Mercer Vu Farms Inc. produces milk

The construction of the new facility at Mercer Vu Farms Inc. has already pumped millions of dollars into the local economy but the benefits will continue for years to come.  In studies done in other states the economic impact of construction and yearly running of new dairy facilities has been examined. 

        In a study that you can find here: ( Missouri Study) they examined the impact of a 1000 cow dairy on the local economy.  For every dollar of construction cost $1.97 is generated in statewide spending and $.40 in statewide personal income.  Employment multipliers for $1 million in construction cost generated 3.4 FTE in local construction, 8.0 FTE from input suppliers and 9.0FTE from increased household spending.  Annually, $2.9 million in sales generates $7.6 million from sales of input supplies and increased household spending. 

        In a similar study found here: ( Ohio Study) they found that a $3.6 million dollar construction of a dairy facility added $1.44 million in the local economy.  Annually $4.79-5.16 million in sales added $1.41-1.51 in the local economy.  In this study they also noted that dairy development had much less of an impact on the fiscal cost of local municipalities (schools, fire, police, roads).  In comparing total fiscal costs per dollar of revenue received from different development they found industrial $.11, commercial $.15, residential $1.27 and dairy the lowest at $.08.

       Several other studies can be found here… Colorado Study, Wisconsin Paper, Vermont Paper

       As you can see from all of these references dairy farms play a positive role in the local economy.  If we take the multipliers from the first Missouri study we can see what a huge impact Mercer Vu Farms Inc has on the local economy. 

From  Construction:

$4.3 million was generated in statewide spending  and $1.8 million in state wide personal income. 15.3 FTE where created in local construction, 36 FTE from input suppliers and 40.5 FTE from increased household spending.

Annually:

$8.1 million is generated from sales of input supplies and increased household spending.

Using budgetary numbers Mercer Vu Farms Inc. will spend directly in the local economy….

$1,100,000 per year to local elevators and feed suppliers for feed inputs

$500,000 per year for payroll of employees living in the area

$440,000 per year to local heifer grower for custom raising of heifers

$100,000 per year for milk hauling

$100,000 per year to local veterinarians for care and medical supplies

$72,000 per year to local seed, fertilizer and chemical suppliers for cropping enterprise

$60,000 per year to local custom operating businesses

$48,000 per year to local AI companies for semen and service

ALSO...  $100,000 per year in local, state, and federal taxes                                            Continued on next page...

Mercer Vu  Farms Inc. Economic Impact on the Local Community

         Agriculture is a large part of our local economy and dairy farms are the largest part of our agriculture sector.  Mercer Vu Farms Inc.  and other dairy farms contribute a lot to the local economy.  Mercer Vu Farms Inc.’s contribution to the local economy not only affects the people we directly do business with it also has indirect and induced affects on other local businesses.  Mercer Vu Farms Inc. and our employees spend a great deal of money in the local economy that is good for all businesses agricultural and non-agricultural.  Here is a diagram that shows the relationship and impact that Mercer Vu Farms Inc has on the local economy...