Regional
Economic Impacts of Florida's
Agricultural and Natural Resource Industries
Alan W. Hodges and W. David Mulkey
Estimates of economic impacts were developed for the agricultural and natural resource industries in Florida in 2003, based on Implan data for Florida, which are derived from the National Income and Product Accounts of the United States and various regional data sources (MIG, 2005).
Over 100 individual sectors were identified as related to agriculture and natural resources, including sectors for commodity production, processing and manufacturing, and associated input suppliers and supporting services. However, wholesale and retail distribution of food and kindred products, restaurants, and other food service establishments were excluded from the analysis, since these are not strictly related to agriculture or natural resources.
Estimates of total regional economic impacts for each sector were computed using Implan SAM multipliers, including the indirect and induced effects of domestic and foreign export sales outside Florida. Indirect effects represent the impacts of allied businesses that supply inputs to the agricultural and natural resource industries, while induced effects represent the impacts of industry employee household spending.
Values were expressed in 2005 U.S. dollars using the Gross Domestic Product (GDP) Implicit Price Deflator (U.S. Department of Commerce), which restated values for 2003 approximately 5.7 percent higher.
Total industry output or sales of the agricultural and natural resource industries in Florida in 2003 was $50.8 billion, while total output impacts, including the indirect and induced multiplier effects, were $87.6 billion.
Total direct employment was 388,916 jobs, and total employment impacts were 756,993 jobs.
Total value added was $19.2 billion, and total value added impacts were $41.1 billion, which represents the net value created by the industry, measured as the difference between industry revenues and input purchases from other sectors. It also represents personal and business net income, and capital consumption.
The labor (earned) income impact of agriculture and natural resources was $25.1 billion.
Indirect business taxes paid to local, state, and federal governments were $2.6 billion.
Total domestic and foreign export sales outside the state of Florida were $27.6 billion.
The largest industry groups in terms of value added impacts were:
| Fruit and vegetable farming and processing | $7.5 billion |
| Environmental horticulture | $6.8 billion |
| Forestry and forest products | $6.5 billion |
| Agricultural inputs and support services | $6.5 billion |
| Other food product manufacturing | $5.5 billion |
| Tobacco farming and manufacturing | $3.0 billion |
| Sugarcane farming and refined sugar manufacturing | $1.8 billion |
| Mining | $1.6 billion |
| Livestock, dairy farming, animal products manufacturing | $1.2 billion |
Some other smaller industry groups with value added impacts less than $1 billion were:
| Fishing and seafood products | $413 million |
| Grain and oilseed farming and processing | $93 million |
| Other crop farming, including cotton, nuts, miscellaneous crops | $239 million |
| Wildlife hunting and trapping | $45 million |
Some of the largest individual industry sectors, all with over $1 billion in value-added impacts were:
| Landscape services | $4.16 billion |
| Soft drink and ice manufacturing | $2.92 billion |
| Other tobacco product manufacturing | $2.79 billion |
| Greenhouse and nursery production | $2.66 billion |
| Phosphatic fertilizer manufacturing | $2.39 billion |
| Fruit and vegetable canning and drying | $2.26 billion |
| Agriculture and forestry support activities | $2.12 billion |
| Fruit farming | $1.99 billion |
| Vegetable and melon farming | $1.98 billion |
| Frozen food manufacturing | $1.27 billion |
| Sugar manufacturing | $1.26 billion |
| Paper and paperboard mills | $1.23 billion |
| Forest nurseries and timber tracts | $1.05 billion |
Regional value-added impacts of agriculture and natural resource industries for the nine economic regions of Florida, defined based on employee commuting patterns were:
| Miami-Fort Lauderdale | $11.84 billion |
| Orlando | $9.37 billion |
| Tampa-St.Petersburg-Clearwater | $6.71 billion |
| Jacksonville | $5.70 billion |
| Sarasota-Bradenton | $3.78 billion |
| Gainesville | $1.19 billion |
| Tallahassee | $1.21 billion |
| Pensacola | $688 million |
| Panama City | $381 million |
Footnotes
1. This is EDIS document FE627, 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 February 2006. For the complete report, visit the EDIS website at http://edis.ifas.ufl.edu/FE627.
2. Alan W. Hodges, Associate-In, 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
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