Home Archives December 2007 Ag sets record prices but costs nip income

Ag sets record prices but costs nip income

| Print |  Email
Saturday, December 01, 2007

{safe_alt_text}

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


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

More Articles

Revenge Forestry

November/December 2014
Tuesday, October 14, 2014
BY JONATHAN FROCHTZWAJG

A flare-up in the Elliott Forest raises questions about détente in Oregon’s timber wars.


Read more...

Growing a mobility cluster

News
Friday, October 31, 2014
0414 bikes bd2f6052BY LINDA BAKER | OB EDITOR

Why are there so few transportation startups in Portland?  The city’s leadership in bike, transit and pedestrian transportation has been well-documented.  But that was then — when government and nonprofits paved the way for a new, less auto centric way of life.


Read more...

Healthcare pullback

News
Thursday, November 20, 2014
112014-boehnercare-thumbBY JASON NORRIS | OB CONTRIBUTOR

Each month for Oregon Business, we assess factors that are shaping current capital market activity—and what they mean to investors. Here we take a look at two major developments regarding possible rollbacks of the Affordable Care Act (ACA).


Read more...

Measure 91: What Oregon Businesses Need to Know

Contributed Blogs
Wednesday, October 15, 2014
91 thumbBY DIANE BUISMAN

Some common misconceptions employers have about marijuana.


Read more...

Fly Zone

November/December 2014
Wednesday, October 22, 2014
BY JOE ROJAS-BURKE

The black soldier fly’s larvae are among the most ravenous and least picky eaters on earth.


Read more...

Three problems with Obama's immigration order

News
Wednesday, November 26, 2014

BY NISHANT BHAJARIA | OP-ED CONTRIBUTOR112614-immigration-thumb

By now, anyone who knows about it has a position on President Obama’s executive order on immigration. The executive order is the outcome of failed attempts at getting a bill through the normal legislative process. Both Obama and his predecessor came close, but not close enough since the process broke down multiple times.


Read more...

What I'm Reading

November/December 2014
Wednesday, October 22, 2014

Peter Lizotte at ACME Business Solutions and Roger Busse at Pacific Continental Bank share their favorite reads.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS