Economic development

1
Economic development
Mitch Peele NC Farm Bureau Presentation to
Leadership NC December 4, 2008

• North Carolina Agricultures Role

2
Overview

• Explanation of NC agriculture
• Understanding of entire agribusiness
• Description of total economic impact
• Identification of challenges facing industry
• Opportunities for the future

3
NC Agriculture - Yesteryear

• Some small farms, many moderate size , few large
• King Tobacco
• 1 billion
• Large dairy industry
• gt 5,000
• Cotton was big
• gt 1 million acres
• Modest animal ag industry
• Pre-contracting
• Good for the time, but too few baskets

4
NC Agriculture - Modern Day

• Nations third most agricultural diverse state
• Effect of climates, soils, topography
• Comm. Grahams role
• Industry and individual farms diversity
• Different size of operations
• 55 small, 25 mid level, 20 large
• Low value and high value crops

5
List of Todays Top Crops

• Broilers 2.4 B
• Hogs 1.9 B
• Greenhouse/Nursery 900 M
• Forestry 900 M
• Tobacco 590 M
• Turkeys 515 M
• Eggs 330 M
• Corn 310 M
• Soybean 274 M
• Cotton 250 M

• Cattle 225 M
• Dairy 190 M
• Sweet potatoes 140 M
• Christmas Trees 125 M
• Wheat 110 M
• Peanuts 57 M
• Blueberries 31 M
• Cukes 25 M
• Tomatoes 24 M

6
Understanding NC Agribusiness

• Production
• Transportation
• Processing
• Marketing
• Retail
• Financing
• Inputs
• Services, including research
• Food services

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Total Economic Impact

• 71 Billion! (19)
• Ten years ago - 48 B and 22.5
• States largest industry
• 650,000 employees (16)
• Forestry Industies
• Farming 900 M, mfg 6.6 B 7.5 B
• Fiber Industries
• Wholesale 800 M, mfg 2.9 B, retail 2.7 B
  6.4 B
• Ag/Food Industries
• Farming 13.4 B, mfg 23.5 B, wholesale 5.4 B,
  retail 14.6 B 56.9 B

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Charles Dickens said it best.
It was the best of times, it was the worst of
times
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Challenges Facing Agriculture

• Environmental regulations
• Labor
• Energy
• Input costs
• Commodity prices
• Competition for land and resources
• Apathetic and uninformed public

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Opportunities for the Future

• Specialty crops offer much promise
• Buy local
• Food safety
• Focus on nutrition
• Ornamental markets track development
• Tobacco still big
• Dairy stabilization and growth initiative
• Exports

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Opportunities Continued

• Farmland preservation initiatives
• SERPPAS
• Young farmers entering business (specialty crops,
  animal ag)
• Top universities and research (Kannapolis Campus)
• Importance of Biotech industry
• RENEWABLE ENERGY
• Crops
• Waste and other feedstocks
• Chance for ownership
• NC Biofuels Center
• FEEP

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Farmers are Partnering for the Future

• USDA Rural Development
• Grants, loan guarantees, low interest loans for
  farmers, small businesses, rural families to
  create economic development
• NC Rural Economic Development Center
• Grants to spur ED, local govts, communities, etc.
  in providing infrastructure
• Agribusiness Advancement Consortium
• NC Dept of Ag
• NC Dept of Commerce
• NC Cooperative Extension Service
• Local Eonomic Development Offices

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In Closing

• Agriculture remains NCs No. 1 industry
• Agriculture has changed, but has adapted
• Tobacco is still strong
• Specialty crops will play more important role
• Animal agriculture is top producer
• Renewable energy will offer tremendous
  opportunities for NC
• NCs universities will play important role in
  helping agriculture meet tomorrows challenges