2015 ILLINOIS AGRICULTURE ECONOMIC CONTRIBUTION STUDY. Illinois Farm Bureau Commodities Conference

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2015 ILLINOIS AGRICULTURE ECONOMIC CONTRIBUTION STUDY Illinois Farm Bureau Commodities Conference 07.29.2015

ILLINOIS AGRICULTURE Illinois is currently ranked the #2 state in the nation for: Corn for grain Soybeans for beans Value of Sales by Commodity Group ($1000): grains, oilseeds, dry beans, dry peas In the top 5 for: Market Value of Agriculture Products Sold: Crops, including nursery and greenhouse Hogs and Pigs Sold Hogs and Pigs Inventory

2012 2007 2002 1997 Number of Illinois Farms 75,087 76,860 73,027 79,112 Average Illinois Farm Size (acres) 359 348 374 350 Production (million bushels) Corn for Grain 1,253.3 2,248.7 1,418.6 1,372.4 Oats for Grain 1.5 1.5 2.8 5.0 Soybeans 371.3 353.7 439.0 417.9 Wheat 40.5 47.3 27.9 54.0 Market Value (per farm) Land and Buildings ($1,000) $2,261.8 $1,321.1 $913.3 $736.3 Machinery and Equipment ($1,000) $203.2 $136.6 $102.2 $86.7 Farm Products Sold ($1,000) $228.9 $173.4 $105.1 $109.1 Livestock Inventory (thous head) Cattle and Calves 1,127.6 1,231.1 1,359.0 1,512.9 Beef Cows 344.0 429.1 422.7 474.0 Milk Cows 98.8 99.7 114.1 127.5 Hogs and Pigs 4,630.8 4,298.7 4,094.7 4,677.2 Laying Chickens 4,327.3 5,285.6 3,290.3 3,540.1 Broilers 115.9 108.9 26.5 53.3 Turkeys 739.7 846.0 959.7 1,089.8 Livestock Sold Cattle and Calves Sold (thous head) 835.9 894.6 917.3 1,007.8 Hogs and Pigs Sold (thous head) 13,121.4 13,196.6 11,178.7 9,390.3

ILLINOIS AGRICULTURE 97% of Illinois farms are family owned.

ILLINOIS AGRICULTURE Illinois Net Farm Income has increased over time Value of Crop and Livestock have tracked together since at least 2007 Most of Illinois Value of Production is from crops

ILLINOIS AGRICULTURE Illinois Agriculture s share of Gross State Product has been approximately 3% since 2008, up slightly from the early 2000s.

ILLINOIS AGRICULTURE

ILLINOIS AGRICULTURE Illinois sales/farm have increased 118% since 2002 Share of sales has continued to shift toward crops since 2002: 76.5% in 2002 versus 82.3% in 2012

BACKGROUND Discussions for Illinois project began in early 2014 Work commenced in late 2014 Methodology patterned after: Iowa 2005 by Iowa State University 2009 and 2014 by DIS South Dakota 2014 by DIS

BACKGROUND Illinois analysis utilized the following data/software packages IMPLAN Modeling System 2012 data package for counties, congressional districts, and State of Illinois 2012 USDA Census of Agriculture Statistical Analysis System (SAS) Microsoft Excel 2013

BRIEF METHODOLOGY Aggregated Agriculture & Other Sector Analysis Crops Oilseed Farming, Grain Farming, Vegetable and Melon Farming, Greenhouse, Nursery, and Floriculture Production, Forest Nurseries, Forest Products, and Timber Tracts, Logging, Flour Milling and Malt Manufacturing, Wet Corn Milling, Soybean and Other Oilseed Processing, and Fruit and Vegetable Canning, Pickling, and Drying. Livestock Cattle Ranching and Farming, Dairy Cattle and Milk Production, Poultry and Egg Production, Animal Production (Except Cattle and Poultry and Eggs (Hogs)), Fishing, Hunting and Trapping, Fluid Milk and Butter Manufacturing, Cheese Manufacturing, Animal (Except Poultry) Slaughtering, Rendering, and Processing, and Poultry Processing

BRIEF METHODOLOGY Aggregated Agriculture & Other Sector Analysis Other Agriculture Support Activities for Agriculture and Forestry, Other Animal Food Manufacturing, Fats and Oils Refining and Blending, Breakfast Cereal Manufacturing, Frozen Food Manufacturing, Fertilizer Manufacturing, Pesticide and Other Ag Chemical Manufacturing, Farm Machinery and Equipment Manufacturing, and Veterinary Services Non-Agricultural Sectors Construction, Entertainment, Financial, Government, Households, Information, Manufacturing, Mining, Remainder (all IMPLAN sectors not included elsewhere), Retail, Services, Transportation, Utilities, and Wholesale

BRIEF METHODOLOGY Detailed Agriculture & Other Sector Analysis Oilseeds Grains Other Crops Cattle Dairy Poultry Hogs Other Livestock Ag Support Primary Food Processing Crops Primary Food Processing Dairy Primary Food Processing Meat Animal and Pet Foods Other Food Processing Ag Chemical and Fertilizer Farm Machinery Non-Agriculture

STATE HIGHLIGHTS Total Agriculture accounts for $120.9 billion in output, or 9.6% of Illinois total

STATE HIGHLIGHTS Total Agriculture accounts for nearly 433,000 jobs, or one in every seventeen Illinois jobs

STATE HIGHLIGHTS Total Agriculture contributes $48.4 billion or 6.7 percent of the state s value-added

STATE HIGHLIGHTS Total Agriculture contributes $28.8 billion or 4.6 percent of the state s household income

STATE HIGHLIGHTS, DETAILED AGRICULTURE

STATE HIGHLIGHTS, DETAILED AGRICULTURE

STATE HIGHLIGHTS, DETAILED AGRICULTURE

STATE HIGHLIGHTS, DETAILED AGRICULTURE

STATE HIGHLIGHTS, DETAILED AGRICULTURE

COUNTY HIGHLIGHTS 24 of Illinois counties derive at least one third of their total output from agriculture and agriculture-related industries. 12 of Illinois counties derive at least one fifth of their total jobs from agriculture and agriculture-related industries.

COUNTY HIGHLIGHTS, AGGREGATED AGRICULTURE

COUNTY HIGHLIGHTS, AGGREGATED AGRICULTURE

COUNTY HIGHLIGHTS, AGGREGATED AGRICULTURE

CONGRESSIONAL DISTRICT HIGHLIGHTS 6 of Illinois congressional districts derive at least 15% of their total output from agriculture and agriculture-related industries. 5 of Illinois congressional districts derive at least 10% of their total jobs from agriculture and agriculture-related industries. 6 of Illinois congressional districts derive at least 10% of their total value-added from agriculture and agriculture-related industries. 5 of Illinois congressional districts derive at least 5% of their household income from agriculture and agriculture-related industries.

CONGRESSIONAL DISTRICT HIGHLIGHTS, AGGREGATED AGRICULTURE

CONGRESSIONAL DISTRICT HIGHLIGHTS, AGGREGATED AGRICULTURE

CONGRESSIONAL DISTRICT HIGHLIGHTS, AGGREGATED AGRICULTURE

MULTIPLIERS Multipliers quantify the additional economic activity directly generated from a given industry. In Illinois, for every million direct dollars generated by the Total Agriculture industry the following additional activity is estimated in other industries: $904K in Output 6.9 jobs In Illinois, for every million direct dollars generated by the Livestock industry the following additional activity is estimated in other industries: $804K in Output 6.7 jobs

MULTIPLIERS In Illinois, for every million direct dollars generated by the Crops industry the following additional activity is estimated in other industries: $1.096M in Output 7.3 jobs In Illinois, for every million direct dollars generated by the Other Agriculture industry the following additional activity is estimated in other industries: $811K in Output 6.6 jobs

THREE-STATE COMPARISON Similar studies have now been completed in three Midwestern states Illinois Iowa South Dakota Output $120.9 billion $112.2 billion $25.6 billion % of total output 9.6% 33.3% 30.5% Jobs 432,831 418,771 115,651 % of Jobs 5.9% 21.0% 20.2% Value-Added $48.4 billion $39.8 billion $8.9 billion % of VA 6.7% 24.4% 21.3% Household Income $28.8 billion $24.3 billion $7.7 billion % of HH 4.6% 17.0% 19.0%

CONCLUSIONS Agriculture is a critical component of Illinois overall economic well-being Illinois agriculture is connected to a large set of integrated industries Farm production in Illinois continues to change Illinois has an agricultural resource base that grows with the overall economy Illinois agricultural base has room for continued growth