The Economic and Fiscal Impacts of Production Agriculture in Cumberland County

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The Economic and Fiscal Impacts of Production
Agriculture in Cumberland County

• Martin Shields
• Assistant Professor

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Outline

• An Overview of Recent Trends in Production
  Agriculture in PA and Cumberland County
• An Examination of the Industrys Economic and
  Fiscal Impacts in the County

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Pennsylvania
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Whats happening with the value of agricultural
production in PA?
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Production agricultures share of GSP remains
near 2
PA GSP 383 Billion in 1999
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Since 1970, the number of farms in PA has
declined 20
Source PDA and Penn State Cooperative Extension
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While the amount of land farmed in PA has
declined 25
Source PDA and Penn State Cooperative Extension
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Cumberland County
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Cumberland agriculture is primarily dairy and
livestock
Percent of Receipts 2000
Source PDA and Penn State Cooperative Extension
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Value of county agricultural sales
Source PDA and Penn State Cooperative Extension
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In Cumberland County, the number of farms has
remained relatively unchanged since 1981
Source PDA and Penn State Cooperative Extension
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but the number of acres declined 13 between
1982 and 1997
Source US Census of Agriculture and Penn State
Cooperative Extension
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Some reasons why

• Increased Productivity
• In 1990, a PA dairy cow produced slightly less
  than 15,000 pounds
• In 2000, output per cow was nearly 18,000
  poundsa 20 increase
• and slow growing demand
• Since 1990, the US population has grown by 12.8,
  while PA grew by 3.2

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The role of agriculture in the county economy
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Production agriculture employs 1,671 workers in
the County
2000 Employment 159,932
Source IMPLAN and Penn State Cooperative
Extension
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The role of agriculture in the local economy

• An economy is a network of individual businesses
  and households
• Because of local linkages what happens in one
  sector impacts the entire economy

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The role of agriculture in the local economy

• The economic multiplier is a central concept
• Direct effects What is the role of the industry
  itself?
• Indirect effects What are the ripple effects of
  the industry?

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And agriculture generates spin-off jobs and income

• The sector provides 685 additional jobs through
  the multiplier effect
• Through direct and indirect effects, agriculture
  provides more than 65.2 million in local
  value-added production (1 percent of county
  economy)

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Agricultures role in the local tax base
Cumberland County Assessed Values 2001
Source State Tax Equalization Board
(http//www.steb.state.pa.us/)