July 2009 Articles

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Farm Counties with Poultry Production significantly outperform

FARM COUNTIES WITH POULTRY PRODUCTION SIGNIFICANTLY OUTPERFORM, IN ECONOMIC TERMS, THOSE WITHOUT POULTRY, ACCORDING TO A RECENT COMPARATIVE STUDY
Local Zoning Restrictions against Poultry Are Hurting Rural Economies & Local Tax Revenues, According to the PSA-Member and University of Georgia Poultry Science Professor Who Authored the Study
SAVOY, IL (March 9, 2009) – A recent comparative study of farm incomes in southern Georgia concludes that counties that have poultry production facilities have, on average, total net farm income of almost three times that of comparable but non-poultry-producing counties. Poultry counties are also more economically efficient, with a net income per acre more than double that of non-poultry counties, according to the study.
The study, A Comparison of Farm Incomes for Poultry and Non-Poultry Producing Counties in South Georgia, was issued by The University of Georgia Cooperative Extension. Its author, Dan L. Cunningham, Ph.D., is a professor and extension specialist in the University’s Department of Poultry Science; he is also a member of The Poultry Science Association (PSA). According to Dr. Cunningham, while the study focused on counties in southern Georgia, similar results would likely be found in other poultry-producing areas around the country. “I believe that a parallel study on the relative economic contributions of poultry vs. non-poultry counties in other areas of the country would find that the general conclusions of our work hold true. They would likely demonstrate that poultry production has a strikingly powerful effect in terms of economic impact on these typically smaller and more rural economies,” said Dr. Cunningham. Economic Impact - The study notes that the decision to locate an integrated poultry production complex in a given county brings with it average initial investments of more than $180 million in hard assets, such as processing plants, feed mills, hatcheries and production houses, along with more than $50 million annually in payroll and labor and contract payments. While the study notes that a new poultry complex will add some costs to the community, such as additional demands on roads, utilities, schools, etc., these will usually be more than offset by new tax revenues and spending that flow from the poultry and poultry-related facilities. The study notes that “Georgia has more than 20 poultry production complexes located across the state and all are operating as an economic benefit to their communities.” Farmers selecting to assign some of their acreage to poultry production also benefit from the enhanced economic product- ivity generated by those acres. According to the study, net farm incomes, on both an income-per-farm and an income-per- acre-of-farm basis, are “significantly greater for farms with poultry as part of their agricultural diversification.” Need for Wider Understanding of Benefits of Poultry Investments “I believe that the increase in zoning restrictions against poultry that we’ve seen in the last few years runs counter to the economic well-being of the counties where these restrictions are being put in place. It’s therefore incumbent on us – poultry scientists, PSA members and everyone in the poultry industry – to do a better job of helping community members understand the economic value of poultry production to their communit- ies,” said Dr. Cunningham. Noted PSA President, Dr. Mike Lacy: “Educating the public about the economic benefits assoc- iated with poultry production is part of the broader mandate of The Poultry Science Association. Over the last 50 years, fewer and fewer people grow up on or near farms or farming communities. So it is not surprising that there is often little understanding of not only the production process itself, but of the positive economic impact that agricultural businesses, and poultry businesses in particular, have. Poultry economists like Dr. Cunningham are playing an important role in getting this message out to a wider audience.” A copy of Dr. Cunningham’s study is available for download at no charge from http://pubs.caes.uga.edu/caespubs/pubcd/C897.htm.