The Emerging Role of Agriculture in Economic Development

1. The Emerging Role of Agriculture in Economic Development Rex Ricketts, Director University of Missouri Extension Commercial Agriculture Program Commercial Agriculture Program

2. Overview • Importance of Missouri's Agriculture • Historical Changes in Agriculture • Tractor • Electricity • Trailer Truck • Economic Impact of Animal Production

3. Missouri Agriculture 2006 • $5.62 billion in farm receipts • 55% livestock • 45% crops • Missouri ranks 2nd in the US in the number of farms • 105,000 farms Source: USDA-NASS

4. Missouri Livestock Receipts - 2005 $3.1 billion Source: USDA-NASS

5. What technology has changed agriculture the most? Tractor Electricity Trailer Truck Bio Fuels

6. Number of U.S. Farms Source: USDA-NASS

7. Number of U.S. Tractors Source: USDA-NASS

8. Number of U.S. Farms with Electricity Note: The use of electricity on farms after 1954 was so widespread throughout the states that there seemed no need to obtain further information Source: USDA-NASS

9. Number of U.S. Tractors, Farms and Farms with Electricity Thousands of Farms

10. Trailer Trucks

11. One Trailer of Market Hogs • 53,000 lbs. live weight • 200 hogs • 10,000 pork chops

12. One Trailer of Milk • 50,000 lbs. of milk • 5,813 gallons of milk • 93,000 8 oz. glasses of milk • 5,000 lbs. of cheese

13. 600 Sow Farrow to Finish(25-ton Truck Lots)

14. 700-cow Dairy(25-ton Truck Lots)

15. Economic Impact of Animal Agriculture

16. 2,400-head Contract Finishing Unit • Swine Construction Economic Impact • Construction Cost = $520,000 (includes buildings, manure storage and water supply)

17. 2,400-head Contract Finishing Unit • Farm level annual economic impact • $122,000 in gross revenue to swine operation including contract payments and manure value • $3,500 spent on real estate and property taxes • $5,000 spent on utilities • 500 acres needed for feed (corn) • 320 acres for manure application in corn soybean rotation • $50 per acre fertilizer value • $207,000 in annual economic activity state wide (multiplier effect)

18. 700-cow Dairy Operation • Dairy Construction Economic Impact • Construction Cost = $2,483,000(includes milking parlor, freestall barn, holding area, bunker silo, manure storage and water supply) • Dairy machinery needed = $250,000

19. 700-cow Dairy Operation • Farm Level Annual Economic Impact • $2.4 million in gross revenue to dairy • $6.0 million in economic activity (multiplier effect) • $10,000 spent on real estate and property taxes • $60,000 spent on utilities, fuel and oil • 11 full-time positions created ($260,000 in labor expenses) • 1,466 acres needed for feed (corn silage, alfalfa, etc.) • At least 1,626 acres needed for nutrient management • $32 to $56 per acre fertilizer value

20. Multiplier Effect of Missouri’s Livestock Sector 2005

21. Biofuels Industry

22. Annual Operation Impacts of the Four Ethanol plants (160 MGY) Tax revenues at the federal, state and local level - $43 million Corn Used in Production – 56 million bushels Golden Triangle Energy, LLC. Craig, Missouri

23. Yearly Operating Expenses for Ethanol Plants

24. Conclusions • Why agriculture has changed • Animal agriculture is an important economic contributor to Missouri’s economy • Animal agriculture faces new opportunities and challenges with the growing biofuels industry

25. The Emerging Role of Agriculture in Economic Development Rex Ricketts, Director University of Missouri Extension Commercial Agriculture Program Commercial Agriculture Program