Mapping the Agricultural Assets of Hancock County Tennessee

W 794

Mapping the Agricultural Assets of Hancock County Tennessee

UT Institute of Agriculture Center for Profitable Agriculture A By: David W. Hughes,1 Hannah Wright,2 and Jacob Boone3 Tennessee Extension Service 1Contact Author, Professor and Greever Endowed Chair in Department of Agricultural

Agribusiness Development and Resource Economics 227B Morgan Hall 2 Extension Specialist, Department of Agricultural and University of Tennessee Resource Economics, University of Tennessee Knoxville, TN 37996 3Extension Agent and County Director, University of [email protected] Tennessee Extension Service Phone: 865-974-7463

NOVEMBER 2018

Support for the research presented in this document was provided by the Tennessee Office of Rural Development, U.S. Department of Agriculture, the Tennessee Department of Agriculture and Farm Credit Mid-America.

B UT Institute of Agriculture Center for Profitable Agriculture Mapping the Agricultural Assets of Hancock County Tennessee Introduction Presented here is an agricultural asset mapping Background on Hancock County report for Hancock County, Tennessee. The report Rich in Melungeon and Appalachian history, is based on a combination of focus group meetings Hancock County is in northeastern Tennessee, with local agricultural leaders and secondary data. bordering Virginia. It is 223 square miles with The primary goal is to help local leaders identify highways 31, 33 and 68 crossing the county agricultural assets that could be used to support area. The town of Sneedville serves as the economic growth and development in Hancock county seat and is the only incorporated town. County. A secondary goal is to increase the Other significant communities include Kyles understanding of agriculture in the county. Finally, Ford, Mulberry Gap, Treadway, Thompson Mill we feel that the approach discussed here could and Vardy (Hancock County Government, 2018). be replicated in other interested counties. Initially provided here is a discussion regarding general The mostly rural population of Hancock County information about Hancock County, followed by in 2016 was 6,577. As of 2016, the U.S. Census information regarding the asset mapping exercise Bureau reports there are 2,751 households with with local agribusiness leaders. The follow-up an average of 2.34 persons per household. The data-based analysis is then discussed including median household income is $27,973 with 30.9 recommendations based on that analysis. Next percent of Hancock County citizens below the we discuss the agribusiness targets that were poverty line (U.S. Census Bureau, 2012-2016 identified by local leaders, followed by summary American Community Survey 5-Year Estimates). and conclusions. As shown in Figure 1, the population has declined slightly since 1969 (U.S. Bureau of Economic Analysis, 2016).

UT Institute of Agriculture Center for Profitable Agriculture 1 Figure 1. Hancock County Population and Per Capita Income, 1969-2016.

The mostly rural population of Hancock County in 2016 was 6,577.

Source: Bureau of Economic Analysis, 2018.

Agriculture production in acres devoted to agriculture, patterns still hold. The top Hancock County makes a 39.5 percent was utilized as commodities for Hancock significant contribution to pasture, 33.2 percent was in County include cattle and calves the county’s economy. As of woodland, and 24.2 percent was (with 14,330 head) and hay (with 2012, there were 457 farming planted in crops. A Cropscape 10,784 acres). Hancock County operations with an average map (Figure 2) (U.S. Department was eighth among all Tennessee size of 141 acres (Census of of Agriculture, 2018) for 2017 Counties in sheep and lamb Agriculture). Among the 64,395 indicates that these land use production with 1,104 animals.

Figure 2. Hancock County Land Cover Map, 2017. (Source: U.S. Department of Agriculture)

The top commodities for Hancock County include cattle and calves (with 14,330 head) and hay (with 10,784 acres).

2 UT Institute of Agriculture Center for Profitable Agriculture Mapping the Agricultural Assets of Hancock County Tennessee

Based on data from an to the agriculture-based Project 95 economic model of the county economy of Hancock County. economy for 2015 (Minnesota While the county has a sawmill On a more positive note, under IMPLAN Group, Inc. 2000), and a wood yard, the loss of the leadership of the Tennessee the beef cattle industry had a a wood truss factory in 2016 Department of Economic and total revenue of $5,670,830 has had a significant negative Community Development and provided 173 jobs. Beef impact on the economy. Project 95 combines resources cattle had an employment- from 14 federal partners and based location quotient (LQ) state agencies to establish a value of 14.6, meaning that ...agribusiness activity comprehensive program to encourage economic growth beef cattle are almost 15 in Hancock County times more important to the in Hancock County as a Tier local economy than to the showed a total direct Four community (Tennessee United States economy.1 All contribution of 415 Department of Economic and Community Development, other crop farming (primarily jobs and $17 million hay production) accounted 2018b). This partnership Source: Bureau of Economic Analysis, 2018. for 202 jobs, had total in output and total offers tailored community and revenue of $2,755,922 and an impact of $20.7 million workforce assistance programs for the residents of Hancock employment-based LQ value of in output and 479 jobs 22.4. Greenhouses and nursery, County. A recent outcome and floriculture production is (or 22.3 percent of all of the Project 95 Initiative another agriculture sector of employment in is Allied Dispatch Solutions, LLC’s new micro call center note with a LQ of 21.7 and the county). $1,761,408 in total revenue. that is expected to create more than 100 jobs. The An economic impact analysis 18,000-square-foot call center conducted for all agribusiness Hancock County is currently a will be located in the Hancock activity in Hancock County Tier Four Tennessee Economy County Industrial Park (Hancock showed a total direct Development County and County Government, 2018a). contribution of 415 jobs and an Appalachian Region With headquarters in Johnson $17 million in output and total Commission distressed county, City, Tennessee, Allied Dispatch impact of $20.7 million in output meaning it ranks at or near the Solutions is one of the nation’s and 479 jobs (or 22.3 percent of bottom of Tennessee counties leading roadside assistance all employment in the county) in poverty rate, unemployment companies. The company (Hughes et al. 2018). rate, per capita income, and operates 24/7 and handles in other economic indicators excess of 3 million inbound and Kiefer Aluminum Livestock (Tennessee Department of outbound calls per year.2 and Horse Trailers is one of Economic and Community the county’s largest employers Development, 2018a). with 35 employees and a 60,000-square-feet facility. Clear Creek Feed Mill and Circle V Farms are contributors

1The Location quotient (LQ) is a way of quantifying how concentrated a particular industry, cluster, occupation, or demographic group is in a region as compared to the nation (Sentz, 2011). It is the industry in question’s share of the local or regional economy versus its share of the national economy. In our analysis, we use output, number of establishments, jobs, and earned income to estimate LQs.

2The call center will also have counseling for substance abuse, a major problem in the area.

UT Institute of Agriculture Center for Profitable Agriculture 3 Asset Mapping areas as they pertain to local assets (blue), challenges (yellow), Exercise agriculture or agribusiness. The and possible opportunities participants were recruited by (green) are available throughout An agricultural asset mapping Jacob Boone, University of the county (Figure 3). We exercise was held with county Tennessee Extension agent and present the challenges and the agricultural leaders on April 10, county director, and represented opportunities offered by the 2018. Participants were asked agricultural leadership in participants in the following to think about opportunities for Hancock County. Participants sections. the county such as local and were given dots to place where regional markets and target local businesses (red), physical

Figure 3. Map of Local Businesses, Assets, Opportunities and Challenges as Identified by Local Hancock County Agricultural Leaders (Asset Mapping Exercise).

32 7 8 24 Mulberry Gap Vardy 10 30 Thompson Mill 9 24 17 31

24 22 14 21 12 24 16 6 15 13 24 25 LEGEND Claiborne 27 11 Local Businesses 26 28 23 29 Physical Assets

18 Opportunities Hawkins Challenges 4 20 1 3 2 19 5

Grainger

LEDGER

1. Cabins 9. Mahalia Mullins’ 15. Hancock County 23. Berries and Nuts 2. Bed & Breakfast Cabin/Moonshine Government Offices 24. Fishing-based, other history 3. Apple Orchard and 16. Hancock County nature, heritage Cidery 10. River Place on the Hospital tourism Clinch 4. Hay Production 17. Historical Vardy School 25. Farmers Market 11. Mary Seal Logging and 18. Xenophon 26. Using Wood Wastes 5. Hippie Joe’s Sawmill Vegetables 19. Elrod Falls 27. Fertilizer Mixing Plant 12. Project 95- Micro Call 6. Kiefer Aluminum Center 20. Livestock Slaughter 28. Winery Livestock and Horse 21. Farm Input 29. Sheep Trailers 13. Hancock Farmers’ Co- operative Manufacturer 30. Talley Bridge 7. Clear Creek Feed Mill 14. Greene’s Tractor 22. County Agricultural 31. Clinch River 8. Circle V Farms Company, LLC. Fair and Festival 32. Powell River

4 UT Institute of Agriculture Center for Profitable Agriculture Mapping the Agricultural Assets of Hancock County Tennessee

Challenges More educated young people Wood Waste leaving the county for better Hancock County faces several Commercial logging occurs in opportunities elsewhere challenges that were identified the county and there is also a remains a major issue. by meeting participants, sawmill (Marty Seal Logging and particularly isolation and In general, participants want to Sawmill Company in Sneedville) lack of connectivity. Hence, recruit county-wide industries, and a wood yard (Seal Wood road improvement and particularly those with at least Yard also in Sneedville). telecommunication infrastructure some well-paying jobs. Participants believed there could are major needs. Access into be a way to capture a market for the county is limited as well the wood waste generated by as broadband internet access. 50 percent of these activities. Parts of the county are served by high-speed broadband internet, county lacks high but 50 percent of the county speed broadband Slaughterhouse/Processing lacks such connectivity. Internet. Facility Highways 31, 33 and 63 Hancock County is a significant go through the county and beef-producing county. The Highway 70 intersects the closest slaughter facility is Opportunities northern part of the county, in Bean Station (Grainger but the road system is also a Workshop participants County), but its future is in challenge. Motorists typically identified several opportunities doubt (Knox News, 2018). do not drive through Hancock for development including There are also two slaughter County to go to another utilizing wood waste, a facilities in Greeneville (Greene destination. The mountainous livestock slaughter (processing) County), roughly 60 miles from terrain does not allow for easily facility, and a fertilizer plant Sneedville. Hence, participants accessible roads. The roads (Figure 3). Participants also thought that a slaughterhouse are narrow and curvy in many identified aquaculture and could be a possible venture. places making interaction fishing, a county fair, various They felt the facility could within the county and with types of agritourism, and be located on Highway 31 other areas more difficult. tourism in general as ways to between Treadway and However, motorcycle riders do facilitate growth. Sneedville or at Thompson Mill. like to ride on the curvy roads in the county.

UT Institute of Agriculture Center for Profitable Agriculture 5 Fertilizer Plant Agritourism Farmers Market Hancock County participants With the growing demand for expressed an interest in and locally produced products, need for a fertilizer plant. Wineries, Pick-Your-Own an area farmers market could The fertilizer plant could be a Locations and Lodging be used to develop local blending facility for chemicals, Sneedville, Treadway, Mulberry agriculture and stimulate the mulch, stone and other and other parts of the county local economy. As discussed products for use on pastures have tourism and agritourism in the initial Hancock and lawns. The plant could assets that could be developed County meeting, officials be housed with the Hancock in a sustainable manner. and agriculture industry Famers Co-Op. Rogersville Agritourism possibilities representatives are interested (Hawkins County) has a bulk discussed by meeting in starting a farmers market fertilizer plant as part of the participants included a winery, for Sneedville and surrounding Hawkins Farmers Co-Op. lodging facilities, farm-to-table area residents. restaurants and pick-your- own farms. The county has Aquaculture and Fishing an established winery in the County Fair K-Springs area with interests With the abundance of Meeting participants, including in expansion. In the Rebel water natural resources, Hancock County officials, want Hollow area, Jodie Moore Hancock County is interested to consider developing an Farms is a pick-your-own berry in increasing fishing and annual county fair. Establishing farm and has plans to open aquaculture. The county has a county fair would raise a farm-to-table restaurant. A several creeks as well as the awareness of the agriculture cabin development is in the Powell and Clinch Rivers. There assets of Hancock County early stages for lodging in is also Tennessee Wildlife and increase opportunities for the Mulberry community, and Resources Agency (TWRA) land agritourism across the region. cabins are also available at in the county on the Clinch Kyles Ford. River at Kyles Ford (Nature Conservancy, 2018).

6 UT Institute of Agriculture Center for Profitable Agriculture Mapping the Agricultural Assets of Hancock County Tennessee

Downtown Restaurant Built in 1928, the Edward R. Internet Connectivity/ Talley Bridge is a Warren Truss Mobile Hotspots Sneedville/Hancock County bridge (with latticework, a typical does not have a fine-dining, Broadband internet access is subdivided design, and an “X” steakhouse-type restaurant. needed. Parts of the county railing constructed for low speed County officials and meeting are served by high-speed resistance). Replacing a toll participants would like to see broadband internet, but ferry, the bridge now serves as a one open so that tourists do 50 percent of the county walking bridge (Hancock County not have to leave the county to lacks internet connectivity. Government, 2018b). have a “sit-down” meal. The Hancock County shares restaurant could feature locally a $1.3 million Tennessee produced and raised products Broadband Accessibility grant in the historic downtown area, Hancock County with Claiborne County under possibly using the Made in the Tennessee Broadband Appalachia Products logo. shares a $1.3 million Accessibility Act (TBBA) of Tennessee Broadband 2017. The grant is designed to Accessibility grant with offset the capital expenses in the deployment of broadband General Tourism Claiborne County. in unserved areas (Hancock County Government, 2018a). Hancock County leadership is Terrain, Trails, Natural seeking further funding under Resources and Historical Other Opportunities this Act. The public library Heritage system of Hancock County is also participating in a University Working in conjunction with Solar Energy of Tennessee Extension the Tennessee Department program to increase web access of Tourism, Hancock County Several businesses and the for local businesses where is developing a Spider route schools in Sneedville have solar mobile hotspots are available to motorcycle map (Hancock panels through Aries Energy, residents at no cost. Residents County Government, 2018a). which is based in Knoxville. in good standing may check A discussed transportation The town of Sneedville has an out a mobile hot spot for two improvement was re-surfacing average annual solar radiation to three days on a first-come- the Vardy-Blackwater Road value of 4.57 kilowatt hours per first-served basis (Hancock to ease travel in that part square meter per day (kWh/ County Government, 2018a). of the county and, thereby, m2/day) (Hancock County The Appalachian Regional encourage tourism. Government, 2018a). There are Commission’s downtown wifi opportunities for expansion program is an opportunity Rugged terrain also lends itself and community members are that Hancock needs to take for expanded all-terrain/off- interested. road vehicle trail promotion. advantage of (Tennessee All-terrain vehicles could be Department of Agriculture, employed on a system of 2018c). developed trails.

UT Institute of Agriculture Center for Profitable Agriculture 7 Follow-up Analysis County, Tennessee, that will period, the nominal value of and Discussion generate 12 jobs initially cattle sales increased from and possibly up to 70 jobs $50 million to $55.4 million A subsequent meeting was ultimately (Bolivar Bulletin for the region but declined held with Hancock County Times, 2018). Royal Oak is the in Hancock County from $5.9 agricultural leaders on number one hardwood lump million to $4.7 million. While September 27, 2018. The charcoal producer in the United the cattle sold from the county discussion centered on States. Meeting participants and the region are primarily assessing the agricultural were asked to consider six to nine-month-old calves assets discussed in the prior investigating such a business from cow-calf operations, there meeting and on the results of as a recruitment target. is some interest in finishing our data analysis. Participants expressed concerns cattle. This interest is based on about possible environmental the growing interest in local impacts. This should be a foods and to a lesser degree Wood Waste strong consideration if the in pasture-raised cattle. Other community decides to move livestock operators (sheep and Three sawmills and five forward with the project. goats) are also interested in timber operations were the local foods market. Hughes identified in the regional data et al. (2017) indicate that a analysis (Hancock County United States Department of plus neighboring Tennessee A farmers market Agriculture approved custom counties). These operations can make Hancock livestock slaughter facility could generate a considerable County a more be profitable under the right amount of wood waste. conditions. Accordingly, such Businesses that utilize wood attractive place to a facility was also mentioned waste were, therefore, live and work, as local as a potential target for identified as a possible growth development. opportunity. Such businesses consumers benefit fall into the Recyclable Materials and local social Merchants (423930) in the ties may also be Fertilizer Plant industry classification system. strengthened. Nationally from 2007 to 2017, A fertilizer blending operation the number of establishments was also mentioned by in this industry grew by 6.3 meeting participants as a local percent but employment opportunity. The Hawkins declined by 10.4 percent. In Livestock Slaughter Facility Farmers’ Co-Operative has a the region, the number of bulk fertilizer blending plant According to Census of establishments doubled from in Rogersville. Such a plant Agriculture data, 73,304 cattle three to six, and the number could be operated by the and calves were sold from of jobs increased from two Hancock Farmers’ Co-Operative. Hancock County and the four to 39. An example of one of Nationally, the number of surrounding counties in 2012, these operations is charcoal such fertilizer mixing grew by a decrease of 15.5 percent producers, such as Royal Oak, 5.4 percent from 2007-2017 from 86,791 in 2007. For that use hardwood scraps as with growth in employment of Hancock County, 9,684 cattle their major raw input. Royal 4.8 percent and real (inflation were sold in 2007 and 6,734 Oak recently announced a $15 adjusted) pay of 29.5 percent. million project in Hardeman were sold in 2012, a decline of 30.5 percent. Over the same

8 UT Institute of Agriculture Center for Profitable Agriculture Mapping the Agricultural Assets of Hancock County Tennessee

Annual County Agricultural Farmers markets also increase recently developed several Fair and Farmers Market farm incomes, the retention successful wineries. of local dollars, and can bring An annual agricultural fair in the dollars in from elsewhere. The area is probably well-suited county would raise awareness A farmers market can make to growing certain wine grapes of local agriculture assets and Hancock County a more such as Chambourcin (a red increase the opportunities for attractive place to live and grape variety). A new regional local agritourism by drawing work, as local consumers resource is the Appalachian outside visitors. County benefit and local social ties may Region Wine Producers government leadership has also be strengthened. Association that is in the also expressed interest in process of developing an developing such a fair. As American Viticulture Area for shown in Figure 4, Claiborne the region (Nine Lakes Wine Agritourism County is the only neighboring Country) and is responsible Tennessee county with an Several agritourism type for two wine trails (2018). The annual agricultural fair. Similarly, opportunities identified by University of Tennessee also a local farmers market would meeting participants included has experts available to assist in also raise awareness of local a winery, a farm-to-table developing a winery. agriculture assets, increase restaurant, and a pick-your-own A farm-to-table restaurant is the opportunities for local farm. Apple Hill Orchard in another potential local asset agritourism, and also has local Treadway was identified as one that could be developed. political support. current pick-your-own farm for Resources that could support apples. A resource for County the development of such a Figure 4. 2017 Tennessee U-Pick operations includes the resource include the Pick TN Agriculture Fairs Northeast Tennessee U-Pick Farm and Restaurant Alliance Farms Group (2018). (Tennessee Department of 2017 TENNESSEE AGRICULTURAL FAIRS

Springfield Lafayette Celina Agriculture, 2018b), which Union City Oneida Gallatin Jamestown Tazewell Livingsto Friendly Farm is a dairy goat n Gray Paris Hartsville WASHINGTON Erin Carthage Ashland Nashville Dickson City Lebanon Jefferson Dyersburg Waverly Huntington Cookeville Greeneville Trenton Clinton Camden Wartburg Alexandria Crossville Knoxville Sparta Franklin Newport provides a farm-to-restaurant Sevierville Ripley operation that provides a variety Centerville Jackson McMinnville MILES Decaturville Columbia Lexington Spencer Pikeville 0 10 20 40

Hohenwald Manchester Dayton Athens Shelbyville Dunlap Decatur Lawrenceburg guide with a restaurant list on Memphis Savannah SEQUATCHIE Selmer Pulaski LEGEND FOR FAIR DIVISIONS Fayetteville Winchester of agritourism activities including Benton Jasper A AA AAA Regional State Chattanooga Note: Fair Divisions are based on county population Locational Map of Tennessee’s Fairs baby cuddling day and other the Pick TN Products website MIDDLE TENNESSEE WEST TENNESSEE EAST TENNESSEE No. Middle Tennessee Fairs City Division Year Estab. No. West Tennessee Fairs City Division Year Estab. 1 Bedford Co. Fair ...... Shelbyville ...... AA ...... 1997 No. East Tennessee Fairs City Division Year Estab. 1 Benton Co. Fair...... Camden ...... A ...... 1926 1 Anderson Co. Fair ...... Clinton ...... AAA ...... 1889 and mobile app. Both food 2 Cheatham Co. Fair ...... Ashland City ..... AA ...... 1947 2 Carroll Co. Fair...... Huntingdon ...... AA ...... 1906 3 Clay Co. Fair ...... Celina ...... A ...... 2001 2 Appalachian Fair (Washington Co.) ...... Gray...... Regional ...... 1858 family-oriented activities (2018). 3 Decatur Co. Fair ...... Decaturville ...... A ...... 1949 4 Coffee Co. Fair ...... Manchester ...... AAA ...... 1857 3 Bledsoe Co. Fair ...... Pikeville ...... A ...... 1919 4 Dyer Co. Fair ...... Dyersburg ...... AA ...... 1869 5 DeKalb Co. Fair ...... Alexandria ...... A ...... 1856 4 Claiborne Co. Fair ...... Tazewell ...... AA ...... 1957 5 Gibson Co. Fair ...... Trenton ...... AAA ...... 1856 6 Dickson Co. Fair ...... Dickson ...... AA ...... 1924 5 Cocke Co. Fair ...... Newport ...... AA ...... 1947 6 Hardin Co. Fair ...... Savannah ...... AA ...... 1952 7 Franklin Co. Fair ...... Winchester ...... AA ...... 2007 6 Cumberland Co. Fair ...... Crossville ...... AAA ...... 1945 7 Henderson Co. Fair ...... Lexington ...... AA ...... 1932 8 Giles Co. Fair ...... Pulaski ...... AA ...... 1950 7 Fentress Co. Fair ...... Jamestown ...... A ...... 1924 service members and farm 8 Henry Co. Fair ...... Paris ...... AA ...... 1954 9 Hickman Co. Fair ...... Centerville ...... AA ...... 1998 8 Greene Co. Fair...... Greenville ...... AAA ...... 1949 9 Lauderdale Co. Fair...... Ripley ...... AA ...... 2004 10 Houston Co. Fair ...... Erin ...... A ...... 2007 9 Hamilton Co. Fair ...... Chattanooga .... AAA ...... 1989 10 McNairy Co. Fair ...... Selmer...... AA 11 Humphreys Co. Fair ...... Waverly ...... AA ...... 1903 10 Jefferson Co. Fair...... Jefferson ...... AAA ...... 1943 11 Obion Co. Fair ...... Union City ...... AA ...... 1957 12 Lincoln Co. Fair ...... Fayetteville ...... AA ...... 1903 11 Marion Co. Fair ...... Jasper ...... AA ...... 1996 12 West Tenn. State Fair (Madison Co.) ...... Jackson ...... AAA ...... 1855 13 Macon Co. Fair...... Lafayette ...... AA ...... 1982 12 Meigs Co Fair ...... Decatur ...... A ...... 1920 A potential asset would be the 13 Delta Fair ...... Memphis...... 2007 14 Maury Co. Fair ...... Columbia ...... AAA ...... 1948 13 Morgan Co. Fair ...... Wartburg ...... A ...... 1950 members can apply for the 15 Middle Tenn. 14 Polk Co. Fair ...... Benton ...... A ...... 1990 District Fair (Lawrence Co.) ...... Lawrenceburg .. AA ...... 1911 15 Rhea Co. Fair ...... Dayton ...... AA ...... 2006 STATE 16 Overton Co. Fair ...... Livingston ...... A ...... 1938 16 Scott Co. Fair ...... Oneida ...... AA ...... 1926 17 Putnam Co. Fair ...... Cookeville ...... AAA ...... 1926 17 Sequatchie Co. Fair ...... Dunlap ...... A ...... 1938 18 Robertson Co. Fair ...... Springfield ...... AAA ...... 1867 18 Sevier Co. Fair ...... Sevierville ...... AAA ...... 1935 development of a winery in the Tennessee State Fair ...... Nashville ...... State ...... 1906 19 Smith Co. Fair ...... Carthage ...... A ...... 1989 19 Tennessee Valley Fair (Knox Co.) ...... Knoxville ...... Regional ...... 1919 program online. 20 South Central Area Fair (Lewis Co.) ...... Hohenwald ...... A ...... 1922 21 Sumner Co. Fair...... Gallatin ...... AAA ...... 1946 22 Tennessee State Fair (Davidson Co.) ...... Nashville ...... State ...... 1906 23 Trousdale Co. Fair ...... Hartsville ...... A ...... 1955 24 Van Buren Co. Fair ...... Spencer ...... A ...... 1914 TENNESSEE TENNESSEE DEPARTMENT county as nearby areas have 25 Warren Co. Fair ...... McMinnville ...... AA ...... 1953 ASSOCIATION OF AGRICULTURE OF FAIRS 26 White Co. Fair ...... Sparta ...... A ...... 1855 MARCH, 2017 27 Williamson Co. Fair ...... Franklin ...... AAA ...... 2005 28 Wilson Co. Fair...... Lebanon...... AAA ...... 1853

UT Institute of Agriculture Center for Profitable Agriculture 9 Finally, a related topic is lodging Fishing-based or other tourism fishing. An example of a guided in the county. In our 2015 could be developed based fishing business can be found model of the county economy, on the several creeks and the for the Elk River in West Virginia no lodging is listed. However, two rivers (the Powell and (Elk Springs, 2018). cabins are available at the Clinch the Clinch) in the county. The River Conservation Center and Richardson “Byrd” Creek is Retreat (2018) in Kyles Ford stocked by the Tennessee Other Nature-Based, as discussed in the general Wildlife Resources Areas Heritage, General Tourism tourism section. The model does (TWRA) on an annual basis estimate that local restaurants (2018). Kyles Ford is an 850- Other tourism assets include provided 20 jobs and had $1.4 acre Tennessee Wildlife the Spider route motorcycle million in sales in 2015. Management Area on the map that has been developed Clinch River. According to the by local county leadership Aquaculture and fishing were Nature Conservatory (2018), its (Motorcycle Roads.com, 2018). also identified as possible shallow shoals are home to 35 The area already has some assets for further development. species of mussels, more than notoriety among motorcycle Aquaculture belongs to the any other place on earth. A enthusiasts and the new map Finfish Farming and Fish related asset is lodging for one should attract additional Hatcheries industry classification. large or several small groups at riders. As ridership grows, No private employment was the Clinch River Conservation the opportunity may arise to reported for that sector in Center and Retreat (Clinch- develop a formal trail similar Tennessee in 2017. Nationally Powell Resource Conservation to the wine trail concept. from 2007 to 2017, the number and Development Council, Adopting that idea, the spider of establishments in the sector 2018). Businesses that could trail could be used to link local declined by 8.4 percent, while be developed based on these hospitality-oriented businesses total employment dropped resources include guided river and other tourism assets that by -17.5 percent and total float trips, especially on the are connected by this roadway real (inflation adjusted) payroll Clinch River, or guided fly in a geographically defined declined by 2.0 percent. area in a manner very similar

10 UT Institute of Agriculture Center for Profitable Agriculture Mapping the Agricultural Assets of Hancock County Tennessee

to a wine trail (Wargenau included in the tourism park featured by the Appalachian and Che, 2006). Official state renovations provided through Quilt Trail (2018) including many highway signage could be the Local Parks and Recreational agritourism venues (Hancock used to promote the trail and Fund (LPRF) grant (Tennessee County Government, 2018b). related businesses and other Department of Environment and tourism assets (White, 1993). Conservation, 2018). The grant Hancock County is “Home of is funded by the Tennessee the Melungeons,” thought Other tourism assets include Department of Environment to be a tri-racial group of Elrod Falls, only a 10-minute and Conservation and people with European, Native drive from Sneedville, administered by the Recreation American and African ancestry consisting of three cascading Educational Services division. who settled the area in the late falls totaling more than 100 The LPRF program provides 1700s. This group is rooted feet and seen as one of the state funding that maybe used in moonshine history and most gorgeous waterfalls in for trail development and Appalachian folklore. Several East Tennessee. There are also capital projects in parks, natural books have been written two hiking trails available of areas and greenways. regarding the Melungeons various lengths at Kyles Ford. and the Vardy Community One is the moderately difficult Heritage tourism assets include School is a heritage tourism Cabin Loop Trail located the Appalachian Quilt Trail, site tied to the education of behind The River Place cabin where wooden quilt squares that community (Hancock rentals. The second is the hanging on various barns County Government, 2018b) Kyles Ford Falls Trail that gives and structures seen in some (Wikipeida, 2018). The hikers two options for different counties in West Tennessee, Appalachian Quilt Trail and difficulty and lengths (Northeast many counties in Middle Vardy Community School Tennessee Waterfalls, 2018) Tennessee, Hancock County, represent assets that could be (Hancock County Government, and most other counties in East used in developing heritage 2018b). Electricity and Tennessee and Southwestern tourism-based businesses. improved lighting sources are Virginia. Nearly 800 sites are

UT Institute of Agriculture Center for Profitable Agriculture 11 Targeted Industry Economic Agricultural Processing and Regionally, 18 wood and Cluster Approach Input Providers paper product manufacturing establishments (1,133, 321 and We used a targeted industry Based on the three criteria, 322) in the region reported approach to identify industries we evaluated relevant food a total of 884 jobs and $43.3 as possible assets. In some processing, wood product, million in salary and wages cases, our analysis dovetails paper product and furniture (Table 1). While the regional with the assets identified by manufacturing sectors for further industry suffered a marked local agricultural leaders. development. We also evaluated decline in the number of Based on secondary data the providers of major inputs establishments (21.7 percent sources, we examined including agricultural services from 23 to 18), employment industries based on number of providers, agricultural chemical only declined slightly (from 896 establishments, concentration producers and agricultural to 884 or 1.7 percent and real (location quotients greater than machinery producers. wages rose by 47.4 percent. 1.5 for establishments, jobs and The decline in establishments pay), and regional growth and was concentrated in the number U.S. for 2007 versus 2017 (for Wood Products, Paper of logging operations, which establishments, jobs and pay).3 Products and Furniture dropped from eight to five. Manufacture Employment (207.7 percent) Nationally, wood products and wage (349.2 percent) Eighteen wood manufacturing, paper products growth was concentrated in manufacturing and furniture sawmills. The small cut stock, and paper product manufacturing overall resawing lumber, and planning manufacturing experienced large declines sector also experienced growth establishments in in number of establishments, in jobs (144.2 percent) and wages (228.8 percent). the region reported employment and wages. Among specific sectors, only Wood products manufacturing a total of 884 jobs All Other Miscellaneous Wood was important to the regional Product Manufacture in terms of and $43.3 million in economy as measured by wages, sanitary paper product salary and wages. location quotients. The manufacturers (number of employment and wage location establishments), and customer quotient for wood product architectural workwood and manufacturing (321) was 11.46 milwork manufacturing (in terms and 16.43. Paper products had of establishments, jobs and smaller employment (1.38) and wages) experienced growth wage (2.32) location quotients. among these industries. No furniture and related products manufacturing was identified in the region.

3The justification for our approach is provided in the companion document “Examining Industry Targeting for Agriculture in Rural Counties.”

12 UT Institute of Agriculture Center for Profitable Agriculture Mapping the Agricultural Assets of Hancock County Tennessee

Table 1. Regional Wood and Paper Products in Hancock County Region.

Naics Code, Title Regional Levels 2017 Location Quotients Regional Growth, 2007-2017 US Growth, 2007-2017

Naics Title Establish- Jobs Wages Establish- Jobs Wages Establish- Jobs Wages* Establish- Jobs Wages* ments ments ments ments 1133 Logging 5 11 182,948 4.22 1.29 0.69 -37.5% -67.1% -81.2% -19.0% -18.0% -10.9% 321 Wood product 12 876 35,985,599 5.72 11.46 16.43 -20.0% -9.0% 26.8% -16.0% -22.9% -16.7% manufacturing 321113 Sawmills 3 105 3,809,602 6.60 7.36 8.04 -25.0% 207.7% 349.1% -17.1% -17.4% -9.6%

3212 Plywood, 1 11 211,076 4.32 0.79 0.45 0.0% -53.3% -62.2% -25.9% -27.8% -21.1% engineered wood product 321214 Truss 1 11 211,076 8.53 2.11 1.38 0.0% -53.3% -62.2% -30.0% -26.9% -26.9% manufacturing 3219 Other wood 8 670 31,964,921 5.94 17.13 27.01 -20.0% -16.9% 18.5% -13.8% -23.3% -18.7% product manufacturing 32191 Milwork 1 12 486,237 2.05 0.69 0.86 0.0% 144.1% 228.8% -26.0% -30.3% -26.2% 321912 Cut stock, 1 12 486,237 13.03 5.24 7.44 0.0% 144.1% 228.8% -21.4% -21.7% -14.0% resawing lumber, planing 321192 Wood 2 43 1,427,030 4.81 4.17 5.18 -33.3% -29.3% -11.6% -8.9% 1.5% 13.4% container and pallet 32199 All other wood 5 615 30,051,654 11.28 55.38 88.27 -16.7% -16.9% 19.2% -28.1% -22.9% -22.9% product 321991 Manufactured 4 602 29,524,850 92.50 137.32 217.38 -20.0% -18.4% 17.4% -36.2% -31.7% -31.7% home, mobile home 321992 Prefabricated 1 13 526,804 9.59 5.28 6.64 U/D** U/D U/D -40.2% -36.9% -36.9% wood buildings 322 Paper 1 87 7,088,940 1.29 1.38 2.32 U/D U/D U/D -14.3% -19.5% -15.7% Manufacturing 3222 Converted paper 1 87 7,088,940, 1.51 1.38 3.48 U/D U/D U/D -14.5% -17.0% -12.2% product *Growth is based on real (i.e., inflation adjusted) values. ** U/D is undefined.

UT Institute of Agriculture Center for Profitable Agriculture 13 Table 2. Regional Food Processing and Agricultural Input Providers in Hancock County Region.

Naics Code, Title Regional Levels 2017 Location Quotients Regional Growth, 2007-2017 US Growth, 2007-2017

Establish- Jobs Wages Establish- Jobs Wages Establish- Jobs Wages* Establish- Jobs Wages* ments ments ments ments

311 Food 2 38 2,096,007 0.42 0.14 0.22 200.0% 1268.7% 1268.7% 17.3% 7.7% 16.1% manufacturing

311611 Animal, 2 38 2,096,007 9.29 1.58 2.75 200.0% 1268.7% 1268.7% -11.6% -4.7% 10.5% except poultry, slaughtering

1152 Support 3 8 242,824 3.75 1.59 1.77 -25.0% -17.7% -30.5% 11.4% 6.2% 12.2% activities for animal production

3331 Agriculture, 2 31 1,684,210 3.34 0.87 0.90 0.0% 9.1% 128.4% 17.7% 11.4% -7.2% construction, mining machinery

336214 Travel 4 84 4,144,414 36.33 10.80 13.82 33.3% 48.6% 88.9% -13.7% 1.3% 24.3% trailer and camper manufacturing *Growth is based on real (i.e., inflation adjusted) values

Food Processing and Input and camper manufacturing while those with stronger Providers (336214) showed a strong linkages purchased at least 14 presence in the region with four percent of their inputs from Nationally, food processing establishments, a job-based LQ other regional agribusiness (311) showed fairly strong of 10.80, and strong regional sectors. For financial analysis, growth from 2007 to 2017 with growth of 48.6 percent in jobs sectors with average values an increase of 17.3 percent from 2007 to 2017. realized at least 40 percent in number of establishments, for an average of both returns 7.7 percent in number of and did not fall below 33 jobs, and 16.1 percent in percent for at least of the wages (Table 2). Two food Analysis of Specific Sectors other two measures (that is, processing establishments The sectors with the most the rate of return for the sector in the region, both animal promise for growth across all ranked at least 30 percent as except poultry, slaughtering agricultural processing and compared to all industries, and (311611) reported a total of input industries based on our the loan failure rate was at or 38 jobs and $2.1 million in data analysis are shown in better than 30 percent of the salary and wages. This sector Table 3. The regional input- average across all industries) had a job location quotient output model was used to (Industriuscfo, 2018). Sectors of 1.58 and a wages location assess the strength of linkages with a good rating for financial quotient of 2.57 and had some with other agribusiness analysis had an average of growth from a very low level industries. Sectors with average 60 percent across the two in 2007. Three establishments linkages purchased at least 9 measures and did not fall provided support activities for percent of inputs from other below 40 percent for one of animal production (1152) with regional agribusiness sectors the measures. eight workers. Travel trailer

14 UT Institute of Agriculture Center for Profitable Agriculture Mapping the Agricultural Assets of Hancock County Tennessee

Table 3. Hancock Regional Agribusiness Sectors with Promise for Growth Based on Data Analysis.

Sector, Number of Check Marks Number Location Regional US Linkages Financial Establishments Quotients Growth Growth Analysis x Average Animal, except poultry, slaughtering (4) x x x Good Minus

x Below Sawmills (3) x x x Average Average

x x Cut stock, resawing lumber and planning (5) x x x Average Good

Below x Manufactured home, mobile home manufacturing (3) x x Average Average

Below x Support activities for animal production (3) x x Average Good

Support activities for animal production (3) Below Well Below x x x x Average Average Travel trailer and camper manufacturing (4)

Table 4. Hancock Regional Farming Sectors with Promise for Growth Based on Data Analysis.

Sector, Number of Check Marks US Production TN Production Local Output Financial Other

x Berries (4) x x ? x Recent growth; Local market

√ Sheep (3) x x N/A Regional Market

√ Greenhouse and Nursery (2) Below x Recent growth; Average Nearby Urban Areas Key

Vegetables (3) Below √ x x Average Local/Regional Market

Fruits-Nuts (3) Below √ x x ? Average Wine and Cider Industries

Table 5. Rank of Targets Identified by Hancock County Agricultural Leaders

Potential Target Target Votes

A farmers market can Livestock Slaughter 9

make Hancock County Farm Input Manufacturer (e.g., trailers) 9

a more attractive Fishing-based, Other Nature, Heritage Tourism 5

place to live and work County Agricultural Fair and Festivals 2

as local consumers Farmers Market 2 2

benefit and local Using Wood Waste 1 social ties may also be Fertilizer Mixing Plant 1 strengthened. Winery 1

Berries, Fruits, and Nuts 1

Sheep 1

UT Institute of Agriculture Center for Profitable Agriculture 15 Recommendations Targets Identified by Local Summary and Based on Data Analysis Agricultural Leaders Conclusions The group of Hancock County Looking at the six potential Provided here are the results of agricultural leaders reconvened target sectors (Table 3), cut an agricultural mapping exercise on September 27, 2018. stock, resaw lumber and planing conducted with local agricultural A presentation was made is the most promising sector in leaders in Hancock County, regarding the information that it meets five of the listed six Tennessee, in cooperation with that had been ascertained criteria. Sawmills, manufactured the University of Tennessee regarding their suggestions and homes including mobile home County Extension Office. Results our secondary data analysis. manufacturing, and support were based on a combination of Participants were asked to activities for animal production our analysis of secondary data think about opportunities for all met three of the criteria. and primary data provided by the county such as local and Both animal, except poultry, the local leaders. The result is regional markets and target slaughter, and travel trailer and a set of recommendations to areas as they pertain to local camper manufacturing had at pursue three possible avenues agriculture or agribusiness. least three check marks. Hence, of further growth including a Based on our presentations based on the data analysis, the USDA custom livestock slaughter and discussions, the leadership three sectors cut (stock, resaw facility, farm input manufacturer group was asked to indicate the lumber and planing, animal, and tourism development as activities that had the greatest except poultry, slaughter, ways to further grow the local potential for helping to grow the and travel trailer and camper economy. local economy. Each individual manufacturing) are the best was provided with three dots candidates to consider in terms A slaughter facility would take and told to distribute the dots of targeting local business advantage of the extensive as they wished. A ranking of recruiting efforts. cattle and other livestock in the various potential targets the county and the region. A based on the vote of these local farm input manufacturer could leaders is provided in Table 5. be based on the success of the Farming current trailer producer in the Based on the number of votes, county. Tourism development We examined the prospects for the decision was made to would take advantage of the growth of farming in Hancock investigate a USDA custom abundant natural resources and County and all neighboring livestock slaughter facility, heritage of the county. These counties (Tennessee and farm input manufacturer, and efforts could take advantage Virginia) based on data from tourism development as ways to of state tax credits through the 2007 and 2012 Census further grow the local economy. the Tennessee Department of Agriculture supplemented It is recommended that local of Economic and Community by more recent data from the subcommittees be formed to Development or the Tennessee National Agricultural Statistical further investigate the possibility Department of Agriculture, Service (2018). We examined 14 of moving forward with on-the- Agriculture Enterprise Fund crop and livestock sectors based ground projects in each of these (2018c). on local, state and national three areas. trends. Farming sectors that showed at least some promise are shown in Table 4.

16 UT Institute of Agriculture Center for Profitable Agriculture Mapping the Agricultural Assets of Hancock County Tennessee References

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