02/20/08 Farm economy looks strong

The Farm Income Forecast says that US ag producers are making money and the outlook for farm economy should be pretty strong again this year. But what about long range? US Agriculture Department analyst Davis Stallings predicts solid farm income for the next decade. STALLINGS "We have high income growth for much of the world, continued demand not only for agriculture for food use but also for energy use and we see nothing over the next few years that's going to change that outlook." Stallings says farmers fearing a price collapse can rest easier. He says demand will be there and prices should remain strong through 2017. STALLINGS "We see corn prices pretty much remaining above $3.50 a bushel throughout the projections period. We see wheat prices you know remaining above $4.50 a bushel. We see sorghum and barley prices pretty high." While prices are up every producer knows that input costs have shot skyward too. STALLINGS "We believe that those input prices will be outpaced by increases in commodity prices." So put it all together and farm income should be strong for the next decade. Voice of Idaho Agriculture Bill Scott