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 to $50 billion annually with a series of strategic initiatives in what is already 25% of the state’s overall economy, a new Moore School of Business study suggests.

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

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

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

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

The South Carolina 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 persuade young people of the value and rewards in 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 Department of Research was commissioned by the state Department of Agriculture at a cost of $45,000.

Woodward said there’s great potential to increase the share of food produced by South Carolina 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 Department of Agriculture 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 the support for locally grown produce, the study said the state must:

-- Explore alternative energy production form biomass;

-- And increase domestic and international trade in agriculture products.

The study lists as priorities to effectively move toward those goals:

-- Restore recurring funding to the Certified S.C. Grown marketing program;

-- Fund an agribusiness economic development program based in the South Carolina Department of Agriculture;

-- Develop economic incentives specific to the agribusiness industry;

-- Reauthorize the Family Farm Development Act within the South Carolina Department of Agriculture;

-- Update regulations administered by the South Carolina Department of Agriculture.