The 2008 and 2009 production years have been a real financial challenge for livestock producers in Minnesota, especially swine and dairy producers. Many have lost huge amounts of equity in their business while others have simply exited their swine, dairy or other livestock business. Such financial conditions negatively affect the farm family. However, one must also ask themselves what is the economic impact of the livestock industry to Minnesota or what is the economic impact of an exodus of livestock producers?
This presentation will highlight a recent economic analysis of the Minnesota livestock industry utilizing IMPLAN (Impact Analysis for PLANning) software. IMPLAN is an input-output modeling software widely used to study economic structure. Data analyzed included all components of the swine, dairy, beef cow-calf and beef finishing industries for years 2004 through and including 2008. The study examined the value of production inputs and labor purchased by all facets of each enterprise. This analysis was an indication of the overall economic dollar value impact of each livestock enterprise to Minnesota, including on-farm jobs created by the livestock enterprise. Employee compensation, in the form of return to labor and management, was also included. The value of inputs purchased plus economic compensation resulted in the creation of economic multipliers. These economic multipliers were then used as an indication of jobs created elsewhere in the rural economy as a result of the livestock enterprises operating near rural communities.