Issues In Agriculture

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1 Issues In Agriculture John Stulp, Commissioner of Agriculture November, 2010

2 Colorado Department of Agriculture CDA is charged with: Strengthening and advancing Colorado s agriculture industry; Ensuring a safe, high quality, and sustainable food supply; and Protecting consumers, the environment, and natural resources.

3 CDA Budget at a Glance Annual budget of ~$38 million. Equivalent of 284 FT staff working in seven function-driven divisions. 13% 10% 77% Cash Funded Federal Grants General Funds

4 Ag s Impact on Colorado Photo courtesy of Richard Gann

5 Ag s Impact on the State Economy Crops 28% $1,585,277,000 Livestock & Products 72% $4,061,854,000

6 Economic Activity Colorado s agriculture and food industry contributes $22 - $25 billion to the state s economy annually $5 - $6 billion in farm inputs $7 billion at first point of sale $10 - $12 billion in added value

7 Colorado Farm & Ranch Net Income

8 Jobs Colorado s agriculture & food industry supports more than 108,000 jobs in Colorado 4% of all Colorado jobs 43,000 in production; 13,500 in inputs/suppliers; and 50,400 in processing/marketing Approximately 30,000 are in non-rural Colorado Many of Colorado s counties are Ag-Dependent In more than half of Colorado s counties, 1 in every 10 jobs is tied to the ag and food industry 1 in every 3 jobs is tied to the ag and food industry in 13 of Colorado s 64 counties In Weld County alone agribusiness generates nearly 13,500 jobs

9 Ag-Dependent Counties

10 Agri-tourism Economic impact also extends to agri-tourism. Ag Census reported that nearly 700 CO farms offered agri-tourism and recreational services in 2007, generating $33 million in farm income. Wine-based tourism generates an estimated $50 million in economic activity annually.

11 Colorado s Top Ten Ag Commodities Rank Product(s) 2008 Cash Receipts (Million $) #1 Cattle & calves $3,058 #2 Dairy (milk) $534 #3 Corn for grain $518 #4 Wheat $476 #5 Produce $466 #6 Hay $390 #7 Greenhouse & nursery $277 #8 Poultry & eggs $203 #9 Hogs $176 #10 Sheep & lambs $114 $6,212 - Based on 2008 Cash Receipts for Crops & Livestock -

12 Division of Animal Industry

13 Division of Stock Inspection

14 Conservation Services

15 Inspection and Consumer Services

16 Division of Markets To Increase Marketing and Processing Opportunities for Colorado s Agricultural Industry

17 Division of Plant Industry

18

19 Major Ag Issues in Colorado

20 Agricultures Utilizes 76% of Colorado s Total Landmass Blue Private Red State Dk Green BLM Lt Green USFS White - Other

21 Agriculture Utilizes 86% of Colorado s Water

22 Irrigated Agriculture What s it worth and what s at stake? 2,600,000 irrigated acres in Colorado, nearly half in the Platte River Basin Irrigated corn is nearly 5 times more productive than dryland corn

23 Competition for Ag s Water SWSI predicts fewer irrigated acres due to population growth. Losses by basin: South Platte: 133,000 to 226,000 Rio Grande: 60,000 to 100,000 Arkansas: 23,000 to 72,000 Gunnison: 2,500 to 10,000 Colorado: 8,000 to 16,000

24 Competition for Ag s Land Population growth along the Front Range claims 90,000 acres per year. Population growth estimates by 2030: South Platte: 65% Arkansas: 55% Colorado: 99% Rio Grande: 35% Gunnison: 82%

25 Opportunities in Ag

26 Renewable energy

27 Ethanol Every gallon of ethanol produced replaces imported fossil fuels New market for corn farmer Enhance market for other grain farmers Byproduct feeds cattle

28 Ethanol direct help to rural communities Less dependent on foreign oil Rural jobs Share tax base Ag dollars have multiplier effect in community

29 Biodiesel direct help to agriculture Every gallon biodiesel produced replaces one gallon of fossil fuels Possible alternate crops for farmers Rural Jobs and Tax base

30 Biodiesel direct help to agriculture Every gallon biodiesel produced replaces one gallon of fossil fuels Possible alternate crops for farmers Rural Jobs and Tax base

31 Biomass A crop of the future

32 Wind Energy: direct help to agriculture Profitability Water Shortage Production Costs Climate Change

33 Land Development leases Tax Base Sharing Community Development Rural Jobs $2000 to $3000 per MW installed Small Wind Community Wind PROFITIBILITY direct income from wind

34 Genetics Plant Animal Molecular GPS, GIS, IT Infrastructure Water Monitoring Use Technology

35 Other Emerging Issues Environment Animal Welfare/Care Pharmaceutical Crops Local Foods Organic/Natural GMO s Population Growth Food Policy

36 Thank You

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