INDIANAPOLIS, Ind. — There’s good news for those who would like to see ag expand in Indiana. It’s already happening.

 

A new study funded by the Indiana Soybean Alliance indicated that Hoosier agricultural growth either equaled orsurpassed growth in other states since 2008. The numbers came from the 2012 Census, the latest data available.

Corn and soybean production account for 60 percent of Hoosier ag sales, the report noted, but pointed out that animals are a heavy contributor to the state’s ag economy. “As of the 2012 Census, Indiana was home to 20,200 animal agriculture operations, combining to generate nearly $3.7 billion in sales,” the report summary said.

The state is seeing growth in every major animal category in agriculture, the study found. Conducted by the Indiana Business Research Center (IBRC) at the Kelley School of Business at Indiana University, the study looked at egg, poultry, dairy, hogs and beef production.

Between 2008 and 2015, the value of the state’s animal agriculture grew by nearly 100 percent, the report revealed.

Indiana’s egg production is now at $1 billion yearly and hog production will soon reach that threshold. Cattle and turkey receipts have nearly doubled in the past seven years, too.

The IBRC found that there are multiplier effects associated with animal ag production. Because it deals with long supply chains, poultry and egg production has a large employment multiplier. It takes a lot of people to make the necessary supplies involved in those industries, such as feed, housing, cleaning, etc. And because there are few direct employees needed in poultry and egg production, the multiplier rises.

“The employment multiplier for this industry suggests that every 100 workers involved with poultry and egg production supports an estimated 639 jobs in other industries,” the research indicated.

In other words, the ripple effect is extensive in poultry and egg production. Different regions posted different multipliers through the industries measured.

The state was divided into nine regions for the study. More populous regions tended to post higher ripple effects. In some areas, producers have to travel greater distances for supplies and equipment, lowering the multiplier.

The study, The Economic Impact of Animal Agriculture in Indiana’s Regions, also looked at projected economic growth with ag expansion in different livestock industries.

The Soybean Alliance calls this the “Ag Effect.”

One citation in the study predicted a new hog facility with $2 million in direct sales can be expected to generate a total sales impact between $2.72 million and 3.15 million, depending on the region where it would be located. In addition to the 2012 Census, data for the study was obtained from the IMPLAN economic modeling system. All figures are based on the dollar’s value in 2015. The full study can be found at FarmersDeliver.com