Economist: More Risk Required In Farming
2011 was a record-breaking year for Idaho agriculture.
In January, we told you about big growth in the industry. Farmers took in almost $7.5 billion in 2011, up from 2010?s $5.76 billion.
But those numbers don?t mean everything is coming up roses.
An expert ag forecaster spoke to farmers and ag business owners about the future on Tuesday.
For wheat and potato farmer Jordan Thomas, a big year for Idaho growers has been a double-edged sword.
?The biggest thing is our fertilizers and fuels,? he said.
With the rising costs of supplies for farmers, it costs more money to produce.
?We definitely have good commodity prices, but a lot of that has been offset by those higher costs,? said Thomas.
That?s where Wells Fargo agricultural economist Michael Swanson comes in. He spoke to dozens of agricultural producers Tuesday in Idaho Falls. Farmers like Thomas want to know if 2011?s good year is just a fluke.
?And the answer is, it?s not a fluke, but there?s going to be a lot more risk in farming and ranching, and they have to be ready for dealing with it,? Swanson said.
And Swanson said ?dealing with it? means understanding input costs will likely continuye to grow. But for the farmer willing to invest, to take that risk, a swing in exports in bolstering the payback.
?Those global consumers have more money now,? he said. ?And U.S. products are world-class products, so it?s really worked well for us.?
Swanson said an upswing in exports brought the nation?s agriculture out of a deep rut. He said in 2006, the U.S. had an agricultural trade deficit of about $20 billion. In 2011 we finished with a $23 billion surplus.
