Economic Importance of Minnesota's Dairy Industry
V. Income Impacts
Dairy production and processing affect income as well as employment in Minnesota.20 In 1997, dairy producers and processors earned incomes of $1,022 million. This income is comprised of four components: employees' wages and salaries, self-employment payments, indirect business taxes, and other property incomes. Employees' wages and salaries along with self-employment payments encompass all employees in all occupations within the industry. Employees' wages and salaries are 50% of total income, while payments for self-employment constitute 9.3%. Indirect business taxes, which include sales and excise taxes, are a small fraction of total income, 7.3%. Other property-type income includes returns to capital, interest payments, and corporate profits. This is about 33.4% of income.
As is the case with employment, there is more income earned by the spin-off sectors than earned directly within the dairy industry. Just under half (42%) of the total income generated by the dairy industry is earned directly in production and processing. Another major portion (41%) of the total income is created within the supply industries, and a final 17% is induced by employees working for either the dairy industries or the supply industries. Figure 9 depicts the breakdown of income impacts.
| Figure 9. Income Generated by Dairy Industry, Minnesota 1997 |
 |
| Source: IMPLAN estimates by authors. |
|
Produced by Communication and Educational Technology Services, University of
Minnesota Extension.
In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Please contact your University of Minnesota Extension office or the Extension Store at (800) 876-8636.
University of Minnesota Extension is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, color, creed, religion, national origin, sex, age, marital status, disability, public assistance status, veteran status, or sexual orientation.
The information given in this publication is for educational purposes only. Reference to commercial products or trade names is made with the understanding that no discrimination is intended and no endorsement by University of Minnesota Extension is implied.
|
