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Farm income tumbles

By: David Wilkins, Capital Press

1-15-2010

Idaho farmers and ranchers will likely remember 2009 as feast or famine, depending on what they produced.

Last year was a bust for dairymen and other livestock producers, while income from sugar beets, potatoes, onions and nursery crops actually increased, according to projections from University of Idaho agricultural economists.

Overall, Idaho's 2009 agricultural cash receipts dropped 17 percent to $5.4 billion, the largest single-year decline in more than 40 years.

The drop in net farm income -- farmers' actual paychecks -- was even worse, down 47 percent to just over $1 billion from $1.9 billion in 2008.

The data are part of a UI report, "The Financial Condition of Idaho Agriculture: 2009 Projections," that was released Jan. 6.

Livestock receipts dropped an estimated 23 percent, led by a decline in milk receipts. Idaho milk checks totaled about $1.4 billion last year, a 33 percent drop from the record $2.1 billion received in 2008.

"This has been the most difficult year financially that many of us have ever endured," Mike Roth, president of the Idaho Dairymen's Association, wrote in the December edition of the Idaho Dairy Focus newsletter.

Despite the $698 million drop in milk revenues, direct government payments to Idaho dairies via Milk Income Loss Contracts were only $17 million.

Sugar beets were the sweet spot for Idaho farmers last year. Increased acreage, improved yields and strong prices helped boost receipts to $252 million, a 72 percent increase from the previous year.

Beet growers are looking forward to another good year in 2010, said Mark Duffin, executive director of the Idaho Sugarbeet Growers Association.

"There seems to be a pretty optimistic outlook," Duffin said. "Prices look like they should hold strong. We are hopeful for another good year."

Potatoes widened their lead as Idaho's No. 1 crop, with record revenue in 2009 estimated at $796 million. Fresh-market prices were strong throughout much of last year, but fell sharply after the fall harvest. Grower prices have been well below the cost of production the past few months.

The outlook for this year isn't good, said Paul Patterson, a UI Extension ag economists and one of the authors of the report.

"We're going to see a lot of equity disappear out of potato operations this year," Patterson said in a recent interview.

Report highlights

* Revenue from cattle and calves was an estimated $1.09 billion, down 8 percent from 2008.

* Hay remained Idaho's third most valuable crop despite weak demand from dairies and beef in 2009. Revenue is forecast at $406 million, down 40 percent from 2008.

* Onion production was up and so were average prices. Revenues are projected to be $43 million, a 43 percent increase from 2008.

* Wheat is still Idaho's second-largest crop behind spuds, but average prices dropped an estimated 35 percent from the record highs of 2008. Revenues are expected to be $512 million, down 28 percent from 2008.

* Idaho barley production in 2009 decreased an estimated 3 percent from the previous year, but the average price is projected to be 5 percent higher. Revenues are projected to be $259 million, 12 percent higher than 2008.

The report was authored by Patterson, UI economist Garth Taylor and Ben Eborn, UI Extension educator in Teton County.