Moderator Simon Tripp , Battelle  Comments Chairman Frank Lucas, House Committee on Agriculture Presentation Deborah Cummings, Battelle

Impact and Innovation: Agbioscience in the Southern United States Panel Burns Hargis, Oklahoma State University  Bob Young, American Farm Bureau Federation  Peter Nelson, BioDimensions, Inc.  Ian Maw, Association of Public and Land-grant Universities Questions & Answers

IMPACT & INNOVATION:Agbioscience in the Southern United States

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The Agbioscience Industry Is…• An Innovation Engine for the United States

– Driven by land grant universities that were originally formed to pursue practical advancement of agriculture, science and engineering and transfer those advancements into practical use on the farm and within industry.

• A Complex Value-Added Supply Chain Driving Increased Output and Productivity

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Red BiotechnologyMedical Biotech

Green BiotechnologyAgricultural and

Environmental Biotech

Grey BiotechnologyIndustrial Biotech

Blue BiotechnologyMarine Biotech

BiopharmingVeterinary

Biotech

Nutraceuticals

FunctionalFoods

BiobasedChemicals

Instrumentationand Devices

Novel Genes andChemical Compounds

Biofuels

Drugs

Medical Devices

IndustrialEnzymes

Tissue

Chemicals

CropAgriculture

Fibers andMaterials

Biomass Production

EnvironmentalTechnologies

Biomarkers

Livestock

ProductionTechnologies

TransgenicOrganisms

Biosecurity

Agbiosciences within the 21st Century Bioeconomy

BiomassProduction

Residue/WasteStreams

MedicinalIngredients

Aquaculture

Diagnostics

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The Agbiosciences are at the Forefront of Addressing Global Grand Challenges• Enhancing the sustainability, competitiveness, and profitability of U.S.

food and agricultural systems• Adapting to and mitigating the impacts of climate change on food, feed,

fiber, and fuel systems• Supporting the energy security and the development of the bioeconomy

from renewable natural resources• Playing a global leadership role to ensure a safe, secure, and abundant

food supply for the United States and the world• Improving human health, nutrition, and wellness• Heightening environmental stewardship through the development of

sustainable management practices• Strengthening individual, family, and community development and

resilience.

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U.S. Agriculture

• 6.1% of global land area– 21.1% global oilseeds– 16.6% world’s grains– 12.6% cotton– 21.8% poultry– 21.0% beef

• 2.2 million farms, 917 million acres

• $418 billion in output and• $116 billion in exports.

Within global agbioscience and

agriculture it is generally acknowledged that the U.S. is the worldwide

leader.

As the BioCentury continues to unfold, it is

fair to expect that agbiosciences will

represent a key national opportunity for economic

expansion.

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Southern Agriculture Production• 24% of U.S. land area

– 40% of total number of farms– 81% of broilers– 78% cotton– 62% timber production– 2.4 billion landed catch

• 878,100 farms, 272 million acres

• $28 billion in exports– 89% chicken meat– 80% cotton– 65% rice

Within the Southern Region, the role of small farms is quite important

since more land is dedicated to farming

across smaller farms than one would expect when compared to national

statistics

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• In 2011, in addition to nearly 880,000 farms in the region, the Southern Region contained more than 82,000 companies participating in the value-added chain through the provision of products and services such as:– The manufacturing and supply of agricultural, inputs such as seed, fertilizer,

insecticides, farm equipment, etc.– Agriculture, aquaculture, and forestry processing services such as grain

milling, oilseed crushing, and lumber milling.– The value-added manufacturing of food, nutrition and health products.– The production of industrial products from biomass including fuels, chemicals,

materials, paper and textiles.

• Taken together, these farms and downstream, value-added industries in the Southern Region represent:– $1 trillion in economic output– 4.57 million jobs– $205 billion in total labor income

Southern Agbioscience Industry Analysis

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A Powerful Support System:The Southern Land Grant Extension Service and Experiment Station System

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Land Grant Universities and their Experiment Station and Extension System – An Integrated Research, Education and Extension System in Support of the Agbioscience Economic and Social Ecosystem

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Existing Businesses

New EnterpriseDevelopment

AppliedR&D

Piloting &Demonstration

BasicScience

TechnologyTransfer

Primary Agricultural and Forestry Production

Industry: Inputs to Primary Production(e.g. seeds, fertilizers, equipment)

Industry: Agricultural Processing

Industry: Commodity Wholesale and Storage

Industry: Food, Nutrition and Health Products Manufacturing

Industry: Industrial Products Manufacturing(e.g. fuels, chemicals, materials)

Industry

Industry and practitioners provide input on needs, challenges and opportunities

Southern Region land-grant universities perform sponsored research and development leading to new insights, innovations, technologies, tools and techniques.

The extension services of Southern Region land-grant universities provide hands-on assistance in knowledge and technology transfer and specialized education services to benefit industry, the economy and society.

Academic Initiated Inquiry

Industry Sponsored Inquiry

Regional land-grant universities initiate exploration in basic science inquiry and the application of knowledge to tangible problems, needs and issues. Extension field knowledge provides input to needs, challenges and opportunities to inform and facilitate research.

Extension and experiment station research and education in the SouthernRegion forms a proactive and holistic innovation ecosystem – with information,

innovations and solutions moving in both directions within the system

Land-grant Land-grant Land-grant Land-grant

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Core Categories of Functional Impact Areas

FoodSafety

FoodborneIllnesses

Advanced Processing

InnovationTechnology

Transfer

BusinessCreation

NewProducts

4-H

Life-longLearningEducation

HumanCapital

IndustrialBioeconomy

Energy Independence

EconomicDiversification

SuperFoods

Nutrition

Health

AgriculturalProduction

Livestock andAquacultureCrops

Research and outreach to enhance quality of lifefor rural and urbanfamilies and communities

Develop Human Capitol

Research and outreach to sustain

and grow agricultural production and

ag-related enterprises

Research and outreach to foster ecological and environmental stewardship and natural resource management

Serve as an agent of innovation that catalyzes economic growth

Research and outreach to catalyze the industrial bioeconomy(fuels, chemicals and materials)

EnvironmentalSustainability

SustainableCommunities

Research and outreach to ensure a safe food supply

Research and outreach to create value-added food products and services to promote bett er health and nutrition

Family Systems

CommunitySystems

Value-addedProduct

Development

Water

NaturalResources

Soil

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Economic Impact of Growing Agriculture Production and Ag-Related Business Enterprises

The Economic Impact of a 1 Percent Increase in the Southern Region’s Agricultural OutputUsing the IMPLAN input-output model developed for the Southern Region, Battelle calculated on an annual basis the impact of a 1 percent increase in agricultural production (including crops, dairy, poultry and eggs, cattle, fisheries, and forestry). A 1 percent increase in production would yield: $2.2 billion in economic output annually across the Southern region $513.3 million in personal income for Southern region residents More than 18,500 jobs would be created within the Region.It also should be noted that expanding the agricultural sector could benefit every county in every state within the Region. Agriculture and associated processing industries are highly diffused across the Region; therefore, the direct and indirect effects of expansion in the sector are felt much more widely than with more narrow, geographically focused sectors.Finally, it is important to note that the Southern Land Grant Extension Services and Experiment Station System collectively received $548 million in federal funding and $1.062 billion in state funding in FY2011. At this level of funding, the System has only to positively impact agricultural output by only 0.25 percent to cover its federal appropriation and by 0.48 percent per year to cover its state appropriations. As shown in a variety of the case studies, the impact of these activities is likely many times higher than this—thereby providing the federal government and the regional state governments with a significant return on their investment.

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Direct Economic Impact of Southern Region’s Land Grant Agricultural Services Organizations

• The Expenditures of the Experiment Stations and Extension Services generated:– $5.4 billion in total economic impact– 62,000 jobs– $2.55 billion in wages and benefits

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A System Facing Significant Global Challenges

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There’s good news and bad news…

• The importance of agbiosciences is expanding due to its great relevance to global needs and challenges—BUT, this is occurring at a time of budget crises within federal, state and local funding agencies and within private industry.

• There is a fundamental tension between meeting expanding needs and opportunities while attempting to operate within a budget crisis environment.

• The challenge is compounded by a general lack of understanding in public and political circles regarding the extreme importance of agbiosciences, experiment stations and extension services to future global stability, national economic development and human and environmental health.

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Challenges to Agbioscience Institutions in the Current Environment

Challenges and Issues

Federal Decline of federal formula funding. Potentially significant cuts to research and extension funding under

sequestration specifically, or under general initiatives to lower federal spending.

A need to increase funding for agbioscience related R&D, via NIFA, if land-grants are to fully address the major issues and opportunities.

State Rising tide of state fiscal crises limiting support to state universities, experiment stations and extension.

Fiscal problems for U.S. counties limiting traditional local support for extension.

General Public Lack of communications regarding the growing importance of agriculture and agbioscience to global issues and development opportunities.

Need for those benefiting from programs to voice their impact and appreciation with key decision makers.

Need to communicate the “public value” of programs Need to better connect the message of agriculture = food = nutrition =

health

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Agbiosciences are critically important to tackling many of the most pressing issues facing the nation and globe—yet, as a collective suite of disciplines, agbiosciences receive the least amount of funding attention in the national R&D funding scheme.

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Conclusion• The Southern Land Grant Extension Services and

Experiment Station System has been, is, and will continue to be a primary engine for economic and social sustainability and growth. – Ultimately, the System is focused on improving and sustaining the

Southern Region of the United States—improving its economy, preserving its environment, growing a skilled workforce, and contributing to continued social sustainability and responsibility.

• The impact of the System’s programs and expenditures represent a significant return on investment for federal, state, and local funding sources. – As a result, these institutions should be considered priorities for

further strategic investment and development given their importance in realizing the intrinsic growth potential of agbiosciences for the U.S. and regional economies.

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Contact

Simon Tripp

Senior Director

Battelle Technology Partnership Practice

Phone: 412-523-6895

E-mail: tripps@battelle.org

Deborah CummingsSenior Program ManagerBattelle Technology Partnership Practice Phone: 614-424-5848E-mail: cummingsd@battelle.org

Full Report and Summary is available at:

www.lsuagcenter.com/southernagbioscienceimpact