By James T. Hammond
jhammond@scbiznews.com
Published Sept. 3, 2010

South Carolina could create an additional 10,000 jobs and boost agriculture’s impact on the state’s economy by about $16 billion annually, a new USC study suggests.

Doug Woodward, director of research at the University of South Carolina’s Darla Moore School of Business, said the study showed the state already reaps $132 for every dollar the state invests in programs such as the Certified S.C. Grown branding campaign.

The study recommends a series of strategic initiatives for the sector, which already accounts for 25% of the state’s overall economy

Research shows the economic impact of agriculture, forestry and allied industries to be almost $34 billion annually, generating about 200,000 jobs. State agriculture officials want to increase that annual impact to $50 billion over the next decade.

Hugh Weathers, the state Commissioner of Agriculture, said studies have shown that more than half of consumers surveyed are willing to pay a premium price for locally grown food. And he said the number of local farmers markets across the state has doubled in the past four years, as consumers and farmers have connected the supply-and-demand chain.

Weathers said that the farming population of the state has stabilized in recent years, after a generation of decline. And farmers are creating new markets for their produce in a culture in which people are increasingly eager to know the source of their food.

“People will buy locally grown products if they are labeled as such,” Weathers said.

The S.C. Department of Agriculture launched the Certified S.C. Grown branding campaign in 2007. Weathers said Georgia has had a similar program for 20 years, and North Carolina has been at it for 15 years.

“We’re playing catch-up,” he said.

Woodward said consumer attitudes are creating a new market for locally grown food products.

“I think there’s been a sea change in attitudes that just wasn’t there a few years ago,” Woodward said.

Weathers also said part of the state’s task is to convince young people of the value and rewards of a career in agriculture.

“A big part of our job is to develop the next generation of farmers,” Weathers said. “Today, the average age of a farmer is 59 years old.”

The study by the Moore School’s Division of Research was commissioned by the Agriculture Department at a cost of $45,000.

Woodward said the potential is great for increasing the share of food produced by S.C. farmers in the state’s food chain.

“We spend $7 billion to $8 billion on food annually in South Carolina; less than 10% of that food starts here,” he said.

Currently, the Agriculture Department spends about $1 million a year promoting the Certified S.C. Grown campaign. Woodward estimated on the basis of his research that the promotion generates $23 million in economic activity.

In addition to ramping up support for locally grown produce, the study said the state must:

• Explore alternative energy production from biomass.
• Increase domestic and international trade in agriculture products.

The study lists as priorities for effectively moving toward those goals:

• Restore recurring funding to the Certified S.C. Grown marketing program.
• Fund an agribusiness economic development program based in the S.C. Department of Agriculture.
• Develop economic incentives specific to the agribusiness industry.
• Reauthorize the Family Farm Development Act within the S.C. Department of Agriculture.
• Update regulations administered by the S.C. Department of Agriculture.