02/17/06 Fuel, fertilizer, rates affect net income

Thanks in large part to the expanding dairy and livestock sectors Idaho farmers, ranchers and the ag industry did a record 4.5 billion dollars worth of cash business in 2005. TAYLOR "And even with all the growth that we had on the revenue side the cost side went up even more." University of Idaho ag economist Garth Taylor says that why many farmers and ranchers didn't see much of a profit last year. By his figures Idaho producers had a 2005 net income of one and a half billion dollars, a four percent drop from 2004. TAYLOR "That's after they paid everything else. And the reason why it did decline even after we had these record cash receipts is fuel prices, duh. They took a big bite out of farmers." That's a complete reversal from 2004 when USDA said that farmers saw an 83 percent gain in their bottom line. Taylor says that means farmers had better be practical this year because costs like fuel, fertilizer and interest rates are still very volatile and could remain high, possibly even going higher in some cases. Voice of Idaho Agriculture Bill Scott