In 2011, domestic animal agriculture consumed 30 million tons of soybean meal — by far the largest source of soybean meal demand. Animal agriculture encompasses mainly beef cattle, hogs, broilers, turkeys, eggs, sheep, dairy, and aquaculture. Future soybean demand is tightly linked to the health of these industries.
However, animal agriculture today faces battles over consumer demand, input costs, regulations, and production practices. As of the writing of this report, multiple issues threaten to keep production costs high or drive them higher, issues ranging from widespread drought conditions to implementa-tion costs of the Food Safety Modernization Act. Environmental regulation is another area of concern, with the EPA set to expand regulations for animal feeding operations.
In all, significant changes to animal agriculture could occur over the next two to three years. How much feed costs will rise remains to be seen, but even small cost increases will have impacts in light of an already strained situation as feed and food compete with fuel for commodity inputs.
Consequently, actions to maintain and expand animal agriculture in the United States — by supporting its long-term competitiveness – are of critical importance to the soybean sector.
In order to take effective action at the state and local levels in support of animal agriculture, one needs data and analysis on the economic importance of the industry at those levels. The United Soy-bean Board contracted with Agralytica (formerly Promar International) to provide current estimates of the economic impacts of animal agriculture at the national, state and local levels.
In 2011, animal agriculture had the following positive national economic impacts:
- 1,692,000 » Job impact throughout the economy
- $333 billion >> Impact on total output in the economy
- $58 billion >> Impact on household incomes
- $12 billion >> Impact on income taxes paid
- $6 billion >> Impact on property taxes paid.
This study provides the most recent data on livestock, poultry, and aquaculture output, their soy-bean meal usage, and the benefits animal agriculture brings to each individual state and the national economy as a whole.
Soybean meal (SBM) plays an important role in animal agriculture in Kentucky, which in turn has a significant impact on the state’s economy.
In Kentucky: Animal agriculture in 2011 used an estimated 528,000 tons of SBM: 74% in broiler production, 9% for pork, and 5% in egg production; At the state level, animal agriculture represented $5.3 billion in revenues, $903 million in household income, and 36,000 jobs. In addition, it yielded an estimated $238 million in income taxes, and $102 million in property taxes; and Over the past decade, the expansion of animal agriculture in Kentucky has led to increases of $74 million in economic output, $10 million in household wages, 300 jobs, and $3 million in tax revenue.