Using some budgetary number of expenses per year an expanded Mercer-Vu Farms Inc. will spend in the local economy…

$700,000 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

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

$72,000 per year to local veterinarians for care and medical supplies

$30,000 per year to local custom operating businesses

$24,000 per year to local AI companies for semen and service

ALSO...  $100,000 per year in local, state, and federal taxes

This is just a small list of projected expenses and does not even mention the multi-million dollar construction cost that will be excavated, built, supplied, and financed through local businesses and institutions.  This is a day and age when communities are bending over backwards to welcome businesses to stimulate the local economy.  As you can see the expansion of Mercer-Vu Farms Inc. will do a lot to stimulate the economy of Mercersburg and surrounding areas.  Continued on next page...

 

 

 

 

 

 

 

As this table shows for every dollar of growth by a dairy, $2.29 is generated in the local economy… by far more than any other industry.   Now if we take these numbers and apply it to our dairy and its expansion we can see how it will have a tremendously positive effect on the local economy.

For instance, in a study done by the New York Department of Labor and Cornell Cooperative extension they compared economic multipliers among different industries for their state.  Economic multipliers are used to show an industry’s impact on the local economy by showing for every dollar of final demand for an industry how much it will generate in growth in the local economy.  The following table shows the economic multipliers of different industries within that state.

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