12/05/06 2007 farm income projection

The trends are in motion for good farm prices in 2007. So says USDA chief economist Keith Collins who bases his projection on the performance of the crop sector. COLLINS "We have extraordinarily low stocks relative to consumption for all of the major grains. We are looking at very strong prices in the futures market for delivery in 2007." As for the livestock side of the farm income equation there was a decline in prices in 2006. What about '07? COLLINS "As we look to 2007 there will continue to be some stress on the livestock side because of the higher feed prices." Collins says the value of US crops this year was about seven billion dollars higher than 2005. Farmers got more and the taxpayers saved money. COLLINS "We've seen all of the price based payments that are made to farmers go down. In 2005 direct government payments to farmers were 24 billion dollars. This year 2006 we're estimating that they will be about 16 and a half billion dollars, an eight billion dollar decline in one year." And that could be significant as Congress begins debate next year on the new Farm Bill. Today's Idaho Ag News Bill Scott