Economic Contributions of Agricultural, Food Manufacturing, and Natural Resource Industries in Florida in 2006
Alan W. Hodges, Mohammad Rahmani, and W. David Mulkey
The agricultural, food manufacturing, and natural resource industries are a significant component of the Florida economy. The purpose of this report is to quantify the magnitude of these industries' contribution to the economy of Florida in 2006, updating a previous study for 2004 (Hodges, Rahmani, and Mulkey, December 2006).
Data for this analysis were obtained from the IMPLAN Professional database (Minnesota IMPLAN Group), which in turn were derived from the National Income and Product Accounts and employment data for the United States (U.S. Department of Commerce).
The total regional economic impacts for each sector were estimated using IMPLAN input-output multipliers which capture the indirect and induced effects of sales outside Florida that bring new money into the region and generate further economic activity as these dollars circulate through the economy. Indirect effects represent the economic activity generated by businesses that furnish inputs to the agricultural, food manufacturing, and natural resource industries while induced effects represent the impacts of industry employee household spending. The total economic impact of an industry is the sum of direct, indirect, and induced effects. Impact estimates in this update are expressed in 2007 U.S. dollars using the Gross Domestic Product Implicit Price Deflator indices for mid-year 2001 through 2007 (U.S. Department of Commerce). IMPLAN data were available for 2001 through 2004 and 2006, but not for 2005.
Total industry output (sales) of the agricultural, food manufacturing, and natural resource industries in Florida was over $59 billion in 2006. Total exports outside the state of Florida amounted to $32.67 billion. As a result of the indirect and induced multiplier effects from these exports, the total output impacts were estimated at $100.25 billion.
Direct employment in the industry was 404,399 full-time and part-time jobs, and total employment impacts were estimated at 766,884 full-time and part-time jobs. The direct value-added contribution of agricultural, food manufacturing, and natural resource industries in 2006 was estimated at $20.4 billion (2007 dollars), and total value-added impacts were $44.36 billion.
Value-added is a broad measure of economic contribution that is comparable to the gross domestic product (GDP) at the national level, which represents the net income created by an industry or the difference between industry revenues and input purchases from other sectors; it includes personal and business net income, and capital consumption. The labor (earned) income impact was estimated to be $27.74 billion. Indirect business taxes paid to local, state, and federal governments were $2.98 billion.
The industry groups with the largest value-added impacts in Florida were:
| Environmental horticulture | $8.14 billion |
|---|---|
| Forestry and forest products | $7.98 billion |
| Fruits and vegetable farming and processing | $7.28 billion |
| Agricultural inputs and support services | $6.54 billion |
| Other food product manufacturing | $6.36 billion |
| Tobacco farming and manufacturing | $2.91 billion |
| Mining | $1.94 billion |
| Sugarcane farming and refined sugar manufacturing | $1.42 billion |
| Livestock and dairy farming and animal products manufacturing | $1.10 billion |
Relatively smaller industry groups with value added impacts of less than $1 billion were:
| Other crop farming | $227 million |
|---|---|
| Fishing and seafood products | $221 million |
| Grain and oilseed farming and processing | $160 million |
| Wildlife hunting | $81 million |
In terms of employment impacts, the largest industry groups were:
| Environmental horticulture | 178,805 jobs |
|---|---|
| Agricultural inputs and services | 161,342 jobs |
| Forestry, wood, and paper products manufacturing | 116,951 jobs |
| Fruit and vegetable farming and processing | 16,203 jobs |
Individual industry sectors that generated the largest value-added impacts were:
| Landscape services | $5.47 billion |
|---|---|
| Soft drink and ice manufacturing | $3.53 billion |
| Other tobacco product manufacturing | $2.72 billion |
| Greenhouse and nursery production | $2.67 billion |
| Fruit farming | $2.40 billion |
| Agriculture and forestry support activities | $2.31 billion |
| Vegetable and melon farming | $2.21 billion |
| Phosphatic fertilizer manufacturing | $2.20 billion |
| Fruit and vegetable canning and drying | $1.71 billion |
| Paper and paperboard mills | $1.63 billion |
| Forest nurseries and timber tracts | $1.38 billion |
| Veterinary services | $1.05 billion |
| Engineered wood and truss manufacturing | $1.03 billion |
Regional value-added impacts of agricultural, food manufacturing, and natural resource industries the nine economic regions of Florida were:
| Miami-Fort Lauderdale | $11.59 billion |
|---|---|
| Orlando | $10.27 billion |
| Tampa-St. Petersburg-Clearwater | $7.80 billion |
| Jacksonville | $6.53 billion |
| Sarasota-Bradenton | $4.38 billion |
| Gainesville | $1.38 billion |
| Tallahassee | $1.17 billion |
| Pensacola | $761 million |
| Panama City | $542 million |
Footnotes
This is EDIS document FE702, a publication of the Food and Resource Economics Department, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. Published November 2007. Please visit the EDIS website at http://edis.ifas.ufl.edu. For this complete report in PDF format visit http://edis.ifas.ufl.edu/pdffiles/FE/FE70200.pdf. For this complete report in HTML format visit http://edis.ifas.ufl.edu/FE702.
Alan W. Hodges, Associate Extension Specialist, Mohammad Rahmani, Coordinator of Economic Analysis, and W. David Mulkey, Professor, Food and Resource Economics Department, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL
Copyright Information
This document is copyrighted by the University of Florida, Institute of Food and Agricultural Sciences (UF/IFAS) for the people of the State of Florida. UF/IFAS retains all rights under all conventions, but permits free reproduction by all agents and offices of the Cooperative Extension Service and the people of the State of Florida. Permission is granted to others to use these materials in part or in full for educational purposes, provided that full credit is given to the UF/IFAS, citing the publication, its source, and date of publication.
