Agricultural Enterprises: An Important Economic Development Opportunity

1. Agricultural Enterprises:An Important Economic Development Opportunity Willow Holoubek

2. Partnering Associations

3. A-FAN • Livestock Development • Empowering communities with awareness of the impact of livestock production to make informed decisions • Connecting industry opportunities • Awareness Outreach • Connection farmers and ranchers with consumers • Helping Nebraskans become more aware of how important the livestock industry is to their personal economies

4. The Nebraska Advantage: An interrelated system of crop, livestock and biofuel production capacity unmatched anywhere 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

5. 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%

6. 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%

7. 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

8. 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

9. The Golden Triangle Nebraska’s unique agricultural production complex comprised of corn, soybeans, bio-fuels and livestock

10. 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

11. Livestock Expansion over the Last Decade: Cattle & Calves Prod.% Growth Nebraska +6% Iowa +9% Missouri +8% South Dakota -6% Kansas +2%

12. Livestock Expansion over the Last Decade: Annual Pig Crop #’s% Growth Nebraska +14% Iowa +31% Minnesota +25% Missouri +23% South Dakota +54%

13. Nebraska’s Share

14. Livestock Expansion over the Last Decade: Annual Market Hog Inventory% Growth Nebraska +3% Iowa +32% Minnesota +20% Missouri -8% Kansas +7%

15. US Market Pig Inventory

16. Example: 25% Increase In 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

17. 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

18. Associated In-State Feed Consumption Increase 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)

19. Livestock Expansion over the Last Decade: Dairy Cow Inventory% Growth Nebraska -17% Iowa -1% Colorado +38% Kansas +18% Missouri 0% South Dakota +10%

20. Milk Cow Inventory vs. Milk Production

21. For Every 2000 Head Dairy The Local Community will benefit Approximately $10 Million Increase in Economic Activity Annually!

22. Livestock Expansion over the Last Decade: Egg Production% Growth Nebraska -10% Iowa +67% Illinois +42% Missouri +15% South Dakota +21% Colorado +23%

23. Livestock Expansion over the Last Decade: Broiler Production% Growth Nebraska +33% Iowa +6% Missouri +34% South Dakota 0% Colorado 0% Kansas 0%

24. The total sales of agriculture-related manufacturing industries were $25.57 billion in 2010, approximately 30%morethan the combined production value of crops and livestock at the farm/ranch level.

25. 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

26. For every bushel and ton of crop commodities and head of feeder livestock shipped out of state, NEBRASKA drops potential value-added economic activity!

27. Change in economic impact, 2001-2011

28. 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

29. 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

30. 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.

31. Currently 26 Counties have achieved Livestock Friendly Status

33. Livestock Development supports Nebraska’s entire economy to strengthen throughout the state. $ $ $ $ $ $ $ $ $ $ $ $

34. Thank You!

35. 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

36. Willow Holoubek Executive 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 willowh@a-fan.org