Dairy leads Idaho ’08 farm receipts

The dairy industry held on to its status as Idaho agriculture’s leading cash cow last year.

Cash receipts from Idaho’s farms rose 11 percent to a record $6.3 billion in 2008, buoyed in part by a 5 percent increase in milk receipts, according to projections by University of Idaho agricultural economists, the university’s College of Agricultural and Life Sciences said in a release. The 2007 total was nearly $5.7 billion.

Milk sales topped the list of winners in the agricultural sector with a contribution of $2.153 billion, an increase of $103 million from 2007. Milk provided more than a third of all of Idaho agriculture’s sales, according to the publication, The Financial Condition of Idaho Agriculture: 2008 Projections, by Ben Eborn, Paul Patterson and Garth Taylor.

“This report shows that agriculture is an important part of Idaho’s economy,” said John Hammel, College of Agricultural and Life Sciences dean. “It is major and it is stable.”

Crops posted a larger percentage increase, 22 percent, compared to the livestock sector’s 2 percent increase.

Potato sales rose to $800 million, a 13 percent jump over 2007, followed closely by wheat sales of $707 million, a 55 percent increase. Hay sales grew 47 percent in 2008 to $673 million.

Barley posted the largest percentage increase, 62 percent, to $231 million.

Net farm income slipped 5 percent to $1.68 billion from 2007’s high, eroded by higher fuel prices and other expenses. The agricultural economists’ projected Idaho net farm income for 2008 ranked second only to 2007’s $1.774 billion during the last decade.

“Agriculture is part of the economic portfolio of the state,” Hammel said. “This report sends a clear message that it is important to maintain Idaho’s investment in a valuable industry, and that we need to stop building houses on our best farmland.”

Dairy was Idaho agriculture’s biggest contributor for the fifth consecutive year, pushing livestock revenues ahead of crops for the eighth year straight.

The growth of milk cash receipts reflected an 8 percent increase in production that offset a 3 percent slide in price. Idaho milk production topped 1 billion pounds a month 10 times during the year.

“The shift in the Idaho agricultural economy from crops to livestock has been remarkably swift and dramatic,” the authors said.

Milk’s rise from 25 percent of the state’s total farm cash receipts in 1998 to 34 percent in 2008 shifted the geographic center of Idaho’s agricultural economy to the Magic Valley surrounding Twin Falls in south central Idaho.

The dairy industry’s strength overrode a projected 2 percent or $22 million drop in cattle and calf sales to $1.07 billion. Livestock cash receipts totaled $3.344 billion or 53 percent of total farmgate cash receipts.

Hay sales reflected strong demand from dairies, with alfalfa production rising 4 percent to nearly 5 million tons. Other hay production rose 20 percent to nearly 750,000 tons, and prices jumped 42 percent.

Potato growers enjoyed a 13 percent hike in sales receipts while total production slid 12 percent to 115 million hundredweight. Production per acre improved by 500 pounds. The strong 22 percent jump in prices offset the production decline.

Grains provided the most dramatic storyline for Idaho growers during 2008. Barley prices soared 31 percent and the yield rose 13 percent, fed by a 6 bushel per acre increase. Barley cash receipts jumped 62 percent.

Wheat provided its own share of drama. A dramatic price spike propelled revenues up 55 percent from 2007 to $707 million.

Sugarbeet sales fell 30 percent to $147 million, reflecting a 38 percent production drop. Onion sales dipped 8 percent to $46 million.

Other revenues to Idaho farms showed generally modest increases except for government payments, which dropped 4 percent to $116 million, a total less than 2 percent of all farm revenues. Government payments have declined annually since 2000 to less than half that year’s total.

Total farm expenses rose 15 percent, largely resulting from a 35 percent jump in fuel, fertilizer and electricity costs.