Hurricane Michael Impact in Alabama

Hurricane Michael
Alabama Agriculture Damage

2018 Assessment Report

Hurricane Michael made landfall on October 10, 2018, as a Category 4 storm with 155 miles per hour winds, making it the strongest storm to hit the continental United States since 2004. With very high winds, excessive rainfall, and a large storm surge, significant damage was expected and did occur. Eight counties (Barbour, Coffee, Covington, Dale, Geneva, Henry, Houston, and Russell) in southeastern Alabama sustained major direct damage in many industries, much of which occurred in areas with significant agricultural and timber production and processing. While direct damages were large, other industries that support these directly affected industries also have been and will be affected in the coming months and years. For example, the ability to irrigate (in some cases), tend, and harvest crops will be slowed or prevented altogether. Farm structures, other infrastructure, and processing equipment (i.e., cotton gins) will need to be rebuilt or replaced. This report outlines the economic impact of the storm including and beyond the direct losses in the study area.

The projected economic losses shown in this report assume no governmental disaster support is provided to Wiregrass farmers. These losses are tempered if disaster programs are provided to affected farmers. A positive trickle-down effect will lessen the losses to related industries and households. The Alabama Cooperative Extension System has gathered the direct loss data and provided the projected indirect and induced losses to inform the public policy discussion that must occur.

The Economic Impact Analysis was conducted by Decision Innovation Solutions (info@decision-innovation.com).

Respectfully submitted,
Hurricane Michael Task Force

(download the complete report)


Hurricane Michael Wind & Damage Map

partial map of the State of Alabama detailing the level of crop damage to eight counties in the southeast corner of the state

Hurricane Michael Agriculture Damage Assessment

COUNTY BARBOUR COFFEE COVINGTON DALE GENEVA HENRY HOUSTON RUSSELL ENTERPRISE TOTAL
Corn ($8,224) ($53,199) - ($21,183) ($94,166) ($181,973) ($125,739) ($1,958) ($486,442)
Cotton ($3,314,819) ($7,750,304) ($2,817,057) ($7,687,770) ($22,007,246) ($16,765,316) ($46,077,304) ($1,326,282) ($107,746,098)
Farm infrastructure - ($750,000) - ($75,000) ($3,390,000) ($4,635,114) ($3,071,500) - ($11,921,614)
Horticulture ($135,000) - - - ($96,336) ($205,000) ($2,522,923) ($15,000) ($2,974,259)
Irrigation infrastructure - - - - ($1,522,000) ($504,000) ($7,607,852) - ($9,633,852)
Livestock ($2,130,484) ($1,785,105) - ($2,535,737) ($5,283,285) ($4,137,964) ($8,514,944) ($130,531) ($24,518,050)
Peanut ($303,062) ($1,369,411) - ($1,186,546) ($2,551,306) ($1,715,558) ($3,927,816) ($250,308) ($11,304,007)
Pecan ($90,000) - - - ($30,375) ($50,625) ($326,250) - ($497,250)
Pine straw - ($185,825) - ($156,546) ($3,282,048) ($1,093,400) ($7,098,720) - ($11,816,539)
Poultry - ($110,627) - ($165,289) ($363,485) ($194,016) ($543,572) - ($1,376,989)
Soybean ($76,325) ($146,451) - ($14,206) ($263,456) ($15,013) ($724,182) ($10,073) ($1,249,706)
Timber ($47,022) ($47,022) - ($47,022) ($47,022) ($726,020) ($19,917,001) ($47,022) ($20,878,131)
COUNTY TOTAL ($6,104,936) ($12,197,944) ($2,817,057) ($11,889,299) ($38,930,725) ($30,223,999) ($100,457,803) ($1,781,174) ($204,402,937)

Economic Impact

The following table breaks down the total impacts by associated round of economic activity for all affected industries.

IMPACT TYPE EMPLOYMENT LABOR INCOME OUTPUT
Direct effect -1,511 ($59,463,889) ($204,402,937)
Indirect effect -658 ($25,667,647) ($61,402,662)
Induced effect -344 ($10,978,994) ($41,414,874)
TOTAL EFFECT -2,512 ($96,110,530) ($307,220,473)

Indirect effects are those experienced by all participants in the supply chain except for the directly affected industries. It includes suppliers and those who supply the suppliers.

Induced or household effects are from the absence of household spending due to loss of business activity.

Taxes (Federal, State & Local)
($22,869,935)