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<br />- " \' <br />'(1"QH..n <br /> <br />The Contribution of Colorado's Agribusiness System <br />to the State's Economy in 1997 <br /> <br />.' July 2000 <br />Department of Agricultural and Resource Economics <br /> <br /> <br />Executive Summary . <br /> <br />'''''at is the Agribusiness System? <br /> <br />Tne Agribusiness System is composed of three distinct economic <br />sectors: Farm Production, Agricultural Inpots, and Agricultural <br />Processing and Marketing. <br /> <br />Agribusiness encompasses the traditional farm production of <br />commodities such as whea~ corn, and livestock, green indusuy. <br />and horse industry with linkages to the agricultural inputs <br />necessary for their growth. Agribusiness also includes the first <br />order processing and marlreting necessary to bring the final goods <br />to Ibe consumer. Agribusiness does not include economic <br />contributions from restaurants and supermarkets. <br /> <br />What is Economic Contribution? <br /> <br />The Agribusiness System <br /> <br /> <br /> <br />COLORADO'S AGRIBUSINESS SYSTEM <br /> <br />This paper del;cribes economic contribution in four ways: employment, income. value added, and gross sales. <br /> <br />. ElfffJloymertt shows Ibe number of jobs that are located in the different industries. Farm employment production numbers reflect FfE <br />labor and include farmer owner/operator's labor only if (I) the farmer owner/operator reported agriculture as the primary source of <br />income and (2) the farmer owner/operator employed additional laborers as reported by the Colorado Department of Labor and <br />Employment. <br /> <br />Propridor /IIId Labor Income includes net income from employees and business but does not include corporate farm income, which <br />is provided in the full report. This section does not suffer from the double counting problem associated with gross sales. <br /> <br /> Employment Income Value Gross <br /> 0/0 of 0/0 of Added Sales <br />. J:eoaomic Sedor State . ($Million) State ($Million) ($Million) <br />Farm Production 38,508 1.63 $733 0.65 $816 $4,534 <br />lnpds 36,364 1.54 685 0.61 872 1,531 <br />Proc . :nglMarketing 30,267 1.28 1,046 0.93 1,611 9,803 <br />.TotaI AtrribllliDeSll 105.140 4.44 $2 464 2.19 $3,299 $15.868 <br />... .. 2,365,508 $112,699 N/A N/A <br />State Totals: <br />. , <br /> <br />. <br /> <br />Vahle added is often cited <br />as the most accurate <br />measure of economic <br />contribution. II is nct <br />income plus indirect <br />business taxes paid to <br />government entities. <br /> <br />Gross Sales is a common <br />measure of economic <br />perfonnance. However, <br />double counting as each <br />product moves from one <br />sector to the next in the <br />agribusiness system limits <br />its validity. <br /> <br />. This is the executive SWl1II13Jy of the full report that can be obtained from the Colorado State University Cooperative Extension <br />Resource Center, General Services Building, Fort Co11ins, Colorado, 80523-1172 (970-491-6198). or the Department of Agricultural <br />and Resource Economics website: httD://dare.al!SCi.colostate.edu/auestions.htmI <br />