12/08/08 Inputs costs

Grain prices were enough to offset increased input costs and set a net farm income record for the year. MOREHART "Most commodities aren't keeping pace with the rising costs. The exceptions are corn, soybeans, wheat and the major grains." USDA economist Mitch Morehart says this year's farm inputs and expenses are dramatic. MOREHART "For example fertilizer is up about 64 percent over 2007, seed cost 28 percent higher, fuel 26 percent higher. The rising costs aren't going to keep up with expenses so vegetables, fruit, and most of the livestock sector are having increases in receipts but they're not enough to offset the higher costs." American agriculture has maintained a strong and solvent balance sheet for the past 20 years coming out of the problems of the mid-1980's. MOREHART "Lending and borrowing has been sound and conservative and asset growth has pretty much kept pace with expectations of incomes in agriculture." That strong balance sheet has kept a lot of farmers and ranchers in business during economic downturns. Voice of Idaho Agriculture Bill Scott