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Florida Agriculture and The Vegetable Industry
by
Tom Stevens, Alan Hodges and David Mulkey
University of Florida, Institute of Food and Agricultural Sciences,
Food and Resource Economics Department
February 13, 2003
Published by the
International Agricultural Trade and Policy Center
As Policy Brief TC_03-2, February 2003.
http://www.fred.ifas.ufl.edu/iatpc/
Abstract
Florida ranked ninth in the U.S. in agricultural receipts for the year 2000, and ranked first or
second in receipts for 12 of the nation's top 25 agricultural commodities. Ten of these twelve
leading agricultural commodities were fresh fruits or vegetables, and combined, they
represented over 45 percent of the state's agricultural receipts in 2000. Despite Florida's
preeminent standing as a producer of fresh fruits and vegetables, it's future leadership in this
industry is less clear. In real terms, Florida's annual agricultural receipts have declined from
$7.41 billion in 1992, to $6.42 billion in 2001. In 2000, receipts fell by over $521 million, the
sharpest one-year drop since 1990. The overall trend in fresh vegetable receipts for the State
has been downward since 1992 and receipts for fresh tomatoes, the state's most important fresh
vegetable, fell by almost half over the same period. With nearly 90 percent of its receipts from
fresh vegetables coming from out-of-state sales, it is estimated that the vegetable industry
generated a total economic output impact of $3.14 billion for the state in 2001. Changes in
agricultural policy or market conditions can and will continue to have a significant impact on
Florida's economy. Given that the bulk of many fresh vegetables are produced within a
handful of counties within the state, even minor changes in policy or market prices can result in
dramatic consequences for local producers and the economies of individual counties.
Keywords: Florida, agriculture, vegetable, fruit, tomato, industry, economic, performance
Florida Agriculture and The Vegetable Industry
by
Tom Stevens, Alan Hodges and David Mulkey
University of Florida, Institute of Food and Agricultural Sciences,
Food and Resource Economics Department
February 13, 2003
Introduction
The purpose of this report is to describe the Florida fresh vegetable industry and
estimate its economic importance to the state of Florida and the United States. Florida's
importance and place in U.S. agriculture is briefly described and compared. The discussion
then focuses on the composition and performance of the vegetable industry in Florida during
the ten years between 1992 and 2001, and in particular on the production of fresh tomatoes.
Statistics are also presented on the geographic distribution of vegetable production within the
state, which illustrates its high degree of regional concentration. Finally, the methods and
results of an economic impact analysis on the industry are presented and explained.
Florida's Position in U.S. Agriculture
Thanks to it's southern latitude, abundant rainfall, and variety of soil types, the state of
Florida has an important and highly diversified agricultural sector. Florida's agricultural output
is higher-valued on a per-acre basis when compared to the rest of the United States. With less
than 1.1 percent (10.2 million acres) of the United States' farmland acreage, Florida generated
more than $6.4 billion, or 3.5 percent, of the nation's total agricultural receipts in 2001 (USDA-
NASS). This is primarily due to the greater proportion of farmland in the state that is
dedicated to higher-value fruit, vegetable and greenhouse/nursery crops (Figure 1). At the
same time Florida has comparably fewer farms and acres devoted to more land-extensive forms
of agriculture like livestock and feed-grain production. While over half of all agricultural
receipts in the U.S. came from sales of livestock and livestock products in 2001, less than 23
percent of Florida's agricultural receipts came from this type of agriculture. Conversely, nearly
two-thirds of Florida's agricultural receipts in 2001 were from the sale of fruit, vegetable,
greenhouse and nursery products, while these three commodity groups only made up one-fifth
of total U.S. agricultural receipts that year.
According to the USDA, Florida ranked ninth in the country in terms of overall
agricultural receipts for the year 2000. At the same time, it ranked first or second in receipts
for 12 of the nation's top 25 agricultural commodities (Table 1). Ten of these twelve leading
agricultural commodities were fresh fruits or vegetables, and combined, they represented over
45 percent of the state's agricultural receipts in 2000. Of course, Florida is well known for
being the nation's leading producer of oranges and grapefruit. It is less well known for leading
the country in sales of fresh tomatoes, bell peppers, snap beans and sweet corn (Table 1).
Florida ranks second in the nation in receipts for fresh strawberries, cucumbers, eggplant and
endive. For many of these commodities, Florida is the nation's sole domestic supplier during
the fall, winter and/or spring seasons of the year. Clearly, Florida is an important and vital
component in the nation's food supply system.
Figure 1. Distribution of Florida and U.S. Agricultural Receipts, 2001 1.
Florida
United
States
Food grains
0.0%
Feed crops
0.2%
Cotton
0.6%
Tobacco
0.3%
\Oil crops
0.9%
Fruits & nuts
5.8%
Vegetables,
melons, berries
7.6%
Tobacco
0.9%
Cotton
2.4%
Source: USDA-ERS, U.S and State Farm Income Data, www.ers.usda.gov/data/farmincome/finfidmu.htm
. Berries, including strawberries, are typically classified by the USDA in the fruit and nuts category.
Table 1. Florida's national rank and market share in receipts for selected top 25
agricultural commodities in the U.S. in the year 2000.
U.S. Receipts Percent of
Commodity(ies) Rank million, 2001 $ U.S. market
All Comnlodltles ie 0 7,116 3 0
All Crops 2 5,705 5.9%
Fruits andi Nuts 'i_ 1.963 15 1o
Greenhouse/Nursery 2 1,585 11.9%
Vegetables 2 1,490 9.2%
Oranges 1 1,430 68.1%
Tomatoes, fresh 1 519 27.8%
Sugar Cane 1 452 48.4%
Grapefruit 1 320 76.3%
Snap Beans 1 257 48.6%
Bell Pepper. fIesh 1 250 4-i 20
Strawberries 2 172 17.2%
S\\eet Corn. fish 1 105 21 o,2
Cucumbers, fresh 2 75 33.8%
Potatoes, winter 2 36 42.1%
Cabbage fresh 5 20 5.8%
Euuplant. fish 2 1420 lo
Escarole/Endive 2 14 22.7%
Watermelon 6 10 4.2%
Romaine Lettuce 4 3 1.0%
Source: USDA-NASS, Statistical Highlights, 2001-2002. www.usda.gov/nass/pubs/stathigh/2002/econindex.htm
1. With the exception of potatoes, Florida's rank is based on year-round production. The
ranking is higher when receipts are evaluated seasonally, i.e., Florida is the sole domestic
supplier of winter-season strawberries.
2. Berries are counted as fruit and nuts in this table
Recent Economic Performance of Florida Agriculture
Florida agriculture has only seen sporadic growth during the ten years between 1992
and 2001. When adjusted for inflation and expressed in 2001 dollars, Florida's annual
agricultural receipts declined from $7.41 billion in 1992 to $6.42 billion in 2001 (Figures 2 and
3). After loosing 8.5 percent in value between 1992 and 1995, receipts for the State recovered
to $7.51 billion by 1998, but by 2001 they had fallen to their lowest level since 1974. Florida's
farm receipts declined by over $521 million in 2001, the sharpest one-year decline since 1990.
This downturn has not been evenly distributed among the different commodity groups in the
State. As can be seen in Figure 3, almost all of the reduction in agricultural receipts since 1998
has occurred in the fresh fruit and vegetable subsectors. Florida fruit production is dominated
by citrus products. During the 2000-01 season, the citrus industry experienced significant
declines in both production and prices. This accounted for much of the decline in Florida farm
receipts that year.
There have been significant trends in Florida's receipts from fresh vegetable production
in the last ten years (Figures 2 and 3). From 1992 to 1995, vegetable receipts declined
dramatically, falling from $2.20 to $1.59 billion in real terms, or about 28 percent. Although
the industry had recovered about 10 percent of these losses by 1998, receipts resumed their
earlier decline, so that by 2001 industry sales were just above $1.58 billion, which was nearly
14 percent below their 1998 levels.
On the bright side, the greenhouse and nursery industry in Florida has seen increases in
constant dollar receipts during eight of the 10 years between 1992 and 2001. This sector grew
by more than 24 percent during this period. As can be seen in Figure 2, revenues for the
nursery and greenhouse industry were approximately $1.52 billion in 2001, down only slightly
from $1.53 billion the year before.
Receipts to Florida's livestock industry have remained relatively stable over the 10 year
period. Since 1992, livestock receipts have only fallen about three percent, to $1.46 billion, by
2001. In 1993, receipts from livestock sales rose to 1.52 billion, but then fell to $1.38 billion
in 1995 (Figure 2).
The category of "All other crops" for Florida includes sugarcane, peanuts, tobacco, feed
crops, cotton and other minor crops. Receipts for this category of crops declined by
Figure 2. Florida Agricultural Receipts by Commodity Group, 1992 2001.
8,000 7 7,506
000 7,411 7,138 6,965 6,781 7,016 7,109 7,013 6,938
783 804 792 745 767 669 689
6,000
1,644 1,588 1,965
m 4,000 1,776 1,785 1,660 1,6
2, 2,20 2 2,042 1,716 1,592 1,607 1,715 1,835 1,611 1,583
2,000
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Livestock & Products 0 Vegs, melons & berries 0 Fruits
Greenhouse/Nursery 0 All Other Crops
Source. USDA-ERS, U.S and State Farm Income Data, www.ers.usda.gov/data/farmincome/finfidmu.htm
Figure 3. Florida Agricultural Receipts for Vegetable, Fruit and Greenhouse Crops, 1992
-2001.
2,250
2,000
1,000
750
500
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Vegs, melons & berries -Fruits Greenhouse/Nursery
Source. USDA-ERS, U.S and State Farm Income Data, www.ers.usda.gov/data/farmincome/finfidmu.htm
about 17 percent in real terms, between 1992 and 2001 (Figures 2 and 3). Much of that
reduction occurred in the year 2000 when receipts for this category dropped by $98 million or
nearly 13 percent.
Florida's Vegetable Industry
A detailed breakout of Florida's vegetable industry receipts by commodity is provided
in Figures 4 and 5. As previously mentioned, the overall trend for fresh vegetable receipts in
the State has been downward, particularly between 1992 and 1995. During this period, the U.S.
fresh tomato market saw increased imports from Mexico following the implementation of the
North American Free Trade Agreement (NAFTA). Although many of the other important
vegetables produced in Florida had declining revenues during these years, tomatoes fared the
worst. By volume, tomato imports represented on average, 29 percent of national utilization
between 1992 and 2001. This compared to imports' 22 percent share of U.S. utilization between
1982 and 1991. Between 1992 and 1995, receipts from Florida tomato sales dropped by over
47 percent, resulting in a cumulative decline in receipts of $721 million in those three years.
Tomato sales changed from comprising nearly 45 percent of Florida's fresh vegetable, melon
and berry receipts in 1992, to just over 29 percent in 1995. Although, a modest recovery in
vegetable and tomato revenues occurred between 1995 and 1998, these gains have since
evaporated as 2001 receipts declined to their lowest levels of the 10 year period.
Not all of Florida's vegetable producers experienced diminishing real revenues during
the 1990s. Sweet corn and snap beans generated $121 and $147 million in revenues
respectively in 2001 (Figure 4). These values represent a 39 percent increase in receipts for
sweet corn and a nearly 73 percent increase for snap beans compared to 1992. These increases,
however, have not been nearly sufficient to offset the losses in tomatoes and other vegetables
experiencing declining receipts. Since many of Florida vegetable producers specialize in one
or two commodities, numerous operations have left the industry. According to the Census of
Agriculture, the number of vegetable farms in the State fell from 1,988 in 1992, to 1,500 in
1997. This represents a loss of nearly 25 percent of Florida's vegetable farms in just five years.
Figure 4. Florida Receipts for Fresh Vegetables by Commodity, 1992 -2001.
2,200
2,000
1,800
11 Potatoes
00 105 0 Corn, sweet fresh
1,400 121 110 111 11
S8 .. 0 Beans, snap, fresh
1,200 250 1 0 Peppers, green, fresh
S1,000 5. Tomatoes, fresh
1,000 -j--------------
0 Other vegs/melons/berries
S800 -
600-
400
400 711 656 641 5 597 613 563 539 518
200
0
OI ON ON ON ON O O 0 0C
Source: USDA-ERS U.S. and State farm income data, www.ers.usda.gov/data/farmincome/finfidmu.htm
Figure 5. Florida Receipts for Fresh Vegetables by Commodity, 1992 -2001, 2001 dollars
1,000
800 W Other vegs/melons/berries
-4--Tomatoes, fresh
600 --Peppers, green, fresh
o 600
6o 0 --Beans, snap, fresh
S-A- Corn, sweet fresh
S 400 --Potatoes
200
0
e A n e n oD data, wwata0
0\ 0\0\ o0\ 0\0 0/ 0 0
0\0\0\ O0\ 0\ 0% 0% 0 0
Source: USDA-ERS U.S. and State farm income data, www.ers.usda.gov/data/farmincome/finfidmu.htm
The trend in receipts for the "all other vegetables" category was also significantly down
between 1992 and 2001. This category includes cucumbers, watermelon, squash, cabbage,
carrots, eggplant, radishes, lettuce, berries and other miscellaneous vegetable crops. The
combined receipts (in 2001 dollars) for these vegetables declined from $664 million in 1992,
to $518 million in 2001, or 22 percent over the 10 year period (Figures 4 and 5).
California represents Florida's biggest domestic rival in the production of fresh
vegetables and its dominance of the industry has been growing. While Florida's fresh vegetable
receipts declined in real value and in percentage terms of the national market during the 1990s,
California has benefited from a growing market for cool-season and specialty vegetables
(Figure 6). Producers there have responded by increasing acreage and production. Between
1992 and 2001 California's share of domestically produced fresh-vegetable receipts increased
from 29 to 41 percent. Although fresh vegetable receipts for states other than Florida and
California rose between 1992 and 1995, by 2001 they had fallen back to 1992 levels.
Figure 6. Florida, California, and Other State's Receipts for Fresh Vegetables, 1992 2001.
16 18%
14 1.59 17%
12 2.20 16%
10 15%6o
N 8- 14% 0
6 6.86 7.76 7.65 7.89 7.23 7.15 7.31 6.70 6.75 6.77 13%
4 12%
2 4 11%
0 10%
1992 1993 1994 1995 1996 1997 1998 1999 2000
I 1 Other States i California I Florida *Florida percent
Source: USDA-ERS, U.S. and State farm income data, www.ers.usda.gov/data/farmincome/finfidmu.htm
It is interesting to look at changes in Florida's position in the U.S. fresh tomato market
between 1992 and 2001. Although California is known as the leading producer of processing
tomatoes in the U.S., it is also the second largest domestic supplier of fresh tomatoes. Like
Florida, it has faced increasing competition from Mexico, but to a lesser extent due to a smaller
overlap in seasonal production patterns. While Florida's tomato receipts declined by over 48
percent between 1992 and 2001, California's declined by 34 percent (Figures 7 and 8). In 2001
California's fresh tomato acreage and production was above 1992 levels. Florida's 2001
acreage and production numbers were respectively 13 and 25 percent below where they were in
1992.
To appreciate the competitive dynamics of Florida's tomato industry, it is useful to
compare the volume and timing of tomato shipments from Florida, California, Mexico and
Canada (Figure 9). This diagram shows average monthly shipments of fresh tomatoes for the
years 1999, 2000 and 2001 from these four major supply regions. From January through
March, Florida and Mexico supply nearly equal shares of U.S. tomato shipments. Then in
April and May, Florida dominates the U.S. market as Mexican imports subside. June is a
transition month when shipments from Florida fall off dramatically, those from California
begin to pick up, and shipments from Mexico and Canada are still considerable. California is
the nation's largest supplier of tomatoes from July through October, although substantial
quantities of tomatoes originate from all across the continental U.S., as numerous local growers
supply tomatoes for local demand (not shown). Florida begins to re-enter the national market
in October, and by November its shipments dominate the highways. Over thee quarters of U.S.
tomato shipments originate in Florida in December, with Mexico capturing most of the residual
volume. By January, again, Mexico has nearly caught up to Florida in U.S. shipments.
Figure 10 demonstrates the phenomenal growth in imports of fresh tomatoes that took
place in the 1990s. From 1992 through 1996, the value of Mexican tomato imports to the U.S.
more than quadrupled, with trade restrictions reduced through NAFTA and prices for Mexican
imports reduced due to a devalued Peso. In October of 1996, the U.S. and Mexico signed an
agreement to suspend an anti-dumping investigation. This agreement restrained Mexican
tomato growers from selling tomatoes in the U.S. for less than a reference price of about $0.21
per pound. While the value of Mexican imports has trended lower since that year (Figure 10),
Figure 7. Florida Fresh Tomato Production, Acres, Price and Revenues, 1992-2001
$100
$80
o
o
$60 "
$40
$20 5
$0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
1 Revenues -- Production -* Price Acres
Source: USDA-NASS, "Agricultural Statistics", 1994, 1998, and 2002, http://www.usda.gov/nass/pubs/pubs.htm
Does not include cherry or plum type fresh tomatoes.
Figure 8. California Fresh Tomato Production, Acres, Price and Revenues, 1992-2001
$100
LI)
$80
$60 o
o
$40
$20 -
$0
1994 1995 1996
1997 1998 1999 2000 2001
l Revenues -I Production Price Acres
Source: USDA-NASS, "Agricultural Statistics", 1994, 1998, and 2002, http://www.usda.gov/nass/pubs/pubs.htm
1Does not include cherry or plum type fresh tomatoes
1992 1993
Figure 9. Average U.S. Monthly Fresh-Tomato Shipments Originating from Florida,
California, Mexico and Canada, 1999 2001 '
4,000
3,500 -
3,000 1
2,500
2,000
1,500
July Aug. Sep. Oct. Nov. Dec.
1,000
500
0
Jan. Feb. Mar. Apr. May June
Source: USDA-AMS, "Fresh Fruit and Vegetable Shipments". 1999 2001. www.ams.usda. gov/fv/mncs/shipsumm99.pdf
1Does not include shipments of cherry or plum type fresh tomatoes, or shipments from other states or countries.
Figure 10. Value of Fresh Tomato Imports by Country of Origin, 1992 2001.
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Source: USDA-ERS, "Annual Fresh-Tomato Import Value by country".
http://www.ers.usda.gov/briefing/tomatoes/tomatopdf/FrTomlmpCntry.pdf
imports of Canadian greenhouse tomatoes have surged. This has been a result of increased
U.S. demand for higher quality tomatoes and currency exchange rates favorable to Canadian
exports. Since 1996, imports of tomatoes from the Netherlands to the U.S. have also become
significant.
Geographic Distribution of Florida's Vegetable Industry
Like many other specialty crops, the production of fresh vegetables has become
concentrated in specific geographic areas of the nation and within individual states as well.
Climate and soil types are important environmental determinants of the suitability of an area for
specific types of agricultural production, and these are closely associated with geographic
location. The availability of various forms of public infrastructure are also critical to the
development of many types of industrial development and this is true for agriculture as well.
The concentration and national importance of fresh vegetable production in Florida is indicated
in Tables 2 and 3. In Table 2, the top 10 Florida counties in terms of harvested acres of fresh
vegetables, melons and berries are shown to represent over 81 percent of the State's total
acreage in fresh vegetable production. As shown in the far right-hand column of Table 2,
nearly 48 percent of the State's vegetable acreage is located in the top three producing counties
and the top five counties have almost 64 percent of total production. The counties in Florida
with the highest receipts from fresh vegetable sales are shown in Table 3. In 1997, Palm
Beach County ranked first in the State and sixth in the Nation in terms of
sales of fresh vegetables ($267 million in 2001 dollars). As the table shows, thirteen of the
nation's top 100 counties for fresh vegetable sales are in Florida. Table 3 also lists the
commodities that are predominantly grown in these leading counties. The value of individual
commodities is shown later in Table 4.
Table 2. Florida's Leading Counties in Acres of Harvested Fresh Vegetables (including
sweetcorn, melons and berries), 1997
State Cumulative
County Rank Acres Percent Percent
Palm Beach 1 58,002 22.5% 22.5%
Dade 2 40,108 15.6% 38.1%
Manatee 3 25,110 9.7% 47.8%
Orange 4 23,469 9.1% 56.9%
Collier 5 17,070 6.6% 63.5%
Hillsborough 6 16,039 6.2% 69.7%
Hendry 7 9,646 3.7% 73.5%
Lee 8 6,938 2.7% 76.2%
Suwannee 9 6,860 2.7% 78.8%
Alachua 10 5,773 2.2% 81.1%
Source: USDA-NASS, 1997 Census of Agriculture, Florida State and County Data, Table 29
Table 3. Leading Florida Counties in Value of Fresh Vegetables, Sweet Corn, Melons in
1997 (2001 dollars). 1
State US Receipts
County Rank Rank $1,000 Leading fresh vegetable crops
Snap Beans cahhbae celery sweet cnrn cucumber
Palm B eacli I 2 -' k10 1,,,, I ,,, .. .. ;. ,..6 i . ,,,,., I..., ,6,...
Snap Beans, sweet corn, cucumbers, eggplant, sweet & hot
Collier 2 10 181,564 peppers, potatoes, squash, tomatoes, watermelons
nitp 8, prle be-ni cehlbbe -,eet crn. e__plant '1kr4
Dade 3 13 138.5 ,,. .., ,,,, ..,,,..
Manatee 4 14 129,248 Cabbage, cauliflower, potatoes, tomatoes, watermelons
Cabbage, chinese cabbage, sweet corn, cucumbers, greens
Orange 5 23 64,717 spinach.
Snap Beans, sweet corn, cucumbers, eggplant, sweet & hot
Hendry 6 25 61,122 peppers, potatoes, squash, tomatoes, watermelons
Blueberries. snap & pole beans. lima beans. cabbage.
H illsboroi g lh 2I 0. 1 43 .,,1,,,,1... n,.i,- .,,,,.1 ....1 ,1... . .. ,,..... n
Snap Beans, sweet corn, cucumbers, eggplant, sweet & hot
Lee 8 28 58,275 peppers, potatoes, squash, tomatoes, watermelons
G adsden c 465 31 .035 ,... .... ,,,,, . ....... .. ...
Martin 10 54 (D)2 Cabbage, potatoes, tomatoes, watermelons
S im annee 11 6 1".04" ,,,,,,,,i , ,, ,.,,,, i...,,,.. .,,,,.,, ,,,,,...,,.
Alachua 12 86 13,953 Snap beans, cucumbers, peppers, potatoes, squash
St L iicie I 13 8 ( ) D r ....... ,i ..... p.. .
Source: USDA-NASS, 1997 Census of Agriculture. Rankings of State and County Tables,
http://www.nass.usda.gov/census/census97/rankings/tbl33.pdf
1 For purposes of comparison to other U.S. counties these estimates do not include berries.
2. Value was withheld by USDA to avoid disclosing data on individual farms.
The geographic distribution of fresh vegetable production within the state of Florida is
graphically shown in Figure 11. The top two counties in terms of acreage (Palm Beach and
Dade) are located in the southeastern part of the state (areas 7 and 8 in Figure 11). Three other
top-ten counties for vegetable acreage are also located in southern Florida (Collier, Lee and
Hendry), but nearer the Gulf coast (area 6, Figure 11). Manatee and Hillsborough Counties are
respectively the third and sixth largest fresh vegetable-acreage counties in the state, and are
also located on the Gulf coast in area 4 (West Central Florida). Orange County, the fifth largest
in terms of acreage, is located in the central region of the State (area 3, Figure 11). Only two
of the State's 10 largest fresh-vegetable counties are located in north Florida. These are
Alachua and Suwannee counties, which are located in Area 2 of Figure 11, and together
account for less than 5 percent of total acreage.
Acreage data on the production of six important fresh vegetable commodities within the
state of Florida are presented by county in Table 4. For all six commodities, 64 percent or
more of the state's total production comes from its top 5 counties in terms of production
acreage. In the case of snap beans, over 70 percent of the state's acreage is located in just two
counties. Similarly, for sweet corn the two largest production-area counties in the State
account for 68 percent of the state's total acreage. With the exception of watermelons, the top
three counties have well over one-half the production for each of the commodities, ranging
from 54 percent for tomatoes, up to 84 percent for sweet corn.
The major implication of these statistics is that the geographic distribution of fresh
vegetable production is highly concentrated, not only nationally, but also within Florida.
Consequently, changes in market conditions or policies that impact prices and trade can have
dramatic impacts on local and regional economies. By the same token, local and regional
policies and events with the potential to impact agricultural production can have significant
implications for national markets for fresh vegetables.
Figure 11. Geographic Distribution of Florida's Vegetable Industry
f ANwAGThN GqEM B NLSJ H
PRINCIPAL VEGETABLES
PRODUCING AREAS
I WEST H T
A. Holmes-Jackson-Washington counties -Butter beans, field peas water- 3 i .. -
melons.
2. NORTH
C. Suwannee Valley Beans, corn, cucumbers, greens, peas, peppers, pota- :
toes, squas watermelons.
D, Starke-Brooker-Lake Butler Limabeans, msnap beans, blueberries, ucuum- p D K
G
bers, peppers, squash, strawberries.
E. Hastings Cabbage, potatoes.
F. Gainesville-Alachua Blueberries, bush beans, cucumbers peppers,- i
potatoes, squash.n beans, sqN s t
Island Grove-Hawthorne Blueberries, cucumbers, pepeppers, sweet corn, s
squash, watermelons." 7 ,
3. NORTH CENTRAL
H. Oxford-Pedro -Tomatoes, watermelons.
I. Sanford-Oviedo-Zellwood Cabbage, chinese cabbage, sweet corn,
cucumbers, greens, spinach.
J. Webster Cucumbers, eggplant, peppers.
4. WEST CENTRAL
K. Lake Placid Sweet corn, radishes, lettuce, parsley, beets.
L. Plant City-Balm Blueberries, bush and pole beans, lima beans, cabbage,
cucumbers, eggplant, field peas, greens, squash, strawberries, cherry
tomatoes watermelons.
M. Palmetto-Ruskin Cabbage, cauliflower, potatoes, strawberries, tomatoes,
cherry tomatoes, plum tomatoes, watermelons.
N. Sarasota Cabbage, celery, cucumbers, sweet corn, escarole. lettuce,
radishes.
O. Wauchula- Blueberrie4 cucumbers, eggplant, peppers, tomatoes, water-
melons, squash.
5. EAST CENTRAL
P. Ft. Pierce Tomatoes, watermelons, snap beans.
6. SOUTHWEST
Q. Snap beans, sweet corn, cucumbers, eggplant, sweet andhot peppers
potatoes, squash, tomatoes, cherry tomatoes, plum tomatoes, watermelons.
7. EVERGLADES
R. Bush beans, cabbage, celery, Chinese cabbage, sweet corn, escarole,
greens, lettuce, radishes.
8. SOUTHEAST
S. Martin County Cabbage, potatoes, tomatoes, watermelons.
T. Pompano Bush beans, limabeans, sweet corn, cucumbers, eggplant,
sweet and hot peppers, squash, tomatoes, cherrytomatoes, plum tomatoes.
U. Homestead Bush and pole beans, cabbage, sweet corn, eggplant, okra,
pickles, potatoes, squash, strawberries, tomatoes, cherry tomatoes, plum
tomatoes.
LEE ~mRY p
6 -
U
I Commercial Vegetables
8 Watermelons
Source: USDA-NASS, Florida State Office
Table 4. Leading Florida Counties in Acreage of Specific Vegetable or Melon
Commodities, 1997
Cumulative
Commodity State/County Rank Acres Percent Percent
S\ eel Corn Florida -43.55 5L
Palm Beach 1 21,770 49.9% 49.9%
Orange 2 7,960 18.3% 68.2%
Dade 3 6,909 15.8% 84.0%
Alachua 4 420 1.0% 85.0%
Marion 5 84 0.2% 85.2%
To Ilatoes Fhlorida 3. 'Ioin
Manatee 1 8,596 21.5% 21.5%
(olici 2 N.57 21 5".. 43 II",,
Lee 3 4,447 11.1% 54.2%
Dade 4 4,023 10.1% 64.3%
Palm Beach 5 3,960 9.9% 74.2%
Waterminelons Florida 30.32S,
Manatee 1 2,792 16.9% 16.9%
Hendry 2 2,492 15.0% 31.9%
Levy 3 2,219 13.4% 45.3%
('olhic 4 1.512 1 I" ,, 54 u",,
Suwannee 5 1,574 9.5% 64.4%
Snap Beans Florida 30,275
Dade 1 17,138 56.6% 56.6%
Palm Beach 2 4,291 14.2% 70.8%
Alachua 3 2,027 6.7% 77.5%
Suwannee 4 1,650 5.5% 82.9%
Manatee 5 1,209 4.0% 86.9%
S\ eel Peppers Florida I .711
Palm Beach 1 6,587 33.4% 33.4%
(oiliei 2 x.s51 I 5"., 53 r',,,
Manatee 3 3,274 16.6% 69.6%
Hclndi 4 2.44', 12 4"., XI U",,
Lee 5 626 3.2% 85.1%
Cuicum bers Florida l i.5i~1
Manatee 1 4,360 26.3% 26.3%
Palm Beach 2 3,599 21.7% 48.1%
Collier 3 2,052 12.4% 60.4%
Dade 4 1,527 9.2% 69.7%
Alachua 5 250 1.5% 71.2%
USDA-NASS Census of Agriculture, 1997
Economic Impact of Florida's Vegetable Industry
Production and sales data for an industry only give a indication of its direct impacts on
an economy. A complete economic evaluation should also account for the industry's indirect
impacts through the transactions it has with various suppliers, workers, owners and
governments. In addition, induced impacts that follow from the earnings, profits and taxes
generated by the direct and indirect activities should also be computed to estimate the industry's
total impact on the economy. The theory and techniques used to model and calculate these
interdependencies within an economy are known as input-output analysis (Miller and Blair,
1987).
An input-output analysis software and database package called IMPLAN PRO was used
to estimate the total economic impacts of the vegetable industry for the state of Florida 1. This
software is licensed to the University of Florida by the Minnesota Implan Group, Inc. It allows
construction of regional input-output models for any county, group of counties, or state within
the United States. Industries within these models are classified into one of 528 different
sectors, based on the four-digit Standard Industrial Classification (SIC) system Vegetable,
sweetcorn, melon and berry production as well as their associated packing enterprises are all
classified under the "vegetable" sector within this system.
While Florida is a major vegetable producer for the nation, the production practices
typically employed by producers within the state are often unique compared to other regions of
the country that grow fresh vegetables. This is largely due to unique characteristics of
Florida's climate, soils and economy. Many of the economic relationships modeled by
IMPLAN are based on coefficients derived from national averages, which in some case may
not be representative for a particular region. To provide more accurate and reliable estimates of
the economic impacts of Florida's vegetable industry, historical budgets developed by the
University of Florida for various vegetable production enterprises were used to customize
IMPLAN's model parameters. These parameters were entered into the software database as
production function or absorption coefficients, and represent the proportion of total production
costs allocated to specific types of inputs. The customized production function coefficients for
1 Minnesota IMPLAN Group, Inc. IMPLAN Pro, User's Guide. Second Edition, June, 2000. Stillwater,
Minnesota. www.implan.com
Florida are shown in Table 5. A compilation of the crop production budgets used to generate
these coefficients is given in Table Al of the appendix to this report.
Table 5. IMPLAN Production Function Coefficients for Florida Vegetable Industry
Sector Absorption
Expense Category IMPLAN Sector Number Coefficient
Value Added
Labor Households, low income 10002 0.363
Land rent Households, high income 10009 0.048
Total ___0.411
Inter-industry Purchases
Seed or tranansplants Greenhouse & nurser ..pro .....duc.ts 23 0.047
Nitrogenous and phosphatic
Fertilizer and lime fertilizers 202 0.041
.... C hemi cals...psticides .f....t ans) ............... Agicu .tur h.. .. ia ............ 204 .. 0.140
Plastic items (mulch, string, tubing,
irrigation parts) Plastics materials and resins 191 0.021
....ood..items (stakes, packing crates) Wood products, n.e.c. 147 0.086
Contract services (fert. application, Agricultural, forestry, fishery
land leveling, pollination) services 26 0.005
Insurance Insurance carriers 459 0.002
Machinery & equipment (repairs,
.ainteance, fuel, lube, depreciation) Far machinery & equipment.. 309 0.109
Interest Banking 456 0.020
.......Organization fees & a....................ss ments Business as..so....ciations 503 0.003
General overhead Other business services 470 0.115
Total ___0.589
Total Value Added & Inter-
industry Purchases 1.000
To properly estimate the total economic impact of an industry within a particular region,
consideration must also be given to the proportion of sales that occur outside the region or
state. The proportion of fresh vegetables produced in the state and shipped outside the state
represent "new" dollars for Florida. Compared to in-state sales, which only represent financial
transfers among state residents, revenues from out-of-state sales have a multiplier effect
because they generate indirect and induced impacts as they flow into and through the economy.
It is estimated that 89.2 percent of the value of Florida's fresh vegetable production comes from
products shipped out of state 2. Using this estimated proportion, the level of out-of-state sales
for Florida fresh produce is calculated to be $1,411.68 million, as shown in Table 6. The
remaining 10.8 percent of total receipts from in-state sales is equal to $170.92 million.
Table 6. Receipts from In-State and Out-of-State Sales of Florida Fresh Vegetables,
Melons, and Berries, 2001
Category of Sales In-state Out-of-State Total
Sales (Million $) $170.92 $1,411.68 $1,582.61
Percent 10.8% 89.2% 100.0%
When these industry receipts and production parameters are entered into the IMPLAN
model, the software calculates how these revenues are spent and distributed throughout 528
sectors or institutions within the state and national economy. Impact estimates are then
computed for output, value added, labor earnings, taxes and employment at their direct,
indirect, and induced levels. The total impact is represented by the sum of these three levels of
effect. The estimated economic impacts from total fresh vegetable sales are shown in Table 7.
The estimated economic impacts are given in terms of output, value added, earnings,
employment and taxes. Output values show the gross amount of economic impact from
industry sales. Value-added impacts are the compensation to labor, management and
ownership generated by the activity. Labor income is the component of value-added that is
derived from the earnings to labor. Employment impacts represent the number of jobs (both
full and part-time) created by the industry and are based on industry-average output per worker
statistics. Indirect business taxes represent estimates of how much fresh vegetable receipts
contribute to local, state and federal government revenues, through sales, excise, property and
other taxes, but not income taxes. Importantly, these different types of impact estimates each
represent a separate way of measuring an industry's local economic importance. They are not
additive values.
The estimated economic impacts derived from fresh vegetable receipts are arranged in
Table 7 by type of impact and level of effect. Direct output impacts from combined instate
2 Based on estimates provided by Dr. Richard Beilock, Food and Resource Economics Department, Institute of
Food and Agricultural Sciences, University of Florida, November, 2002. From data collected by the Florida
Department of Agriculture and Consumer Services at highway inspection stations for all truck shipments from
Florida.
Table 7. Estimated Economic Impacts of Florida Fresh Vegetables, Melons, and Berries,
2001,
Impact Type / Level Units Direct Indirect Induced Total
Output A 1,582.60 458.80 1,093.76 3,135.16
Value added a 650.45 237.75 703.06 1,591.26
Earnings 574.49 152.59 451.37 1,178.44
Indirect Taxes 0.00 9.83 57.63 67.46
Employment jobs 14,037 4,477 13,532 32,046
and out-of-state sales of fresh vegetables are equal to total receipts of $1,582.61 million as was
shown in Table 6. When the indirect and induced impacts are added to this, the total output
impact is magnified to $3,135 million. This represents an average multiplier of 1.98. The
value-added multiplier is even larger at 2.45, expanding the direct value-added impact from
$650 million to a total value-added impact of $1,591 million. Direct earnings impacts are
expanded by a factor of 2.05 when indirect and induced impacts are added to it, and the direct
employment represented by 14,037 jobs in the state's fresh vegetable industry, is multiplied by
a factor of 2.28 to ultimately generate an estimated 32,046 jobs throughout the state. It is
important to note that employment estimates include both fulltime and part-time jobs, and that
total impact estimates are the sum of direct, indirect and induced impacts. Fresh vegetable
sales do not directly generate tax revenues for government institutions, but taxes resulting from
indirect and induced spending yield over $67 million to these institutions. Due to the high
proportion of revenues that are brought in from out-of-state sales, the total economic impact of
Florida's fresh vegetable industry is significantly greater than its total receipts.
Literature and Information Sources Cited
Florida Agricultural Statistics Service (FASS), USDA-NASS, "Citrus Summary",
http://www.nass.usda.gov/fl/
Florida Agricultural Statistics Service (FASS), USDA-NASS "Farm Cash Receipts and
Expenditures" http://www.nass.usda.gov/fl/
Florida Agricultural Statistics Service (FASS), USDA-NASS, "Vegetable Summary",
http://www.nass.usda.gov/fl/
Miller, Ronald E. and Peter D. Blair, 1985. "Input-output Analysis: Foundations and
Extensions". Prentice-Hall, Englewood Cliffs, New Jersey, 464 p.
Minnesota IMPLAN Group (MIG), 2002. IMPLAN, Economic Impact and Social Accounting
Software, and data for Florida. Stillwater, MN.
Smith, S.A., and T.G. Taylor. "Production Costs for Selected Vegetables in Florida" Food and
Resource Economics Department, Institute of Food and Agricultural Sciences, University of
Florida, http://www.agbuscenter.ifas.ufl.edu/cost/
USDA Agricultural Marketing Service (AMS). "Fresh Fruit and Vegetable Shipments". 1999
2001 issues. http://www.ams.usda.gov/fv/mncs/shipsumm99.pdf.
USDA Economic Research Service (ERS). "U.S. and State Farm Income Data",
http://ww.ers.usda.gov/data/farmincome/finfidmu.htm
USDA National Agricultural Statistics Service (NASS), "1997 Census of Agriculture",
http://www.nass.usda.gov/census/.
USDA National Agricultural Statistics Service (NASS), "Statistical Highlights, 2001-2002",
http://www.usda.gov/nass/pubs/stathigh/content.htm
Appendex
Table Al. Florida Vegetable Crop Budgets, 1999-2000, dollars per acre.
Tomatoes, Watermelons,
Green Dade Co, Alachu/Levy
Sweet Corn, Peppers, Manatee/ Co, Manatee/
Crop & Location Dade and Eggplant, Palm Beach Potatoes, Summer Rusklan, Rusklan,
Budget Snap Beans, Cabbage, Palm Beach Palm Beach Co and lastings and Squash, Strawberries North Fla, SW Fla,
Category Budget Item Dade Co Hastias Co Co SW Fla Dade Co Dade Co Plant City SW Fla North Fla
Seed or
tra plants Seed 92 0 67 0 0 394 156 29 29
Transplants 240 0 250 840 0 0 1.670 237 30
Cover Crop Seed 6 6 0 32 8 0 38 0 0
Fertilizer and hme Ferzer and lme 139 153 319 470 359 202 100 184 365 149
Chemicals Fumigant 0 0 602 602 24 650 570 139
Funricide 178 42 33 151 236 154 208 581 362 143
Herbicide 3 34 38 33 44 37 82 65 16
Insecticide 131 149 281 592 512 71 158 398 516 63
Nematicide 42 0 0 0 115 227 323 453 259
Surfactants 0 0 0 0 0 0 0 27 0
Plastics Plastic Strng 0 0 35 7 0 0 0 74 0
Plastic Mulch 0 0 378 224 0 0 293 263 32
Trickle Tube 0 0 0 0 0 0 202 124 0
Misc Irrigation Material 0 0 0 0 0 0 0 14 0
Styrofoam Cups 0 0 0 0 0 0 0 0 15
Wood Stakes 0 0 113 18 0 0 0 62 0
Replacement Stakes 0 0 0 0 0 0 0 7 0
Containers 425 376 1.190 998 101 405 3.718 1.049 10
Preditorv Mites 0 0 0 0 0 98 0 0
Labor Labor 285 230 258 538 428 172 0 0 0 0
Machmery Labor 0 0 0 0 0 0 19 0
Tie 0 163 13 0 0 0 131 0
Scout 20 20 30 0 0 57 37 6
Set Plants 102 0 0 0 0 0 0 0 0
Set/Dnve Stakes 0 110 31 0 0 0 56 0
Cut/kPll/Bundle Stakes 0 126 42 0 0 0 0 15
Clean Ditches 9 75 50 0 0 0 0 4
Potato seed haul 0 0 0 8 0 0 0 0
Trandnant labor 0 0 0 0 0 220 0 0
Hand Weed 0 0 12 0 0 120 0 0
i ... i ,, 0 0 0 0 0 0 1 0
Prime Tomatoes 0 0 0 0 0 0 27 0
Cross Ditch 0 0 0 0 0 0 4 0
Set Cups 0 0 0 0 0 0 0 7
Remove Cups 0 0 0 0 0 0 0 3
Supervision 297 394 932 993 201 287 0 973 175
Pick. pack and haul 370 1.638 2.370 0 0 0 0 162
Pack. load and haul 0 0 0 0 0 968 0 0
Cut and pack 404 0 0 0 0 0 0 0 315
Dig and haul 0 0 146 615 0 1.069 0
Haul 43 0 0 0 0 0 0 0 0
Pick 0 0 0 0 3344 0 0
Packmn 0 0 0 0 514 0
Load 130 0 0 0 0 210 0 0
Selling 93 213 55 700 525 93 150 1,650 208 321
Gradin 0 0 0 229 0 0
Grade and Pack 0 0 0 0 570 0 0
Harvest Supervision 0 0 0 0 330 0 0
Contract services Aenal Fert App 1 35 0 0 6 0 5
ii ,' ,, 2 0 0 0 0 0
Level land 0 50 113 0 41 0
Insurance carmers Cro Insurance 13 0 0 14 33 0
Rent Land rent 200 100 425 400 425 217 200 875 371 53
Machinery &
enumment Machinery operation 341 147 343 331 586 170 272 362 573 266
Machinery fixed 85 61 96 145 195 84 75 172 215 153
Well maintenance 15 8 0 0 5 15 2 13
Farm trucks 16 10 16 40 23 31 24 82 20 19
Dumpster Container 0 0 0 0 0 4
Hydro-cool 120 0 0 0 0 0 0
Mlechamcal harvest +
container 786 0 0 0 0 0 0
Interest Interest 48 57 69 155 224 98 64 422 235 54
Overhead 371 329 492 1.166 1.241 428 359 1.938 1.217 188
Ormnl9ition fees 0 0 0 0 R 0
Continued, next page
Table Al (continued). Florida Vegetable Crop Budgets, 1999-2000, dollars per acre.
Watermelons,
Tomatoes, Alachu/
Green Dade Co Levy Co
Sweet Corn Peppers, Potatoes, Manatee/ Manatee/
Crop & Location Dade and Eggplant, Palm Beach Hastings Summer Ruskln, Rusln, SW
Snap Beans, Cabbage, Palm Beach Palm Beach Co and and Squash, Strawberries North Fla, Fla, North
Budget Category & Totals Dade Co Hastins Co Co SW Fla Dade Co Dade Co Plant City SW Fla Fla
Total oDeratine cost 1.248 1.214 1.517 4.272 4.550 1.473 1.223 5.836 4.526 1.228
Total fixed cost 953 490 1,406 2,642 2,846 577 920 2,986 2,833 587
Total PreharvestCost 2,201 1,704 2,923 6,915 7,396 2,051 2.143 8,822 7,359 1,815
Total harvest and marketing cost 1.129 1.084 801 3.528 3.893 484 1.950 10.010 4.914 847
Seed or transplants 92 246 74 250 872 403 156 1.708 266 59
Fertilizer and hme 139 153 319 470 359 202 100 184 365 149
Chemicals 312 268 352 1,379 1,394 402 593 2,034 1,993 621
Plastics 0 0 0 414 231 0 0 494 475 47
Wood products 0 425 376 1.303 1.016 101 405 3.718 1.118 10
Production Labor 582 332 681 1.965 1.599 381 287 397 1.247 210
Harvest/Marketig Labor 222 659 425 2,338 2,895 468 1,545 6,292 3,790 798
Contract services 0 0 37 50 113 6 0 0 56 15
Insurance camers 0 0 13 0 0 14 0 0 33 0
Landrent 200 100 425 400 425 217 200 875 371 53
Machmner & equipment 1363 218 463 515 803 289 386 617 810 453
Interest 48 57 69 155 224 98 64 422 235 54
General overhead 371 329 492 1,166 1,241 428 359 1,938 1,217 188
Orgamzation fees & assessments 0 0 0 0 0 0 0 0 81 6
Waste disposal 0 0 0 40 59 0 0 56 175 39
Total Cost 3,329 2,788 3,724 10,443 11289 2,534 4,093 18,832 12,273 2,661
Total Planted Acres 36.000 8.200 41.000 1.800 18.600 33.400 12.100 6.300 43.200 30.000
Total Harvested Acres 35000 7,900 36,900 1,800 18,100 33,000 11,800 6,300 43,200 27000
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