A University of Missouri economic impact study of Premium Standard Farms (PSF) and Farmland Foods shows combined value to the state of $1.1 billion annually. The economic input-output model or IMPLAN was originally developed at the University of Minnesota in the 1980s.
“We funded this study to be able to communicate what agriculture industries contribute to Missouri’s economy,” says Rex Ricketts, director of the University of Missouri Extension Commercial Agriculture Program.
Commercial Agriculture Program economists Seanicaa Edwards, Ray Massey and Ryan Milhollin analyzed the impacts of PSF and Farmland Foods on several geographical regions. Counties with PSF and Farmland production facilities were evaluated. Then the adjacent counties were evaluated, where many of their employees lived and were expected to spend their income.
Also taken into consideration was the expectation that the two pork businesses will purchase supplies in surrounding counties.
The analysts also analyzed the financial contributions that PSF and Farmland provided to the entire state of Missouri.
The two businesses were significant contributors to the economic vitality of the state, particularly north-central Missouri. PSF is a vertically integrated firm that is involved in pork production and is headquartered in Princeton, MO. The IMPLAN model indicates that PSF’s annual revenue of $265 million had a total economic impact of $382 million on the state of Missouri, $313 million of which could be attributed to PSF’s primary production region in north-central Missouri.
The economic impact of Farmland Foods’ slaughter facility in Sullivan County was $425 million annually and a total economic impact of $601 million to the state of Missouri. For its ham processing facility in Jackson County, the economic impact was $100 million annually and $142 million to the state of Missouri.
In 2009, PSF and Farmland Foods paid more than $3.6 million in annual property taxes. Of these receipts, more than $1.9 million supported 22 school districts in eight counties where 124,750 students were educated.
The Missouri study credited the two pork businesses with sustaining more than 5,200 jobs in the state of Missouri.
The Missouri ag team concluded that PSF and Farmland Foods provide valuable resources to local communities where employees and production facilities are located.
View the complete economic impact study online at http://agebb.missouri.edu/commag/resources or by contacting the lead author, Seanicaa Edwards at (573) 882-9893 or [email protected].