July 14, 2006

 

Animal agriculture helps boost economy in US state

 

 

Counties in the southern US state of Missouri, which saw increased animal agriculture activity from 1987 to 2002, had greater economic growth and raked in more tax revenues than counties that did not, according to agricultural economist Ray Massey of the University of Missouri.

 

48 of the state's top 50 counties increased their revenue during the 15-year period, thanks to livestock production, Massey said.

 

Despite the decline in cropland area in the state, agricultural products are bringing in greater revenue, with most of the increase from livestock sales, Massey said.

 

Massey's study also compared similar counties who initially had similar levels of crop activity and no animal agriculture. In the 1990s, revenues of counties which expanded into poultry and hog production became significantly different from those which did not.

 

During the 15-year period, the market value of agricultural products in a county which did not expand into animal agriculture increased by 20 percent whereas the county which added poultry production to cropland activity had its value of production doubled. 

 

In a third county, increased hog production nearly tripled the market value of its agriculture products.

 

Tax collections in counties which had animal agriculture increased 100 percent during the 15 years, but only 50 percent in those without it.

 

However, one caveat is the negative influence of animal feeding operations on property values, leading to stiffer opposition from locals when animal farms are set up nearby.

 

Still, the negative impact of animal feeding operations on residential values can be mitigated with distance.

 

Massey stressed these factors underscore the importance of addressing site selection, odor management and neighbour relations issues before embarking on animal operations.