Economic Impact of Agriculture on Oklahoma’s Economy: 2000

Agricultural Production and Processing as Percentage of Gross State Product

4.4

4.2

10.3

8.7

6.9

6.9

5.6

4.5

3.6

3.3

3.3

2.9

0.0 2.0 4.0 6.0 8.0 10.0 12.0

U.S.

Great P lains

South Dakota

Nebraska

North Dakota

Montana

Kansas

Oklahoma

Texas

Wyoming

Colorado

New Mexico

Source: Department of Commerce, Bureau of Economic Analysis, Regional Economic Analysis Division

Oklahoma Agricultural Production and Processing

$0$500

$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

(Million)

•Since 1986, Oklahoma has experienced steady growth

•GSP of combined agricultural production and processing increased from $2.5 billion in 1986 to $3.8 billion in 1999

Oklahoma Agricultural Production and Processing

• Agricultural production increased 38 percent from 1986 to 1999

• Agricultural processing steadily increased 83 percent from 1986 to 1999

$0

$500

$1,000

$1,500

$2,000

$2,500

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Source: Department of Commerce, Bureau of Economic Analysis, Regional Economic Analysis Division.

(Milli

on)

Farm Production Processed Farm Products

Oklahoma Crop Sales

• Dollar value of sales has been varying from year-to-year

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Source: Oklahoma Department of Agriculture

(Millio

n)

Oklahoma Livestock Sales

• Poultry and egg and hog production has been rapidly expanding

• Poultry and egg increased 138 percent from $178 million in $427 million in 2000

• Hog increased over one thousand percent from $39 million to $472 million in 2000

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Source: Oklahoma Department of Agriculture

(Mill

ion

)

Value Added Products, Alva, OK

Agricultural Processing

Processed Food Products

• Food processing accounted for 1% of GSP• Doubled from $523 million in 1986 to $986

million in 1999

$0

$200

$400

$600

$800

$1,000

$1,200

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Source: Department of Commerce, Bureau of Economic Analysis, Regional, Economic Analysis Division.

(Milli

on)

Lumber and Wood Products

• Has been varying around $100 million and $200 million between 1986 and 1999

$0

$50

$100

$150

$200

$250

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Source: Deparment of Commerce, Bureau of Economic Analysis, Regional Economic Analysis Division.

(Millio

n)

Paper and Allied Products

Grew 124 % from $233 million in 1986 to $522 million in 1999

$0

$100

$200

$300

$400

$500

$600

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Source: Department of Commerce, Bureau of Economic Analysis, Regional, Economic Analysis Division

(Milli

on)

Textile Processing

Textile mill industries have remained at the same approximate level of GSP (about $150 to $200 million).

$0

$50

$100

$150

$200

$250

$300

$350

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Source: Deparment of Commerce, Bureau of Economic Analysis, Regional Economic Analysis Division

(Millio

n)

Agricultural Production and Processing as Percentage of Oklahoma GSP

• GSP of Ag production and processing grew from $2.5 billion to $3.8 billion from 1986 to 1999

• Growth of 52 percent

• Significant growth in Hogs, Poultry and eggs and Food processing

0.0

1.0

2.0

3.0

4.0

5.0

6.0

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Source: Department of Commerce, Bureau of Economic Analysis, Regional Economic Analysis Division.

Measuring Economy-Wide Impacts

Summary of Agricultural Sector Impacts on Oklahoma’s Economy, 2000

Jobs GSP ($ million)

Ag production 111,536 1,350

Ag processing 39,610 1,721

Total Ag-Direct 151,146 3,071

Ag indirect & induced 106,458 4,051

Total Agriculture Related 257,604 7,122

Direct, Indirect and Induced, and Total Employment

Industry Direct Employment Number of Jobs

Indirect & Induced Employment Jobs

Total Economy Employment

Number of jobs

Cattle & Calves 47,564 28,558 76,122Poultry and Eggs 3,750 8,108 11,858Dairy Farm Products 1,636 2,769 4,405Hogs, Pigs and Swine

21,740 10,754 32,494

Other Meat Animal Products

4,268 1,159 5,427

Sheep, Lambs and Goats

62 37 99

Commercial Fishing 110 25 135Total Livestock 79,130 51,410 130,540

Direct, Indirect and Induced, and Total Employment

Industry Direct Employment Number of Jobs

Indirect & Induced Employment Jobs

Total Economy Employment

Number of jobs

Food Grains 7,318 5,293 12,611Greenhouse and Nursery Products

2,483 2,117 4,600

Hay and Pasture 2,539 1,221 3,760Cotton 298 751 1,049Feed Grains 2,183 2,786 4,969Oil Bearing Crops 1,869 940 2,809Fruits 352 254 606Vegetables 298 447 745Miscellaneous Crops 1,150 231 1,381Total Crops 18,490 14,041 32,531

Direct, Indirect and Induced, and Total Employment

Industry Direct Employment

Number of Jobs

Indirect & Induced

Employment Jobs

Total Economy Employment

Number of jobs

Forestry Products 779 1,046 1,825Agricultural, Forestry, Fishery Services

3,983 1,445 5,428

Landscape & Horticultural Services 9,154 4,438 13,592Total Agricultural Services 13,927 6,299 20,845

Griffin Food

Relative Size of Agriculture Impacts

Employment Impact by Ag sector on Oklahoma’s Economy

• The total number of Oklahoma’s employment was about 1.9 million

• Ag production and processing directly generated 151,146 jobs.

Ag production

(6.0)

Ag indirect & induced

Effects(5.6)

Ag processing

(2.0)

Non-Agriculture

(86.4)

GSP Impact by Ag Sector on Oklahoma’s Economy

• In 2000, Oklahoma’s Gross State Product (GSP) was $86.4 billion. • Ag production and processing directly added about $3 billion to Oklahoma’s GSP

Ag Indirect & Induced Effects

(4.9)

Ag Processing(2.1)

Ag Production(1.6)

Non-Agriculture(91.4)

Distribution of Employment in Agricultural Production

• Ag production added 111,536 jobs to Oklahoma’s employment

Total Livestock

(71.0)

Total Crops (16.6)

Landscape and

Horticultural Services

(9.2)

Forestry Products

(0.7)

Agricultural Services

(11.8)

Distribution of GSP in Agricultural Production

• Ag production added about $1.4 billion to Oklahoma’s GSP.

Landscape and

Horticultural Services

10%

Total Crops22%

Agricultural, Forestry, Fishery

Services3%

Forestry Products

1%

Total Livestock

64%

Impact of Supporting Industries

Employment Generated by Supporting Industries of Agricultural Production

• The industries that supply goods and services to the agricultural production and to the employees of support industries employed 72,379 jobs

• Most jobs are generated by Ag, services and trade

271

526

1,373

1,841

3,246

4,919

6,038

15,843

18,451

19,871

0 5000 10000 15000 20000 25000

Special Industries

Mining

Construction

Government

Transportation, Comm, Util.

Finance, Insur, Real Estate

Manufacturing

Wholesale, Retail

Services

Agriculture

GSP Generated by Supporting Industries of Agricultural Production

• Support industries added $2.4 billion to Oklahoma’s economy

• Most of the indirect and induced impacts on GSP generated by agricultural sector are in services, and financial/insurance

10,423

39,821

56,071

76,420

244,524

272,872

384,123

393,897

412,232

496,243

0 100000 200000 300000 400000 500000 600000

Special Industries

Construction

Mining

Government

Agriculture

Transportation, Comm, Util.

Manufacturing

Finance, Insur, Real Estate

Wholesale, Retail

Services

(Million Dollars)

Summary

• In 2000, Ag sector counted for about 13.6 % of employment and 8.6 % of OK’s GSP

• Livestock production contributed $2.5 billion to GSP, provided 130 thousand jobs

• Livestock processing contributed $1.6 billion to GSP, provided 36 thousand jobs

• Total Livestock contributed $4 billion to GSP, provided 166 thousand jobs to OK’s economy

Summary

• Crop production contributed $810 million to GSP and provided 33 thousand jobs

• Crop processing contributed $888 million to GSP and provided 18 thousand jobs

• Forestry contributed $48 million to GSP and provided 2 thousand jobs

• Ag services contributed $378 million to GSP and provided over 20 thousand jobs

• Textile and forestry contributed $934 million to GSP and provided 20 thousand jobs