Soybean Promotion Board – 2011 Proposal
Title: Economic Contribution of the Arkansas Soybean Industry
Investigators: Dr. Wayne Miller, Professor CED/AEAB – Project Coordinator
Mr. Nathan Kemper, TAA Coordinator, AEAB – Project Manager
Dr. Ron Rainey, Associate Professor, AEAB – Outreach Contributor
Dr. Jennie Popp, Associate Professor, AEAB – Research Contributor
Status: New
Stated goal: Develop an awareness and understanding of the economic contribution of the soybean
industry to the state economy
Specific objectives:
The primary objectives of this project are to:
1) Estimate the total economic contribution of the soybean industry to the Arkansas economy
2) Develop resource material which interpret and explain the findings for scientific and lay
audiences
3) Develop an outreach program to disseminate this information to state, local and industry
leaders and soybean growers.
Approach:
The first step is to estimate the total economic contribution of the soybean industry to the Arkansas
economy. The total economic contribution comprises three separate components: 1) direct
contributions–generated by farm production and processing of soybeans; 2) indirect contributions–
generated when soybean farms and firms purchase materials and services from other Arkansas
businesses; and 3) induced contributions–result when employees of soybean farms and firms and their
suppliers spend a portion of their earned income within Arkansas.
Input-Output (IO) analysis and the software Impact Analysis for Planning (IMPLAN) will be used to
construct models to estimate the soybean industry contribution. Data from the National Agricultural
Statistics Service (NASS) will be collected on the industry to 1) ensure that the IMPLAN data accurately
reflects output values in the soybean production sector in Arkansas and 2) supplement data in the final
reports ( e.g. total acreage, bushels produced, cash receipts).
The results of this study will be reported as estimates of total jobs, income and value added attributable
to the soybean industry in Arkansas. The employment, income, wages and value added generated by the
soybean industry will be reflected among the 440 industries in IMPLAN model.
The second phase of the project will be to develop an outreach program and resource materials which
not only report, but provide an understanding of the findings of the study and the significance of the
soybean industry to the Arkansas economy. Several methods of delivery will be used to report results
including a spreadsheet based reporting tool, printed reports and fact sheets, all of which will be
available in electronic format and on the CES web site. This spreadsheet tool will contain a database of
results and built in tables and macros to generate several reports. Standard tables will be generated
that summarize the results into a simple easy to read format. This tool will be capable of producing
customizable reports.
Reports presenting and explaining the findings of the study will be developed for different target
audiences including state and local leaders, CES agents and agriculture industry leaders. PowerPoint
presentations will also be developed for use by soybean industry and CES personnel in their educational
programs. The website will provide easy access to the study findings and help to highlight the positive
contributions of the soybean industry to a wide audience. Finally, the above activities will be part of a
greater program of outreach provided by the UA Division Cooperative Extension Service to effectively
communicate results to stakeholders and help them understand results of the contribution analysis. In
addition, UA Division will be accessible by all stakeholders to answer questions and provide guidance on
economic contribution analysis.
Planned Milestones:
Several milestones include:
1) Obtaining and verifying the data
2) Estimating the economic contribution of the soybean industry
3) Identifying target audiences and the resource material needed
4) Developing the resource material and outreach program
Value to the Soybean industry:
Knowing the economic contribution of the soybean industry to the state economy can assist in
identifying any segments where additional growth may be achieved and serve as a guide for improved
promotion of the industry to state and local leaders.