Agricultural Economists Say Net Farm Income Fell

By The Idaho Statesman, Boise

Jan. 6–Idaho’s beef and dairy operations accounted for nearly $4.5 billion in cash receipts collected by the state’s agricultural industry in 2006, according to projections by University of Idaho agricultural economists.

The 2006 total was $5 million higher than 2005.

Idaho potatoes also posted a strong performance. The state’s most famous agricultural product accounted for $664 million in sales, a 27 percent gain from 2005. Hay sales grew to nurture Idaho’s growing dairy herd, yielding $373 million or a 12 percent increase from 2005.

But high costs for fuel, fertilizer and even feed outstripped the modest gain in gross receipts. Idaho’s net farm income slid 23 percent from the previous year from $1.125 billion to $868 million.

“The bottom line is that cash receipts are virtually equal to last year, but net farm income fell 23 percent,” said Garth Taylor, U of I Agricultural Economics and Rural Sociology Department regional economist at Moscow.

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Copyright (c) 2007, The Idaho Statesman, Boise

Distributed by McClatchy-Tribune Business News.

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