey Results: Business Type Sales

0 50 100 150 200 250

Dairy milk production

Beef cow-calf production

Beef stocker production

Beef or dairy seedstock production…

Other crop production

Hay or silage production

Timber harvesting

Beef feedlot or veal production

Natural product harvesting

Agritourism/agritainment

Other activity

Other animal production

Million Dollars

Survey Results: Farm Enterprise Sales

0 25 50 75 100 125

Processor

Auction market

Contract buyer

Other local market

Online

Other non-local market

Million Dollars

Survey Results: Farm Market Channel Sales

0% 10% 20% 30% 40% 50% 60% 70%

Rotational grazing

Invasive species control

Controlled release fertilizers for pastures

Winter grazing or wildlife forage plots

Prescribed burning

Fencing to exclude cattle from waterways

Manure landspreading for crop fertilization

Market branded product (e.g. Angus beef, Fresh from Florida,

Water retention impoundments

Natural production system (no synthetic pesticides or fertil

Heritage breed conservation (e.g. Cracker cattle)

Market to local restaurants or Community Supported Agricultu

Certified organic production

Maintain natural areas for wildlife habitat

Anaerobic digester treatment of manure

Percent of Farm-Ranch Respondents

Survey Results: Farm Production, Marketing, and Environmental Practices

Selected Comments by Survey Respondents Regarding Contributions to Their Community

Every business in our county benefits from the money we make from our cows. The feed store makes a good amount of it.

... our operation provides a clean watershed, wildlife habitat, buffer from urbanization, pay taxes, do not require a lot of services from local government, and contribute positively through involvement in our local community.

I have encouraged and mentored many small/new cattlemen/women who want a few cows, some even selling their first property to purchase larger property and more cattle. I spend hours answering questions, making farm visits, pulling first calves.

My ranch provides homes for many birds, small animals, trees. I practice best management practices and are enrolled in BMP. I believe it is important to keep the ranches , the open land is good for the environment and aquifer... Farmers and ranchers are the best stewards of the land and of the animals both domestic and wild. I feel that is a great contribution to our community.

Payroll was $8,240,000 to local tri-county residents; we deal with a local feed company, vet/med company, tractor dealership, etc. The majority of our revenues stay local.

Provide housing for most employees. Donate time and money to local youth activities such as 4-H and FFA. Rely heavily on local businesses for most purchases and service.

Provides wildlife protection, water absorption, and income for small businesses.

Provides wildlife protection, water absorption, and income for small businesses.

...The true value to our community and state is what our operation does for communities and state for open space, water, wildlife habitat.

We donate to 40-50 different charity organizations annually.

... by keeping this farm land and following BMPs we feel our impact is one that is beyond measure.

Selected Comments by Survey Respondents Regarding Other Topics

…am trying to use the advancements in technology as a tool to advance my herd of registered black Angus cattle. Parentage, defect, and genomic testing on animals that were produced by embryo transfer have given me a 10 year jumpstart on the genetics that I typically come across in the Florida market.

Beef prices need to be raised. It is getting hard to run a small ranch not making any money.

Cattle market prices have not kept up with cost of living! A small rancher can not stay in business at this rate. I am a third generation rancher don't think I can stay in ranching if things don't change!

Dairy handles a lot of money that cycles thru local businesses from employee pay checks and other goods and services purchased. Unfortunately dairy farmers don't get to keep much as margins are very tight. A small rise in milk price would allow for more economic growth as farmers reinvest in their business.

Keeping cattle reduces taxes because of Greenbelt laws. But I still pay taxes on the land.

...We are likely to remove orange trees and replace with beef cattle pasture in the next 3 to 5 years.

Summary of Economic Contributions of Beef and Dairy Cattle Farming and Allied Industries in Florida in 2017

Industry-ActivityEmployment

(Jobs)

Labor Income

(Mill. $)

Value Added

(Mill. $)Output (Mill. $)

Percent of

Employment

Beef cattle farms 14,720 326 509 1,362 12.5%

Dairy farms 6,288 332 503 1,164 5.3%

Support activities for animal production, vet

services, animal feed manuf.5,804 252 388 891 4.9%

Dairy product manufacturing 12,860 670 1,102 3,387 10.9%

Meat processing 14,668 627 950 3,115 12.4%

Livestock and meat/dairy product wholesalers 11,049 648 1,213 1,970 9.3%

Retail sales of beef and dairy products at

grocery stores and meat markets51,577 1,723 2,891 4,742 43.6%

Farm capital improvements (avg. last 3 years) 1,225 60 97 168 1.0%

Total All Industries-Activities 118,191 4,639 7,653 16,798 100.0%

Subtotal Direct Multiplier Effects 58,221 1,996 3,085 8,179 49.3%

Subtotal Indirect Multiplier Effects 32,093 1,426 2,331 4,719 27.2%

Subtotal Induced Multiplier Effects 27,876 1,217 2,238 3,901 23.6%

Subtotal farming, support activities and

manufacturing54,340 2,208 3,452 9,918 46.0%

Subtotal wholesale and retail distribution 62,625 2,371 4,104 6,712 53.0%

Employment Contributions of Beef and Dairy Cattle Production and Allied Industries in Florida in 2017

0 10 20 30 40 50 60

Beef cattle farms

Dairy farms

Support activities for animal production

Dairy product manufacturing

Meat processing

Livestock, meat, dairy wholesalers

Retail sales of beef and dairy products

Farm capital improvements (avg 3 years)

1000 Fulltime, Part-time Jobs

Direct

Indirect

Induced

Employment Contributions of Beef and Dairy Cattle Production and Processing Industries in the Top Florida Counties in 2017

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

Miami-DadePolk

Palm BeachHillsboroughOkeechobee

DuvalBroward

SumterOrangeHardee

HighlandsColumbiaHernando

MarionSuwannee

ManateeVolusia

GilchristHendryPutnam

Fulltime & Part-time Jobs

Beef cattle ranching

Dairy farms

Support activities

Dairy manufacturing

Meat processing

Map of Florida County Dependence on the Cattle Industry in Terms of Employment Contributions as Share of Total County Employment

< 1%

1.1% – 5%

5.1% – 10%

10.1% – 15%

> 15%

Alan W. Hodgesawhodges@ufl.edu

(352) 294-7674

Christa D. Courtccourt@ufl.edu(352) 294-7675

Connect. Explore. Engage.

Full report and fact sheet available at https://fred.ifas.ufl.edu/economicimpactanalysis/