An economic impact study of Premium Standard Farms and Farmland Foods has been completed by the Commercial Agriculture Program, University of Missouri Extension. Using an economic input-output model, IMPLAN, the researchers determined the combined economic impact of PSF and Farmland Foods to the state of Missouri to be $1.1 billion annually.
“We funded this study to be able to communicate what agriculture industries contribute to Missouri’s economy,” said Rex Ricketts, director of the MU 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 geographic regions. Missouri counties and regions with PSF and Farmland production facilities were evaluated. The authors also analyzed the contributions that the two businesses provided to the entire state of Missouri.
The economic impact study indicated that PSF and Farmland Foods were significant contributors to the economic vitality of Missouri, particularly north-central Missouri. PSF is a vertically integrated firm that focuses on pork production and is currently headquartered in Princeton, Mo. IMPLAN results indicated 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 of north-central Missouri.
Two models were run for Farmland Foods. One model represented Farmland Foods’ slaughter facility in Sullivan County. The second model represented Farmland Foods’ ham processing facility in Jackson County. Farmland Foods’ (Sullivan County) annual revenue of $425 million had a total economic impact of $601 million to the state of Missouri, of which $469 million was generated in Sullivan County alone. Farmland Foods’ (Jackson County) annual revenue of $100 million had a total impact of $142 million on the state of Missouri, of which $133 million could be attributed to ham production in Jackson County.
The complete economic impact study is available online.
Source: University of Missouri