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Study shows animal ag is a big contributor to Indiana’s economy

A recent study funded by the Indiana Soybean Alliance shows animal agriculture is a significant contributor to Indiana’s economy.

Kendell Culp, ISA director and farmer, says animal ag has more than just a direct economic impact on local communities.

He calls it the “ag effect”.  “There’s job development,” he says.  “And then there is also the ripple effect for other businesses and industry partners that contribute to the economic vitality and success of these livestock operations located in Indiana.”

He tells Brownfield the value of the state’s animal agriculture production is on the rise.  “The United States as a whole is either declining or increasing at a much slower rate than we are here with the expansion we’ve seen in Indiana,” he says.  “For example, we’ve seen nearly a doubling in the amount of eggs produced here in Indiana and the amount of turkeys raised since 2008.”

Because production growth in Indiana is outpacing the US as a whole, the state’s livestock producers are gaining market share.  Culp says future growth of animal agriculture in Indiana will have an important impact on the state’s economy.

• Indiana’s beef production increased 7 percent compared to a decline of 0.3 percent nationally.
• The dairy sector increased nearly 23 percent compared to a 10 percent increase nationally
• The egg industry increased 34 percent compared to a 7 percent national increase
• Turkey production in Indiana increase 45 percent while the national production declined 11 percent.
• Indiana’s pork production increased 7 percent compared to a 12 percent increase nationwide.

The report also looked at hypothetical scenarios to gauge how the opening of new animal ag facilities would impact local economies.  The research found that a new hog farm with $2.0 million in direct sales can be expected to generate total sales impacts between $2.72 million to $3.15 million in Indiana’s 9 regions.  The new economic activity would also support between 24 and 28 total new jobs and an additional $500,000 to 800,000 in additional household income in each one of the areas.

Indiana currently ranks in the top five nationally in egg, turkey, and hog production.

The research was conducted by the Indiana Business Research Center, Kelley School of Business, Indiana University and funded with Indiana Soybean checkoff dollars

AUDIO: Kendell Culp, Indiana Soybean Alliance director