ID ag economy

Despite all the difficulties of the past year, drought, covid, supply chains, export disruptions, government payments, 2021 gross livestock and crop cash receipts are estimated at 8.8 billion dollars, 9% higher than in 2020.

However, the estimate for net farm income for 2021 is down 8% from 2020, at $2.39 billion.

While it’s a decrease, it’s still the third highest in the past ten years. University of Idaho ag economist GarthTaylor says the decrease is due largely to higher operating expenses and lower federal government payments.

We’re also, the third characteristic, we’re also extremely volatile. Ag’s extremely volatile. The fourth thing that you really want to know about this is that volatility does not transmit into the local economies.”

That’s because even though ag markets can have huge fluctuations, producers still have to do things like employ people to work in their dairy or purchase fertilizer for their crops, regardless of whether prices are up or down.

Another bright spot was exports.

“This year we had record exports from the state, and over 25% of that is agriculture exports.”

“Our biggest trading partners are Canada and Mexico.”