Willow Holoubek. Partnering Associations A-FAN An interrelated system of crop, livestock and biofuel...
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Transcript of 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