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Economic Contribution of Projects Leveraged with AURI Assistance

PROJECT OVERVIEW

AURI was interested in quantifying the contribution of its programs in Minnesota. Thus, you hired University of Minnesota Extension to conduct an economic contribution study. The economic contribution study measured the direct effect of AURI’s business assistance (operating revenues, capital expenditures, and jobs). AURI provided all required data to Extension. Extension then used an input-output model (IMPLAN) to measure the total effect on the state of Minnesota.

According to the Agricultural Utilization Research Institute (AURI), the organization works “with individual entrepreneurs, businesses, cooperatives, commodity groups and farm organizations that have ideas for new uses to benefit Minnesota agriculture.” To meet this goal, AURI offers three primary services. They are applied research, innovation networks, and hands-on scientific assistance.1 This analysis focuses on the hands-on scientific assistance work of AURI.

DATA COLLECTION

AURI staff provided the data required for this analysis by surveying previous clients that received more than five hours of service between fiscal years (FY) 2011 and 2017.2 Responding clients represented 50 percent of all client-based projects in AURI’s portfolio and 66 percent of total project hours delivered in the program area. Clients estimated the following:

1) The number of jobs created or retained due to project assistance.

2) The number of jobs likely to be created or retained in the next five years resulting from AURI’s assistance.

3) Capital investments made due to the project assistance.

4) Future capital investments likely in the next five years, as a result of AURI’s assistance.

5) New gross annual sales resulting from AURI’s assistance.

6) Tons of commodity utilized each year.

7) Dollars contributed towards the project from non-AURI sources.

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