Agriculture and workers' comp rate proposal for 2010

Washington Ag Today September 25, 2009 Washington’s Department of Labor and Industries this week proposed an average increase of 7.6 percent in worker’s compensation premiums for 2010. For production agriculture the increases range from just two percent for dairies to 14 percent for hop and mint farms. Other segments of agriculture that would see a double digit increase are machine and hand harvested vegetables, hand harvested berries, nuts and flowers, and vineyards.

L&I says health-care inflation of 8.5 percent and wage inflation of 3.4 percent are among the factors impacting next year’s rates. Final 2010 rates will be adopted in late November following six public meetings around the state next month.

After analyzing the recent USDA Cattle on Feed Report, which showed one percent fewer cattle in feedlots this September compared to last year, department economist Joel Greene says it means overall tighter supplies of beef even if though we may have a bit more than expected toward the end of the year. But as far as prices Greene says;

Greene: “Right now the main thing is demand and what the demand for beef is out there given the economic recession and what has been going on. That will be very crucial with what happens with beef demand and what cow-calf operators and cattlemen decide to do going into next year.”

Green says with tighter supply and better demand, if that comes, fed steer prices could average 91-92 dollars a hundredweight next year. Currently they are in the $84 range.

I’m Bob Hoff and that’s Washington Ag Today on the Northwest Ag Information Network.