09/25/06 More and Less Money

More and less money. I'm Greg Martin with today's Line On Agriculture. Oregon farmers and ranchers generally made less money last year than in 2004, but more money than all previous years this decade. Net farm income in Oregon last year stood at 1.05 billion dollars, which is up a whopping 142 percent over the past five years: SEARLE: 2005 was a relatively good year- our second highest, according to USDA numbers for net farm income, after 2004. Brent Searle, analyst with the Oregon Department of Agriculture, cautions against anyone thinking farmers and ranchers are making money hand over fist. Farm expenses increased nearly 28 percent over the past year- in many cases, outstripping any increases in gross income. With Oregon having such a diverse agriculture, it often depends on what is being produced. The mixed bag of production values is an example: SEARLE: Wheat prices are pretty low. Dairy was down as well. On the other hand, beef continued to be up. Fruits, vegetables, nursery, all up. Some of those are looking better, some are worse, and they all are facing increased costs. Net farm income is a snapshot of the industry at a given point in time. Things could turn downward when 2006 numbers are tabulated. But right now, the general health of the industry is relatively strong, based on the latest statistics. Searle says net farm income in Oregon decreased slightly last year from 2004 when the state`s farmers and ranchers recorded their highest mark ever: SEARLE: The overall value of production went up in 05 compared to 04 about six percent to $4.7 billion. That`s all sources of production and income on farms. But expenses their purchased inputs also went up nearly 28 percent to 1.9 billion, close to two billion dollars. Searle says the recent trend of higher net farm income in Oregon could suddenly shift in the next few years as expenses continue to climb for farmers and ranchers: SEARLE: We have to remember it`s a snapshot in time. It could turn around significantly next year and hopefully prudent farmers, if they have available reserves, will bank those for times when they need. That's today's Line On Agriculture. I'm Greg Martin on the Northwest Ag Information Network.