Boost the Economy through Local Foods

The Center for Environmental Farming Systems at North Carolina State University estimates that North Carolinians spend about $35 billion a year on food. If we spent 10 percent - $1.05 per day on local foods - approximately $3.5 billion would be available in the local economy

What would this impact be across the region?  What if we created 100 agricultural jobs in Southeastern North Carolina?  What sort of impact would that be on the economy and towards our efforts to reduce poverty?

The total economic impact of the proposed project on the region in a five year period is over $100 million. Divided by 11 counties, it is estimated that each county will gain an average of $9.2 million and 30 jobs as a result of the proposed project. Two-year shorter term outcomes of the project are proportionate to 30% of the five-year outcomes.

The table below shows the estimated annual economic impact of 100 agricultural jobs created in an 11-county region in Southeastern North Carolina as a result of the development of the Southeastern North Carolina SENC Foods Processing and Distribution Center in Burgaw over a five year period. These estimates were developed with information provided by an eleven-county input-output model created with the IMPLAN® software.  The data show the estimated annual impact on six measures of multi-county economic activity which can be attributed to 100 new farm and farm-related jobs in the area.  It was assumed that the 100 jobs were evenly distributed across ten agricultural sectors in the local economy.  All dollar figures are in third quarter 2009 dollar (developed by Dr. William Hall, Senior Economist, UNCW).

As noted in the table, the county property tax impact excludes municipal property tax collections and property tax collections earmarked to support public school operations.  Assuming that 20% of county property tax collections are earmarked for the operation of public schools, the county property tax impact would rise to $788,000.  Based on 2008-09 county property tax rates and using the taxable value of real county property as a weight, the weighted average tax rate across all eleven counties is $0.46 per $100 valuation.  In turn, the value of property required to generate $788,000 on an annual basis is almost $170 million, 0.2% of the 2008-09 total value of real property in the eleven-county area.

1. Full-time and part-time employment
2. Dividend, interest, rental, and royalty income
3. Excludes any municipal property tax collections and tax collections earmarked for public school operations