DECEMBER 2007: AROUND THE STATE
Ag sets record
prices as costs nip farm income
STATEWIDE
Key agricultural industries are earning record prices
this year, making 2007 a very good year for many of
Oregon’s ag producers. However, rising costs mean net
farm income in 2006 was down almost 10% from the year
before.
At almost $10 per bushel, wheat is selling at the highest-ever
price in Oregon, more than double what it sold for in 2006,
says Bruce Pokarney of the Oregon Department of
Agriculture.
Hazelnut growers negotiated the second-highest price in
history, says Polly Owen with the Oregon Hazelnut Commission;
the USDA reports an average selling price of $.70 per pound, up
from $.54 last year (the highest-ever price was $1.12 in
2005).
While production is down about 10,000 tons from last year, Owen
says this is not worrisome because hazelnuts are alternate
bearing, and swings in production can be much greater.
Greenhouse and nursery products, Oregon’s No. 1 sector,
will make history this year as the state’s first sector
to pass the $1 billion mark, according to Pokarney.
Blueberries are expected to earn record prices, and production
will easily break 40 million pounds, 5 million more than last
year, says Bryan Ostlund with the Oregon Blueberry
Commission.
The unprecedented growth is attributed to the diet and health
craze over the antioxidants in blueberries. “Nurseries
can’t get enough plants out the door,” Ostlund
says.
Potatoes are selling for $5.65 per 100 pounds, compared to
$4.90 in 2006, because supply is down.
Pears are up to $568 per ton over $527 last year. Grapes,
Oregon’s fastest-growing commodity, doubled in production
value from 2004 to 2006, and Pokarney says similar growth can
be expected this year.
On the downside, onion prices declined significantly from last
year, at $5.06 per 100 pounds compared to $10.90 in 2006. And
Pokarney notes that while prices are up for many crops, costs
are also increasing.
An economic report for 2006, released in October, shows net
farm income in Oregon was down 9.6% from 2005. While gross
income is at all-time highs, costs are also escalating because
of rising fertilizer, pesticide and fuel costs and increased
property
taxes.
AMBER NOBE
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