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Living from the Land

by Colin Read, May 24, 2010

Clinton County has a rich rural past. At one time, the majority of the working population were employed in agriculture or related industries. Now, with dramatically improved agricultural efficiencies, fewer workers are employed in agriculture or forestry. However, these sectors remain important and significant parts of our local economy. They also provide the community with affordable fresh produce, a more diversified economy, and a source of tax revenue.

In 2008, 1,309 individuals in Clinton County were employed directly by agriculture and forestry-related industries:

NAICS
Sector		 Description Employment Employee
Compensation		 Average
Salaries
12 Dairy cattle and milk production 682 $7,202,910 $10,558
19 Support activities for agriculture and forestry 127 $892,382 $7,009
16 Commercial logging 75 $856,498 $11,396
2 Grain farming 74 $180,722 $2,457
3 Vegetable and melon farming 64 $2,713,370 $42,300
10 All other crop farming 56 $1,413,256 $25,257
18 Commercial hunting and trapping 53 $274,783 $5,183
4 Fruit farming 40 $1,644,939 $41,408
11 Cattle ranching and farming 32 $401,288 $12,474
97 Engineered wood member and truss manufacturing 25 $892,557 $35,106
102 Prefabricated wood building manufacturing 20 $740,746 $36,432
96 Veneer and plywood manufacturing 14 $406,904 $28,577
94 Other leather and allied product manufacturing 13 $603,710 $45,679
1 Oilseed farming 11 $8,725 $810
14 Animal production, except cattle and poultry and eggs 6 $55,437 $8,902
103 All other miscellaneous wood product manufacturing 6 $195,433 $33,720
13 Poultry and egg production 4 $313,502 $83,231
6 Greenhouse, nursery, and floriculture production 3 $249,852 $82,279
95 Sawmills and wood preservation 3 $82,494 $29,353
  Total Activity from Farming and Forestry 1,309 $19,129,506 $14,615
  Total from all activities in Clinton County 40,538 $1,710,029,623 $42,183
  Percent of all activity in Clinton County 3.2% 1.1%  


Of 40,538 individuals employed in Clinton County in 2008, 3.2% were in agriculture and forestry related industries. They received compensation of $19.130 million, or 1.1% of the county-wide labor bill. This lower share of compensation than employment is explained by relatively low wages in the agricultural sector.

However, these sectors generate significant proprietor income. Because most farms in Clinton County are small family owned businesses, the actual salaries paid are hidden in the profits, or proprietor income, accruing to the families that own the farms. All tolled, harvest-related industries accounted for $133.26 million in output in 2008, or 2.3% of the value of production in Clinton County. By contrast, these 19 sectors generate 6.9% of all proprietor income in Clinton County, valued at $8.788 million in 2008. Their share of profits is three times larger than their share of output in the economy:

NAICS
Sector		 Description Output Proprietor
Income
12 Dairy cattle and milk production $66,672,876 $275,733
19 Support activities for agriculture and forestry $3,371,778 $2,413,028
16 Commercial logging $14,052,319 $1,299,957
2 Grain farming $4,136,337 $402,394
3 Vegetable and melon farming $10,703,623 $2,287,146
10 All other crop farming $7,899,436 $1,047,260
18 Commercial hunting and trapping $5,561,255 $257,944
4 Fruit farming $3,241,480 $485,598
11 Cattle ranching and farming $2,826,762 $16,320
97 Engineered wood member and truss manufacturing $2,805,864 $0
102 Prefabricated wood building manufacturing $2,738,197 $0
96 Veneer and plywood manufacturing $2,352,263 $0
94 Other leather and allied product manufacturing $2,191,902 $0
1 Oilseed farming $726,566 $87,996
14 Animal production, except cattle and poultry and eggs $263,422 -$2,250
103 All other miscellaneous wood product manufacturing $856,635 $0
13 Poultry and egg production $1,922,687 $137,652
6 Greenhouse, nursery, and floriculture production $326,393 $78,948
95 Sawmills and wood preservation $610,305 $0
  Total Activity from Farming and Forestry $133,260,098 $8,787,726
  Total from all activities in Clinton County $5,727,367,032 $127,076,748
  Percent of all activity in Clinton County 2.3% 6.9%


These land-related industries also generated significant additional employment in Clinton County. Those industries that heavily rely on local firms to supply intermediate factors of production will, in turn, generate additional jobs. Economists call these secondary jobs "indirect" because they are a byproduct of other primary sectors. The total number of such direct and indirect jobs can be measured by calculating what economists call a Type I multiplier. For instance, if each job in one of these top ten primary jobs generates an additional job in a secondary sector, the Type I multiplier will be 2.0. in other words, two jobs are created from each job in the primary sector.

These "induced" jobs, when added to the direct and indirect jobs, yields a Type II multiplier that tells us how many jobs in total are supported by one job in a primary industry. On average, each agricultural job generates another .52 other jobs in Clinton County. A county able to provide food staples for its residents can also keep income circulating within its boundaries. More jobs yet are then created by direct and indirect jobs.

NAICS
Sector		 Description Employment SAM Employment Multipliers Direct, Indirect,
and Induced Employment
12 Dairy cattle and milk production 682 1.413357 964
19 Support activities for agriculture and forestry 127 1.184535 151
16 Commercial logging 75 1.946613 146
2 Grain farming 74 1.264755 93
3 Vegetable and melon farming 64 2.385427 153
10 All other crop farming 56 2.033914 114
18 Commercial hunting and trapping 53 1.469715 78
4 Fruit farming 40 1.880583 75
11 Cattle ranching and farming 32 1.810636 58
97 Engineered wood member and truss manufacturing 25 1.417010 36
102 Prefabricated wood building manufacturing 20 1.498176 30
96 Veneer and plywood manufacturing 14 1.675966 24
94 Other leather and allied product manufacturing 13 1.614760 21
1 Oilseed farming 11 1.340270 14
14 Animal production, except cattle and poultry and eggs 6 1.203232 7
103 All other miscellaneous wood product manufacturing 6 1.643849 10
13 Poultry and egg production 4 2.854018 11
6 Greenhouse, nursery, and floriculture production 3 1.877804 6
95 Sawmills and wood preservation 3 1.936243 5
  Total Activity from Farming and Forestry 1,309   1,997
  Total from all activities in Clinton County 40,538   40,538
  Percent of all activity in Clinton County 3.2%   4.9%


Once these "multiplier" jobs are taken into account, almost 5% of Clinton County employment flows from the land. Meanwhile, the share of employment in agricultural jobs is declining as farms operate at greater efficiency. These jobs are replaced by managerial and professional jobs in Clinton County.



While agricultural efficiencies have meant that fewer people are employed on farms of ever-increasing size, their contribution to the local economy, in both job creation and self sufficiency, remains significant.

 

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