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<br />Tlffie: COl!lltrRI.mtiolil of Coioli'l3ldo':s Agriim:SRi1c:s:s 3Y9tem <br />to th~ St!1t(('!'g Ecol1wmy in 1997 <br /> <br />July 2000 <br />Department of Agricultural and Resource Economics <br /> <br />Co~~~ <br /> <br />Cnivcrsity <br /> <br />Executive Summary * <br /> <br />What is the Agribusiness System? <br /> <br />The Agribusiness System is composed of three distinct economic <br />sectors: Fann Production, Agricultural Inpots, and Agricultural <br />Processing and Marketing. <br /> <br />Agribusiness encompasses the traditional fann production of <br />commodities such as wheat, corn, and livestock, green industry, <br />and horse industry with linkages to the agricultural inputs <br />necessary for their growth. Agribusiness also includes the first <br />order processing and marketing necessary to bring the final goods <br />to the 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 />The Farm <br />ProductionSecta <br /> <br />COLORADO'S AGRIBUSltESS SYSTEM <br /> <br />This paper describes economic contribution in four ways: employment, income, value added, and gross sales. <br /> <br />Employment shows the number of jobs that are located in the different industries. Fann employment production numbers reflect FTE <br />labor and include fanner owner/operator's labor only if (I) the farmer owner/operator reported agriculture as the primary source of <br />income and (2) the fanner owner/operator employed additional laborers as reported by the Colorado Department of Labor and <br />Employment. <br /> <br />Proprietor and Labor Income includes net income from employees and business but does not include corporate fann 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 /> Value added is often cited <br /> Employment Income as the most accurate <br /> %of %of measure of economic <br />EtoBOmiC Sector State State contribution. It is net <br /> income plus indirect <br /> business taxes paid to <br />Farm Production 38,508 1.63 $733 0.65 $816 $4,534 government entities. <br />Inputs 36,364 1.54 685 0.61 872 1,531 Gross Sales is a common <br /> measure of economic <br />PrQl:eSSing/Madl:eting 30,267 1.28 1,046 0.93 1,611 9,803 performance. However, <br />Total double counting as each <br />ribusiness 105 140 4.44 $2,464 2.19 $3 299 $15 868 product moves from one <br />State Totals: 2,365,508 $112,699 N/A N/A sector to the next in the <br /> agribusiness system limits <br /> its validity. <br /> <br /> <br /> <br />* This is the executive summary of the full report that can be obtained from the Colorado State University Cooperative Extension <br />Resource Center, General Services Building, Fort Collins, Colorado, 80523-1172 (970-491-6198), or the Dej>artment of Agricultural <br />and Resource Economics website: httn://dare.agsci.colostate.edu/ooestions.htmi <br />