A SUMMARY OF ECONOMIC CONDITIONS IN HENRYETTA AND OKMULGEE COUNTY, OKLAHOMA 2009

AE-09127 A SUMMARY OF ECONOMIC CONDITIONS IN HENRYETTA AND OKMULGEE COUNTY, OKLAHOMA 2009 Doug Maxey, Okmulgee County Extension Director, Okmulgee (918) 756-1958 Jack Frye, Community Development Specialist, Ada (580) 332-4100 Dave Shideler, Extension Economist, OSU, Stillwater (405) 744-6170 Cindi Browne, Graduate Assistant, OSU, Stillwater OKLAHOMA COOPERATIVE EXTENSION SERVICE OKLAHOMA STATE UNIVERSITY November 2009

A Summary of Economic Conditions in Henryetta and Okmulgee County, Oklahoma 2009 Doug Maxey County Extension Director Okmulgee County Extension Office 314 S. Broadway, Suite 101 1901 N. Oklahoma, Fairgrounds PO Box 1378 Jack Frye Community Development Specialist Okmulgee, OK 74447-6527 Ada, OK 74821-1378 Doug.maxey@okstate.edu jack.frye@okstate.edu Dave Shideler Cindi Browne Extension Economist Graduate Assistant 323 Ag Hall 506 Ag Hall Oklahoma State University Oklahoma State University Stillwater, OK 74078 Stillwater, OK 74078 Dave.shideler@okstate.edu ABSTRACT This paper provides a comprehensive overview of the economic conditions of Henryetta and Okmulgee County. The information provided includes the trends in population, employment, income, and retail sales. "Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, Title IX of the Education Amendments of 1972, Americans with Disabilities Act of 1990, and other federal laws and regulations, does not discriminate on the basis of race, color, national origin, sex, age, religion, disability, or status as a veteran in any of its policies, practices or procedures. This includes but is not limited to admissions, employment financial aid, and educational services." "Readers may make verbatim copies of this document for non-commercial purposes by any means."

A Summary of Economic Conditions in Henryetta and Okmulgee County, Oklahoma 2009 The economy of Okmulgee County greatly depends on the state and local government and the government enterprises sector. Nearly one-fourth of the jobs in Okmulgee County in 2007 were jobs within the government and governmental enterprises sector. Retail trade, manufacturing and farm employment are also important sectors to Okmulgee County. This report is designed to provide an overview of the economic conditions of Henryetta and Okmulgee County; but more specifically, its object is to examine trends in population, employment, income, and retail sales. No recommendations will be made regarding the findings of this report. General Demographic and Population Data According to the Oklahoma Department of Commerce (OKDoC), the 2008 population for Henryetta is 6,031. This is a 1.1 percent decrease from 2000 (Table 1). During the same time frame, Okmulgee County s population decreased 1.2 percent from 39,685 to 39,219. Okmulgee, the largest city in the county also declined in population from 2000 to 2008, by 3.0 percent. The figures in Table 2 show the total housing units and the average size of households in Okmulgee County and its cities and towns from the 2009 estimates from ESRI. Okmulgee County had 17,894 housing units and an average of 2.52 persons per household. Of the housing units in the county, 16.5 percent were in Henryetta, and 33.4 percent were located in Okmulgee. Table 3 reports educational attainment data for Henryetta and Okmulgee County in 2009. Henryetta reports 69.2 percent of the population aged 25 and over to be high school graduates. The county reports 79.0 percent of those 25 and over to be high school graduates. The average for the State of Oklahoma was 84.0 percent. Figure 1 shows the population growth for residents aged 17 and under and for the 65 and 1

over age group in the county. From 2000 to 2008, Okmulgee County s youth population has decreased by 7.4 percent. During the same time period, the number of residents age 65 and older decreased by 1.8 percent for Okmulgee County. 2

Table 1: Population Data for Okmulgee County and Cities Therein, 1990, 2000, 2008 1990 2000 2008 % Change, 2000-2008 Beggs 1,150 1,364 1,355-0.7% Dewar 921 919 898-2.3% Grayson 66 134 135 0.7% Henryetta 5,872 6,096 6,031-1.1% Hoffman 175 148 146-1.4% Liberty (pt.) 59 184 178-3.3% Morris 1,216 1,294 1,309 1.2% Okmulgee 13,441 13,022 12,634-3.0% Winchester 301 424 449 5.9% Balance of Okmulgee County 13,289 16,100 16,084-0.1% Okmulgee County 36,490 39,685 39,219-1.2% Source: Oklahoma Department of Commerce, Population Estimates by Place by County 1990-1999, 2008 Oklahoma County Population Estimates, and 2000-2008 US Incorporated Places Population Estimates and Growth Table 2: Housing Units, Average Household Size for Henryetta and Okmulgee County, 2009 Total Housing Units Average Household Size Beggs 570 2.48 Dewar 391 2.60 Grayson 55 2.29 Henryetta 2,946 2.40 Hoffman 82 2.52 Liberty 33 2.90 Morris 543 2.70 Okmulgee 5,977 2.39 Winchester 177 2.73 Okmulgee County 17,894 2.52 Source: ESRI Business Analyst Online, Demographic Comparison Report; compiled by Cindi Browne, OCES 3

Table 3: Educational Characteristics for Henryetta and Okmulgee County, 2009 Educational Attainment: Henryetta Okmulgee County Persons 25 years or over 4,065 26,187 Less than 9th grade 522 1,826 9th to 12th, no diploma 728 3,666 High school graduate (includes equivalency) 1,510 9,790 Some college, no degree 571 5,045 Associate's degree 310 2,551 Bachelor's degree 330 2,298 Graduate or professional degree 94 1,011 Percent high school graduate or higher 69.2% 79.0% Percent bachelor's degree or higher 10.4% 12.6% Percent high school graduate or higher in OK 84.0% 84.0% Percent bachelor's degree or higher in OK 22.3% 22.3% Source: ESRI Business Analyst Online, Market Profile Report; compiled by Cindi Browne, OCES 4

Source: Woods & Poole 5

Employment Trends Table 4 shows Okmulgee County s employment numbers provided by the Bureau of Labor Statistics, from 1990-2008. (Also see Figure 2.) Employment in the county has decreased by 7.2 percent from 2000 to 2008. Employment peaked in 2000 with 16,345 persons employed in Okmulgee County. The county had its highest unemployment rate in 1992 at 11.0 percent. Its lowest rate was 4.5 percent in 2000. Unemployment has fluctuated between 4.5 and 7.9 percent over the last decade; the unemployment rate in 2008 was 5.4 percent. (Also see Figure 3.) For comparison, the 2008 unemployment rate for the state was 3.8 percent. Table 5 provides information on employment by industry for the county from 2001-2007. In 2007, Okmulgee County s largest employers are the government, retail trade, manufacturing, farm employment, and other services except public administration sectors, in that order. Total employment over this period increased, though job losses were observed in the following industries: farming, utilities, construction, retail trade, information, finance and insurance, and military. The greatest job growth occurred in the administrative and waste services sector (58.6%) followed by the real estate, rental and leasing sector (48.7%) and the mining sector (27.0%). Table 6 gives further analysis of the conditions in the county by using a location quotient to determine a community's degree of self-sufficiency in a particular economic sector. (Also see Figure 4.) The location quotient is used to identify exporting activity and is calculated by dividing the percentage of those locally employed in a particular sector by the percentage of those employed in the same sector nationwide. 1 The location quotient can be used to interpret whether a county is self-sufficient, is an 1 Community Economic Analysis: A How to Manual. By Ron Hustedde, Ron Shaffer, and Glen Pulver. North Central Regional Center for Rural Development, Iowa State University of Science and Technology, Ames, Iowa. 1984. 6

importer, or is an exporter in a particular sector. A location quotient that is approximately one (0.75-1.25) suggests self-sufficiency; a quotient less than 0.75 suggests that a county is an importer. If the location quotient is greater than 1.25, the county likely exports products of that sector. The greater the location quotient, the more significant that sector is to the local economy. According to Table 6, and Figure 4, Okmulgee County is likely an exporter in the farm, mining, other services, and government and government enterprises (specifically, state and local government) sectors in 2007. The county is probably an importer in the following sectors: construction; wholesale trade; transportation and warehousing; information; finance and insurance; real estate and rental and leasing; professional and technical services; management of companies and enterprises; administrative and waste services; arts entertainment and recreation; educational services; health care and social assistance; and federal civilian government. For clarification, dashes in Table 6 generally represent a situation where the number of employers is so small that employment numbers cannot be released without jeopardizing privacy constraints. The dashes do not necessarily represent zero activity. Also, jobs in public primary, secondary and higher education are counted as government and government enterprises, not educational services. It is important, as well, to notice the linkage that exists between positive or negative growth and export or import sectors of Okmulgee County. For example, there is a linkage between positive growth and exportation. The mining, other services, government and government enterprises, and state and local government sectors all show some growth and are exporters. However, the fastest growing sectors in Okmulgee County: administrative and waste services sector and the real estate, rental and leasing sectors are not exporters. The location quotient shows administrative and waste services and real estate and rental and leasing are 7

importers. This may be the case that the location quotient has yet to catch up to the level of growth. There is also a linkage between negative growth and importing sectors, though fewer cases. The construction, information, and finance and insurance sectors show negative growth in the county and they are also import industries. The farm sector is unique in that it has one of the highest location quotients in 2007 (5.31), implying it is an export sector, but it has a negative growth rate from 2001 to 2007. 8

Table 4: Labor Force for Okmulgee County 1990-2008 Labor Force Employment Unemployment Unemployment Rate Year 1990 15,373 13,955 1,418 9.2 1991 15,257 13,744 1,513 9.9 1992 14,877 13,242 1,635 11.0 1993 15,138 13,481 1,657 10.9 1994 15,344 13,772 1,572 10.2 1995 15,014 13,434 1,580 10.5 1996 14,678 13,371 1,307 8.9 1997 15,049 13,758 1,291 8.6 1998 14,736 13,369 1,367 9.3 1999 14,337 13,256 1,081 7.5 2000 17,116 16,345 771 4.5 2001 17,071 16,263 808 4.7 2002 16,972 15,954 1,018 6.0 2003 16,974 15,631 1,343 7.9 2004 16,820 15,598 1,222 7.3 2005 16,803 15,731 1,072 6.4 2006 16,592 15,658 934 5.6 2007 16,170 15,287 883 5.5 2008 16,025 15,161 864 5.4 Source: Bureau of Labor Statistics, Local Area Unemployment Statistics 9

Source: Bureau of Labor Statistics, Local Area Unemployment Statistic 10

Source: Bureau of Labor Statistics, Local Area Unemployment Statistic 11

Table 5: Employment by Major Industry in Okmulgee County, 2001-2007 Item 2001 2002 2003 2004 2005 2006 2007 Total employment 14,711 14,756 14,981 15,074 15,458 15,603 15,906 Farm employment 1,373 1,372 1,324 1,337 1,342 13,34 1,327 Forestry, fishing, related activities, and other 63 74 68 69 70 70 70 Mining 437 418 481 391 420 552 555 Utilities 85 83 63 59 57 58 50 Construction 706 634 652 670 681 654 627 Manufacturing 1,470 1,351 1,376 1,443 1,540 1,515 1,501 Wholesale trade 167 188 176 183 234 201 202 Retail Trade 1,787 1,830 1,862 1,870 1,831 1,799 1,774 Transportation and warehousing 306 321 344 373 377 345 342 Information 114 87 104 103 109 101 101 Finance and insurance 504 496 464 482 477 451 446 Real estate and rental and leasing 224 251 250 286 308 307 333 Professional and technical services 408 400 379 386 392 384 492 Management of companies and enterprises 97 99 (D) 93 96 95 98 Administrative and waste services 261 319 (D) 351 317 342 414 Educational services (D) (D) (D) (D) (D) (D) (D) Health care and social assistance (D) (D) (D) (D) (D) (D) (D) Arts, entertainment, and recreation 164 201 (D) (D) 147 194 196 Accommodation and food services 952 925 (D) (D) 963 966 990 Other services, except public administration 1,104 1,107 1134 1155 1,127 1,142 1,184 Government and Government Enterprises 3,172 3,156 3,288 3,265 3,396 3,557 3,463 Federal, civilian 143 149 155 140 138 142 150 Military 196 192 192 183 167 166 168 State and local 2,833 2,815 2,941 2,942 3,091 3,249 3,145 Source: Regional Economic Information System 1969-2007, v4.1.4, Table CA25N 12

Table 6: Location Quotient for Okmulgee County, 2001-2007 2001 2002 2003 2004 2005 2006 2007 Total employment 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Farm employment 5.10 5.04 4.89 5.13 5.19 5.30 5.31 Forestry, fishing, related activities, and other 0.70 0.79 0.77 0.77 0.77 0.78 0.79 Mining 6.11 6.29 6.69 5.65 5.66 6.75 6.41 Utilities 1.56 1.55 1.21 1.16 1.12 1.15 0.99 Construction 0.81 0.74 0.74 0.73 0.70 0.65 0.61 Manufacturing 0.98 0.96 1.02 1.10 1.17 1.17 1.18 Wholesale trade 0.30 0.35 0.32 0.33 0.41 0.35 0.35 Retail Trade 1.09 1.12 1.13 1.13 1.09 1.07 1.05 Transportation and warehousing 0.63 0.68 0.73 0.78 0.76 0.68 0.66 Information 0.32 0.26 0.32 0.33 0.34 0.32 0.32 Finance and insurance 0.73 0.71 0.65 0.68 0.65 0.61 0.60 Real estate and rental and leasing 0.46 0.50 0.47 0.50 0.49 0.47 0.47 Professional and technical services 0.44 0.43 0.40 0.40 0.39 0.38 0.47 Management of companies and enterprises 0.62 0.62-0.58 0.58 0.57 0.57 Administrative and waste services 0.31 0.37-0.39 0.34 0.36 0.42 Educational services - - - - - - - Health care and social assistance - - - - - - - Arts, entertainment, and recreation 0.57 0.68 - - 0.47 0.61 0.60 Accommodation and food services 1.00 0.96 - - 0.93 0.92 0.92 Other services, except public administration 1.39 1.33 1.33 1.35 1.29 1.30 1.33 Government and Government Enterprises 1.55 1.52 1.55 1.56 1.60 1.69 1.62 Federal, civilian 0.60 0.61 0.61 0.57 0.56 0.58 0.61 Military 1.06 1.03 1.02 0.99 0.93 0.93 0.94 State and local 1.75 1.70 1.75 1.76 1.83 1.93 1.84 Source: Computed by Cindi Browne, OCES using data from Regional Economic Information System 1969-2007, v4.1.4, Table CA25N 13

Source: Computed by Cindi Browne, OCES using data from Regional Economic Information System 1969-2007, v4.1.4, Table CA25N 14

Income Trends Table 7 provides data portraying total personal income by major source for Okmulgee County from 2001-2007. Between 2001 and 2007, total personal income in Okmulgee County increased by 36.5 percent. During the same time period, the state's total personal income grew by 40.0 percent. One source of income growth in the county from 2001-2007, was from growth of supplements to wages and salaries (i.e., benefits; 53.7%) and transfer payments (59.2%). Per capita income for the state of Oklahoma was $34,997 in 2007. Per capita income in Okmulgee County was $25,517 in 2007. (See Figure 5.) Some of the disparity in per capita income between Okmulgee County and Oklahoma is likely due to the fixed nature of income in Okmulgee County; state and local government wages and transfer payments typically do not increase as rapidly as private sector wages. It is also significant to look at Okmulgee County s adjustment for residence. The positive number indicates that people outside of the county do not commute to jobs inside of Okmulgee County. It may be the case that people in Okmulgee County commute to jobs outside of the county. This income adjustment must be added to the Okmulgee County income because it represents workers who bring their income home with them to Okmulgee County from surrounding counties. Transfer payments are often referred to only as welfare payments, but this category actually contains a much more diverse group of payments. Table 8 gives the breakdown of the various types of transfer payments received in the county from 2001-2007. From 2001-2007, medical benefits increased 95.3 percent, making it the fastest growing category. The next fastest growing category was veteran s benefits (68.8%). Three categories of transfer payments declined over this period: unemployment insurance compensation, other payments to individuals from 15

government (which include benefits such as compensation of victims of crimes, Bureau of Indian Affairs payments and disaster relief payments) and business payments to individuals (which are primarily personal injury payments). Combining these observations with those from the employment section, one might conclude that Okmulgee County has a relatively stable labor market. Although the population is declining in Okmulgee County, rising employment and wages are often a sign that there is excess demand for labor, which could possibly draw labor into the region. 16

Table 7: Personal Income by Major Source for Okmulgee County, 2001-2007 2001 2002 2003 2004 2005 2006 2007 Wage and salary disbursements $235,286 $240,564 $253,602 $261,697 $277,318 $290,412 $306,756 Supplements to wages and salaries $57,575 $64,523 $70,224 $76,044 $82,573 $86,381 $88,495 Proprietors' income $37,509 $31,683 $30,807 $40,876 $39,712 $37,965 $44,302 Earnings by place of work $330,370 $336,770 $354,633 $378,617 $399,603 $414,758 $439,553 plus: Adjustment for residence $148,823 $147,768 $140,087 $156,398 $165,464 $190,096 $194,206 plus: Dividends, interest, and rent $111,141 $99,195 $96,633 $115,203 $105,256 $120,350 $132,447 plus: Personal current transfer receipts $183,938 $207,907 $222,906 $238,646 $252,624 $273,859 $292,740 less: Contributions for government social insurance $38,949 $40,479 $43,390 $45,790 $49,213 $52,349 $55,020 Personal income $735,323 $751,161 $770,869 $843,074 $873,734 $946,714 $1,003,926 Per capita personal income (dollars) $18,578 $19,010 $19,477 $21,317 $22,214 $24,201 $25,517 Source: Regional Economic Information System 1969-2007, v4.1.4, Table CA05N 17

Source: Regional Economic Information System 1969-2007, v4.1.4, Tables CA05 and CA05N 18

Table 8: Transfer Payments (in thousands) by Type for Okmulgee County, 2001-2007 2001 2002 2003 2004 2005 2006 2007 Retirement and disability insurance benefits $73,460 $76,266 $81,068 $86,843 $91,676 $96,844 $101,890 Medical benefits $66,386 $83,378 $88,424 $99,303 $104,955 $119,249 $129,681 Income maintenance benefits $19,270 $22,150 $25,380 $27,070 $28,405 $29,140 $30,122 Unemployment insurance compensation $2,474 $3,771 $5,144 $2,931 $2,037 $1,730 $1,842 Veterans benefits $9,756 $10,525 $11,231 $12,121 $13,584 $15,263 $16,467 Federal education and training assistance $2,467 $2,861 $2,954 $3,205 $3,310 $3,179 $3,067 Other transfer payments to individuals $351 $244 $284 $260 $317 $233 $314 Payments to nonprofit institutions $4,801 $4,979 $5,197 $5,416 $6,924 $6,873 $7,053 Business payments to individuals $4,973 $3,733 $3,224 $1,497 $1,416 $1,348 $2,304 Total personal current transfer receipts ($000) $183,938 $207,907 $222,906 $238,646 $252,624 $273,859 $292,740 Source: Regional Economic Information System 1969-2007, v4.1.4, Table CA35 19

Trends in Use and Sales Tax Collections Table 9 presents use tax collections for the City of Henryetta for fiscal years 2003-2009. Use tax is a tax paid on merchandise bought outside of Oklahoma when the tax was not charged in another state (Oklahoma Tax Commission). For fiscal year 2009, Henryetta had $129,996.78 in use tax collections remitted to the city, up from $87,466.38 in 2008. Table 10 presents county sales tax collections for Okmulgee County for fiscal years 2003-2009. In 2009, with a tax rate of 1.00%, collections totaled over $2.5 million (an increase of 134 percent since 2003 where the tax rate was 0.5%). Table 11 shows sales tax collections for the city of Henryetta from 1990-2008. In 2008, Henryetta collected over $2.4 million at a tax rate of 4.0%. Estimates of retail sales can be calculated from sales tax collection figures. Figure 6 shows estimated retail sales for the city of Henryetta from 1990-2008. Retail sales growth can be an important indicator for communities to track over time. Not only are retail sales an indicator of the strength of an economy, but since most communities depend on municipal sales tax revenues to fund their budgets, retail sales also determine a local government's ability to provide for local services. Furthermore, careful analysis of retail strengths and weaknesses may indicate possible areas of improvement for communities intently focused on economic development through the retention or attraction of local retail dollars. Two additional reports are available that provide some of this analysis: Analysis of Retail Trends and Taxable Sales for Henryetta and Okmulgee County, 2009 and Threshold Analysis for Henryetta, Oklahoma 2009. While estimated retail sales in Henryetta increased by 17.4% between 2000 and 2008, real retail sales dropped by 6.1 percent when adjusted for inflation. Total sales in 2008 are 20

estimated to be $60,478,300. As one can see in Figure 6, retail sales in Henryetta have increased steadily since 1990 while inflation-adjusted retail sales have decreased slightly. 21

Table 9: City Use Tax Collections for the City of Henryetta, FY 2003-2009 Year Tax Rate Months Collections 2003 4.00% 12 $66,503.65 2004 4.00% 12 $55,714.61 2005 4.00% 12 $64,030.71 2006 4.00% 12 $61,185.72 2007 4.00% 12 $91,126.73 2008 4.00% 12 $87,466.38 2009 4.00% 12 $129,996.78 Source: Oklahoma Tax Commission Ledger Reports Table 10: County Sales Tax Collections for Okmulgee County, FY 2003-2009 Year Tax Rate Months County Collections 2003 0.5% 12 $1,110,113.20 2004 0.5% 12 $1,171,650.22 2005 0.5%-1.0% 10&2 $1,350,151.61 2006 1.00% 12 $2,571,190.34 2007 1.00% 12 $2,627,302.92 2008 1.00% 12 $2,718,871.33 2009 1.00% 12 $2,598,714.83 Source: Oklahoma Tax Commission Ledger Reports 22

Table 11: Sales Tax Collections and Estimated Retail Sales for Henryetta, OK, FY 1990-2008 Year Months Rate Sales Tax Collections Estimated Retail Sales 1990 12 4.0% $1,659,627.00 $41,490,675.00 1991 12 4.0% $1,774,053.00 $44,351,325.00 1992 12 4.0% $1,815,734.00 $45,393,350.00 1993 12 4.0% $1,867,438.00 $46,685,950.00 1994 12 4.0% $1,853,934.00 $46,348,350.00 1995 12 4.0% $1,824,404.00 $45,610,100.00 1996 12 4.0% $1,893,743.00 $47,343,575.00 1997 12 4.0% $1,911,686.00 $47,792,150.00 1998 12 4.0% $1,970,400.00 $49,260,000.00 1999 12 4.0% $2,001,807.00 $50,045,175.00 2000 12 4.0% $2,061,184.00 $51,529,600.00 2001 12 4.0% $2,166,172.00 $54,154,300.00 2002 12 4.0% $2,161,325.00 $54,033,125.00 2003 12 4.0% $2,242,401.00 $56,060,025.00 2004 12 4.0% $2,211,316.00 $55,282,900.00 2005 3&9 3.0%-4.0% $2,036,222.00 $54,306,608.33 2006 12 4.0% $2,247,604.00 $56,190,100.00 2007 12 4.0% $2,329,654.00 $58,241,350.00 2008 12 4.0% $2,419,132.00 $60,478,300.00 Source: Oklahoma Tax Commission Ledger Reports 23

Source: Computed by Cindi Browne, OCES from Oklahoma Tax Commission Ledger Report and Bureau of Labor Statistics 24

Farms and Agriculture The importance of agriculture may be frequently understated in discussions about total employment and personal income. Many jobs and salaries are generated in businesses that support agriculture. For example, a farm supply store would be classified as an agricultural retail establishment, but the methods of reporting data are such that it is difficult to isolate the agricultural businesses; however, specific agricultural data was collected to indicate the magnitude of agriculture in Okmulgee County. Table 12 contains farm income and expenditure data as reported by the Bureau of Economic Analysis, for the years 2001-2007. The volume of sales and expenditures reflects, to some extent, the relationship between agriculture and agri-related businesses. For Okmulgee County, cash receipts and other income increased by 4.7 percent from 2001-2007, and production expenses also increased by 23.5 percent. Total farm labor and proprietor s income remain negative despite extremely large increases in inventories (764.6%). Figure 7 illustrates the total farm labor and proprietors income for the county from 1991-2007. Table 13 summarizes Census of Agriculture data for 1997, 2002, and 2007 for the county. In 2007, there were 1,449 farms in Okmulgee County, and 294, 324 total acres in farms. Approximately 66.0 percent of the land area in the county was farmland. Most of the farms (1,326 out of 1,449) were family or individually owned, and 546 of the farmers reported farming to be their principal occupation. The average age of farm operators in Okmulgee County in 2007 was 57.6 years of age. The market value of agricultural products sold in the county during 2007 was $21,222,000, an average of $14,646 per farm. 25

Table 12: Farm Income (in thousands) for Okmulgee County, 2001-2007 2001 2002 2003 2004 2005 2006 2007 Total cash receipts and other income $ 23,349 $ 21,776 $ 22,463 $ 24,712 $ 27,352 $ 24,963 $ 24,446 less: Total production expenses $ 27,415 $ 24,522 $ 26,429 $ 28,260 $ 30,620 $ 30,485 $ 33,851 Realized net income $ (4,066) $ (2,746) $ (3,966) $ (3,548) $ (3,268) $ (5,522) $ (9,405) plus: Value of inventory change $ 579 $ 1,957 $ (1,721) $ 1,753 $ 106 $ (820) $ 5,006 Total net income including corporate farms $ (3,487) $ (789) $ (5,687) $ (1,795) $ (3,162) $ (6,342) $ (4,399) less: Net income of corporate farms $ (74) (L) $ 138 $ 193 $ 179 $ (119) $ 109 Total net farm proprietors' income $ (3,413) $ (759) $ (5,825) $ (1,988) $ (3,341) $ (6,223) $ (4,508) plus: Farm wages and perquisites $ 1,019 $ 713 $ 806 $ 1,201 $ 1,176 $ 1,172 $ 1,385 plus: Farm supplements to wages and salaries $ 141 $ 119 $ 110 $ 160 $ 137 $ 130 $ 194 Total farm labor and proprietors' income $ (2,253) $ 73 $ (4,909) $ (627) $ (2,028) $ (4,921) $ (2,929) Source: Regional Economic Information System 1969-2007, v4.1.4, Table CA45 26

Source: Regional Economic Information System 1969-2007, v4.1.4, Table CA45 27

Table 13: General Farm Characteristics for Okmulgee County, 1997, 2002, 2007 1997 2002 2007 Number of Farms 1,107 1,268 1,449 Total Acres in Farms 302,155 288,969 294,324 Total Acres in Cropland 123,386 113,701 100,027 Average Size of Farm (acres) 273 228 203 Percent of Land Area in Farms 75.6 64.8 66.0 Farms with Sales of $2,500 or More 764 740 822 Average Value of Land And Buildings per Farm $200,462 $209,622 $353,951 Farm Operators by Tenure: Full Owners 663 843 1,007 Part Owners 366 339 371 Tenants 78 86 71 Farms by Type of Organization Individual or Family 1,024 1,218 1,326 Partnerships 67 33 84 Corporations 6 13 22 Other 10 4 17 Average Age of Farm Operators 56.3 55.9 57.6 Farm Operators by Principal Occupation Farming 451 640 546 Other 656 628 903 Market Value of Agricultural Products Sold (in $1,000) $18,819 $14,607 $21,222 Average Market Value of Agricultural Products Sold per Farm $17,000 $11,520 $14,646 Sources: 1997 Census of Agriculture, Oklahoma State and County Data, Volume 1 Part 36, U.S. Department of Commerce, Bureau of the Census, Issued March 1999. 2002 Census of Agriculture, Oklahoma State and County Data, Volume 1 Part 36, U.S. Department of Commerce, Bureau of the Census, June 2004. http://www.nass.usda.gov/census/census02/volume1/ok/index2.htm 2007 Census of Agriculture, Oklahoma State and County Data, Volume 1 Part 36, U.S. Department of Commerce, Bureau of the Census, February 2009. http://www.agcensus.usda.gov/publications/2007/full_report/volume_1,_chapter_2_county_level/oklahoma/inde x.asp 28

Summary This report provides an overview of the economic base of Henryetta and Okmulgee County as a whole. Future economic development strategies should utilize the existing economic base in order to maximize the benefits to the local residents. The sectors comprising the economic base of Okmulgee County identified in this report are: farming, mining, other services, government and government enterprises. Supporting the employment generated by these industries are accommodation and food services, retail trade sectors, manufacturing, and other self-sufficient sectors. Although the population is declining in Okmulgee County, incomes continue to rise, potentially attracting workers to the region. 29

References ESRI Business Analyst. Demographic Comparison and Market Profile Reports for Henryetta, OK; downloaded 12/8/09, 4:00 p.m. Hustedde, Ron, Shaffer, Ron, and Pulver, Glen (1984). Community Economic Analysis: A How To Manual. North Central Regional Center for Rural Development, Iowa State University of Science and Technology: Ames Iowa. Oklahoma Department of Commerce. 2007 Oklahoma Population Estimates by Place by County. Released July 10, 2008. http://staging.okcommerce.gov/test1/dmdocuments/2007_oklahoma_population_estimat es_by_place_by_county_1407082493.xls; downloaded 9/10/08, 3:45pm Oklahoma Tax Commission. City Sales Tax Ledger Reports, Fiscal Years 2000 to 2008. Available online at http://www.tax.ok.gov/rpt4.html Oklahoma Tax Commission. City Use Tax Ledger Reports, Fiscal Years 2000 to 2008. Available online at http://www.tax.ok.gov/rpt4.html Oklahoma Tax Commission. County Sales Tax Ledger Reports, Fiscal Years 2000 to 2008. Available online at http://www.tax.ok.gov/rpt4.html U.S.Department of Commerce, Bureau of Labor Statistics. Local Area Unemployment Statistics. http://www.bls.gov/lau/; downloaded data 11/9/09, 12:00 pm. U.S. Department of Commerce, Bureau of Economic Analysis. Regional Economic Information System. 1969-2007, v4.0.4, Tables CA05, CA05N, CA25N, CA35and CA45. U.S. Department of Commerce, Census Bureau. 1997 Census of Agriculture, Oklahoma State and County Data, Volume 1 Part 36, Issued March 1999. U.S. Department of Commerce, Census Bureau. 2002 Census of Agriculture, Oklahoma State and County Data, Volume 1 Part 36, June 2004. http://www.nass.usda.gov/census/census02/volume1/ok/index2.htm U.S. Department of Commerce, Census Bureau. 2007 Census of Agriculture, Oklahoma State and County Data, Volume 1 Part 36, February 2009. http://www.agcensus.usda.gov/publications/2007/full_report/volume_1,_chapter_2_co unty_level/oklahoma/okv1.pdf 30