Influence of the Agricultural Cluster on the Fayette County Economy

The purpose of this contract is to document the economic influence of the agricultural cluster in the Lexington-Fayette metropolitan statistical area, with emphasis on Fayette County, Kentucky. The agricultural (ag) cluster includes the equine, farm, agritourism, and locally produced food industries. The research will be performed by faculty in the University of Kentucky College of Agriculture (UK). UK will provide services and staff, and otherwise do all things necessary for or incidental to the performance of work, as set forth below: 1. Map the ag cluster and the value of its components, led by Alison Davis with the assistance of a research associate. UK will be using data from a series of databases including EMSI and IMPLAN (both of which are subscription-based) and Federal and State databases that are typically free of charge. The resulting report will include descriptive, quantitative, and graphical representations of the ag cluster displaying the scope and strength of linkages to industries including hospitality and tourism, retail trade, and professional services. 2. Key informant interviews and/or focus groups with business owners and decision makers, led by Lori Garkovich. The emphasis is on why firms chose to locate in Fayette County and how they value the ag and equine industries in the bigger context of all decision factors. 3. Quantitative analysis of business location decisions as a companion to the key informant interviews. This is a statistical location model using well-accepted methods. It explains business location and workforce recruitment as a function of locations’ characteristics, ag and non-ag quality of life indicators, and decision makers’ perceptions. Leigh Maynard will play a lead role in this component, with the assistance of a graduate student. 4. Non-market valuation survey of residents – this is a supplemental survey already planned as part of the larger Equine Survey funded by the GOAP and UK. This portion of the Equine Survey is led by Alison Davis and will be administered during the summer. Students will be recruited to assist in distributing surveys. Outputs for each of the four activities listed above will consist of reports targeted to an audience of local government officials, economic development interest groups, and business decision makers participating in the growth of the Bluegrass economy. The reports will include fact-based background information, transparent description of credible data sources and defensible methods of analysis, clear interpretation of results, and strategic implications of the results. Intermediate progress will be reported when decision-relevant findings occur, and on-demand requests for data and progress updates are welcomed.