Prepared by the St. Louis Agribusiness ClubPrepared by the St. Louis Agribusiness ClubOctober, 2004October, 2004

THE IMPORTANCE OF THE IMPORTANCE OF AGRIBUSINESS TO AGRIBUSINESS TO

THE BI-STATE ECONOMYTHE BI-STATE ECONOMY

AN OVERVIEW OF AGRICULTURE AN OVERVIEW OF AGRICULTURE

Planet Earth is home to Planet Earth is home to 6.3 billion6.3 billion people* people*

Experts say by the year Experts say by the year 20502050, our , our planet will have a population of planet will have a population of 9 9 billionbillion**

Feeding the world's population will be Feeding the world's population will be the responsibility of an efficient and the responsibility of an efficient and productive agricultureproductive agriculture

*Source: United Nations, World Population Prospects: The 1994 Revision; U.S. Census Bureau, International Programs Center, International Data Base and unpublished tables.

In the 1940s, In the 1940s, oneone farmer supplied farmer supplied 19 19 persons in the United States and persons in the United States and abroad*abroad*

Now, Now, oneone farmer supplies food for farmer supplies food for 135 135 peoplepeople - 97 in this country and 32 - 97 in this country and 32 abroad*  abroad* 

*Source: USDA Economic Research Service *Source: USDA Economic Research Service

AN OVERVIEW OF AGRICULTUREAN OVERVIEW OF AGRICULTURE … … con’tcon’t

WHAT ISWHAT IS AGRIBUSINESS? AGRIBUSINESS?

(according to the Agribusiness Council of America)(according to the Agribusiness Council of America)

AgribusinessAgribusiness – is a broad term which encompasses all aspects of agricultural production, processing and distribution.

This includes: Agribusiness/farm management Food, forest and fiber production - their

bi-product utilization Agricultural chemicals and pharmaceuticals

Agribusiness … con’tAgribusiness … con’t

Agricultural finance and trade Farm management Agro-environmental considerations Land development In short, all of the major elements

essential to the establishment and operation of efficient agro-food enterprises

The Bi-State Region is The Bi-State Region is the Center of the Center of

American AgricultureAmerican Agriculture

METROPOLITIAN METROPOLITIAN STATISTICAL AREASTATISTICAL AREA

Franklin

Jefferson

Lincoln

St. Charles

St. Louis

Warren

Clinton

Jersey

Madison

Monroe

St. Clair

LAND IN FARMS LAND IN FARMS (acres)(acres)

Land in farms is defined as all land operated by farms during the year. It includes crop and livestock acreage, wasteland, woodland, pasture, land in summer fallow, idle cropland, and land enrolled in the Conservation Reserve Program and other set aside or commodity acreage programs.

Source: 11 County (IL & MO) TOTAL. 2002 Census of Agriculture, USDA-NASS

2,213,337 2,213,337 ACRESACRES

NUMBER OF FARMS NUMBER OF FARMS IN THE BI-STATEIN THE BI-STATE

9,3659,365248 Acres 248 Acres

(avg. size of farm)(avg. size of farm)

A farm is defined as any establishment from which $1,000 or more of agricultural products were sold or would normally be sold during the year. An operation with one or more horses, Christmas tree farms and farms that were wholly enrolled in the Conservation Reserve Program were included in the Census farm count. Two new industries, maple syrup and short rotation woody crop farms, were also added.

Source: 11 County (IL & MO) TOTAL. 2002 Census of Agriculture, USDA-NASS

RIVER TRANSPORTATIONRIVER TRANSPORTATION More than More than 75 75

percentpercent of U.S. of U.S. soybean soybean exports move exports move to world ports to world ports via the Upper via the Upper Mississippi and Mississippi and Illinois River Illinois River systems.* systems.*

Barge movement onBarge movement on the Mississippi River** the Mississippi River**

Corn:Corn: 29,898 TONS 29,898 TONSSoybeans:Soybeans: 9,146 TONS 9,146 TONS

*Source: 2002 – Soybean Expansion Program, American Soybean Association **YTD (year-to-date) and calendar year total includes Miss/27, Ohio/52, and Ark/1. Source: U.S. Army Corp of Engineers (www.mvr.usace.army.mil/mvrimi/omni/webrpts/default.asp)

MARKET VALUE MARKET VALUE OF . . . OF . . .

Agricultural Agricultural Products Sold*Products Sold*

Crops* Crops* Livestock, Livestock,

Poultry and Their Poultry and Their Products*Products*

$542,209,000$542,209,000

$329,204,000$329,204,000 $213,005,000$213,005,000

Source: 11 County (IL & MO) TOTAL. 2002 Census of Agriculture, USDA-NASS* Also includes the sum of values for commodities withheld in county statistics to avoid disclosing data for

individual farms

* $1,000 or more

VALUE OF AG COMMODITIES IN VALUE OF AG COMMODITIES IN THE BI-STATE AREATHE BI-STATE AREA (millions)(millions)

Fruits, VegetablesPoultry Beef Cattle

Nursery

Soybeans

$44.0

$70.0

DairyCorn

Other

$258

$62.0$62.0

$43.0

$45.0

$9.4

$542 MillionTotal

(horses,

sheep, goats, Christ

mas trees,

organic, misc. crops)

$11.0

Hogs

$23 BILLION$23 BILLION12% of the total economic 12% of the total economic output for the bi-state areaoutput for the bi-state area

Sources: 2002 Ag Census, 1997 Economic Census, Individual Corporations, St. Louis Regional Chamber and Growth Association (RCGA)

TOTAL AGRIBUSINESS

OUPUT

10

4.7 4.32.6

0.5 0.5 0.50

2

4

6

8

10

12

14$

Bil

lio

n

OUTPUT OUTPUT BY SEGMENTBY SEGMENT

Sources: 2002 Ag Census, 1997 Economic Census, Individual Corporations, St. Louis Regional Chamber and Growth Association (RCGA)

NOT ACCOUNTED NOT ACCOUNTED FOR ON THE STUDY FOR ON THE STUDY

WERE:WERE:

Ag Service CompaniesAg Service Companies such as: such as:

AdvertisingAdvertising CommunicationsCommunications LawLaw AccountingAccounting FinancesFinances Real estateReal estate

AGRICULTURALAGRICULTURALSERVICE COMPANIES…SERVICE COMPANIES…

Employment Projected to Increase 35

Percent by 2008 Compared to

1998

We’re Ranked 12 out of the

Top 20 Fastest Growing

industries*

*Source: St. Louis Regional Chamber and Growth Association (RCGA)

AGRIBUSINESS AGRIBUSINESS MEANS JOBS FOR MEANS JOBS FOR

THE BI-STATETHE BI-STATE

330,317 JOBS330,317 JOBS

20% of workforce20% of workforce

Principal Farm OperatorsPrincipal Farm Operators 13,71313,713Hired Farm LaborHired Farm Labor 6,7346,734Total on Farm EmploymentTotal on Farm Employment 20,44720,447(RIMS II Multiplier 16.1548) (RIMS II Multiplier 16.1548)

Sources: 2002 Ag Census and U.S. Department of Commerce

Prepared by the St. Louis Agribusiness ClubPrepared by the St. Louis Agribusiness ClubOctober, 2004October, 2004

THE IMPORTANCE OF THE IMPORTANCE OF AGRIBUSINESS TO AGRIBUSINESS TO

THE BI-STATE ECONOMYTHE BI-STATE ECONOMY