Economic Impact of Columbia Basin Project

The regional economic impacts of the CBP were estimated using IMPLAN (Impact Analysis for Planning) by Entrix in 2010, a commonly used economic input-output (I-O) model. For this analysis, three economic models were
constructed using 2006 IMPLAN software and data (the most recent available) and used to estimate economic
impacts of the CBP. The three models were of the study area (Franklin, Adams, and Grant Counties),
Washington State, and the U.S economies.

3 Areas of Economic Impact

• Output: Total value of goods and services produced by business = $3.7 billion in Adams, Franklin, and Grant counties, and $5.8 billion in the nation
• Income: Sum of employment compensation, proprietor income, and property income = $1.6 billion in Adams, Franklin, and Grant counties, and $2.4 billion in the nation
• Employment: Annual average number of employees of businesses producing output = 28,500 in Adams, Franklin and Grant Counties, and 38,900 in the nation 

Irrigated Ag: Who Contributes?

• Ag & forestry support activtites: soil prep, veterinar services, farm and labor management
• Equipment manufacturing
• Container manufacturing
• Storage
• Buyer of ag commodities: frozen food manufacturing, fruit &vegetable canning/drying, animal production, animal slaughter, food processing, wineries

Property Tax Value

• Per Acre-Irrigated: Adams County-$1,559, Franklin County-$1,750, Grant County-$900
• Per Acre-Dry Land: Adams County-$223, Franklin County-$300, Grant County-$204

ADAMS COUNTY:

Regional context

Adams County is the 14th largest county in Washington state, and covers 1,925 square miles. Located in southeastern Washington, it is bounded by Lincoln County on the north, Whitman to the east, Franklin to the south and Grant on the west. Two-thirds of its population is rural as its low population density of 9.4 persons per square mile indicates. Since its creation in 1883, the area has been known as an agricultural and livestock ranching area that continues to prosper today. Wheat, corn, apples and potatoes (among other crops) are grown in Adams County.

The Palouse tribe was well established as the dominant indigenous tribe. They traveled the county, ranging their horses. The first white settlers began arriving in 1869. They found the area suitable to raising cattle, horses and sheep. Others followed, seeking land for ranching and farming.

Adams County saw its first railroad in 1881. Success in wheat farming was noted in 1897, which then spurred settlement, resulting in increasing numbers of wheat farms. By 1909, Adams County described itself as the “bread basket of the world.”

A drought in the late 1920s resulted in many settlers leaving the area. Those who remained consolidated their wheat farms to produce a commercial crop.

Local economy

Adams County started as an agriculturally based area, and is still agriculturally based today. There are both dry-land based crops, such as wheat along with irrigated farming that supports apple orchards and potato fields. Today, Adams County is one of the largest wheat producers in the state.

Being an agriculturally based area, Adams County has various non-durable goods manufacturing, particularly vegetable and fruit processing. The highlight of this type of manufacturing consists of their French fry production, which provides most of the county’s manufacturing employment.

Agriculture, local government and manufacturing (particularly food processing) account for approximately 60 percent of total covered employment in Adams County. The transportation sector is another major area of employment, which aids local agricultural and manufacturing employers.

According to the National Bureau of Economic Research (NBER) the national recession occurred from December 2007 through June 2009. Many counties in Central Washington lost jobs following the recession. Adams County was the exception. Total covered employment increased annual from 2009 (6,771 jobs) through 2012 (7,198 jobs). Why? Agriculture, manufacturing (primarily food processing), wholesale trade and professional and business services all added jobs during calendar years 2010, 2011 and 2012. The 2013 covered employment and wage data looks similar to 2012.

Outlook

The National Bureau of Economic Research (NBER) announced that the national recession occurred from December 2007 through June 2009. The effects of this recession did not hit Adams County’s nonfarm labor market as heavily in 2009 and 2010 as many other central Washington counties and in fact, total covered employment actually rose during calendar years 2010, 2011 and 2012 (as mentioned previously). Basically, agriculture “saved the day” for the Adams County economy during this period. On an annual average basis, nonfarm employment in Adams County:

• Contracted from 5,470 in 2008 to 5,430 in 2009, a 40 job and 0.7 percent decline.
• Dipped from 5,430 in 2009 to 5,410 in 2010, a 20 job and 0.4 percent downturn.
• Rose from 5,410 in 2010 to 5,420 in 2011, a 10 job and 0.2 percent upturn.
• Stabilized at 5,420 jobs in 2011 and in 2012.

November 2013 nonfarm employment estimates (Current Employment Statistics) from the Employment Security Department’s Labor Market and Program Analysis (LMPA) branch show:

• Nonfarm employment in Adams County decreased year-over-year from June through October 2013, but increased 0.9 percent between November 2012 (5,380 jobs) and November 2013 (5,430 jobs).
• Washington's labor market has grown for 38 months (from October 2010-November 2013). In November 2013 total nonfarm employment provided 2,960,900 full- and part-time jobs statewide.

Developing an employment outlook for Adams County can be much more involved than evaluating recent total covered employment and nonfarm employment trends. Nevertheless, according to LMPA’s nonfarm employment projections, the County is expected to grow at an annual pace of 1.3 percent between 2011 and 2021 versus a statewide growth pace of 1.5 percent.

Labor force and unemployment

(Source: Employment Security Department)

Current labor force and unemployment statistics are available on the Labor area summaries page.

The average unemployment rate (not seasonally adjusted) in Adams County in 2010 was 10.0 percent. In 2011 the rate dropped to 9.6 percent and in 2012 it declined eight-tenths of a percentage point further, to 8.8 percent. The lowest average unemployment rate in the County in recent years was in 2007 at 5.9 percent and the highest rate was 14.5 in 1993.

Statewide, unemployment has also decreased since 2010. The annual average unemployment rate in Washington State during 2010 was 9.9 percent. It fell seven-tenths of a percentage point to 9.2 percent in 2011 and dropped one percentage point in 2012, to 8.2 percent.

In Adams County, the unemployment rate has decreased or stabilized year-over-year in 28 of the past 29 months (from July 2011 through November 2013). This November the not seasonally adjusted rate of 8.6 percent was exactly where it was in November 2012.

On an annual average basis, Adams County's Civilian Labor Force (CLF) grew 2.9 percent in 2012 to 8,580 residents, a good economic indicator following a 2.3 percent labor force contraction in 2011. However, Adams County's Civilian Labor Force (CLF) has decreased for the last ten months (from February through November 2013). Even Washington's labor force has not been faring particularly well recently. It stagnated or declined year-over-year in 13 of the past 16 months (August 2012 through November 2013).

In Adams County, between the Novembers of 2012 and 2013 the labor force contracted from 8,080 to 7,930 residents, a 150 resident and 1.9 percent decline. Simultaneously, fewer residents were unemployed in November 2013 versus the same month in 2012 (690 residents were unemployed in November 2012 versus 680 in November 2013). Thus, although the County’s labor force shrank between the Novembers of 2012 and 2013 the number of unemployed also decreased and the Adams County unemployment rate stabilized at 8.6 percent.

Industry employment

(Source: Employment Security Department)

Current industry employment statistics are available on the Labor area summaries page.

The North American Industry Classification System (NAICS) is an industry classification system that assigns every businesses and government organization in America a six-digit NAICS code based primarily on the activities in which that business or government organization is engaged. All business and government organizations may also be more broadly categorized into one of 22 two-digit NAICS sectors. Nineteen sectors are in private enterprise and three sectors are in government service – either at the federal, the state, or the local level. Covered employment and wage trends over the last six years (from 2007 through 2012) were analyzed using the Employment Security Department’s annual average Quarterly Census of Employment and Wage (QCEW) data for the 22 two-digit NAICS sectors in Adams County. Following are some of the findings:

• In 2012, QCEW data showed that Adams County’s labor market provided 7,198 jobs. Almost three-quarters (74.1 percent) of all local jobs were in five (agriculture, local government, manufacturing, retail trade and health services) two-digit NAICS industries or sectors. Hence, the Adams County economy is not very diverse since these five sectors comprise roughly 75 percent of all jobs in the local economy. Nearly one quarter of covered employment was agricultural.
• In 2012, approximately $249.5 million of wage income was paid countywide. Agricultural employers provided 20.9 percent of it, or $52.1 million. Local government was a close second accounting for 20.5 percent or $51.2 million. Agriculture and local government combined provided four out of every ten dollars of wages earned in Adams County during 2012.
• Between 2007 and 2012, the industry in Adams County which added the most jobs was agriculture. In 2007 agricultural provided 1,388 jobs, 20.7 percent of total covered employment. By 2012 this industry tallied 1,748 jobs and accounted for 24.3 percent of all covered employment countywide. This 360 job and 25.9 percent uptrend indicates not only is the agricultural industry key to the Adams County economy, but that its “footprint” in the local labor market has grown in the past five years.
• Between 2007 and 2012, the industry that lost the most jobs was accommodation and food services (primarily hotels and restaurants). This sector provided 411 jobs and 6.1 percent of total covered employment in 2007. By 2012, accommodation and food services accounted for only 362 jobs or 5.0 percent of all covered employment.

For historical industry employment data, contact an economist.

ADDITIONAL RESOURCES

Ag Economic Impact Fact Sheet

Economic and Fiscal Contribution of Agriculture Irrigated by the Columbia Basin Project (CBP) 

New study shows agriculture is Grant County's biggest money maker
July 2013 article from Columbia Basin Herald