U.S.
agriculture figures say Oregon farmers’ profits fell
Farmers
blame rising fuel, labor expenses
September 28, 2006
BEND (AP) — Newly-released national agriculture statistics show that
Oregon farmers saw their profits take a dive in 2005.
Oregon farmers’ gross sales of all crops and livestock-related products
from 2004 to 2005 increased 6 percent from $4.47 billion to $4.73 billion,
according to a nationwide report released by the U.S. Department of
Agriculture’s Economic Research Service.
But profits fell 24 percent, from $1.38 billion to $1.05 billion, due to
increasing costs.
‘‘The numbers are down from what turned out to be a good year in 2004,
but the overall health of the industry is much better than it was earlier
this decade and in the late-’90s,’’ Katy Coby, director of the
Oregon Department of Agriculture, said in a written statement
Last year was still Oregon’s secondhighest year for net farm income
recorded by the USDA, said Bruce Pokarney, ODA spokesman.
Farmers, though, said they are feeling the strain from rising expenses in
areas like fuel and labor.
‘‘Fuel costs have gone through the roof,’’ said Jere Breese, owner
of Breese Beef in Prineville.
Selling products on-site from farm
In response, Breese began selling his grass-fed beef, vegetable and garden
products, and fresh strawberries on-site at his farm east of town and at
farmers’ markets during the summer.
‘‘Instead of selling a 750-pound steer for 80 cents a pound, we’re
going to sell a 700-pound carcass at $1.80 or $2 per pound,’’ he said.
‘‘We’re getting paid the whole way through.
The cost of energy-related products, including fertilizers, rose at an
overall rate of nearly 30 percent from 2004 to 2005, said Brent Searle,
special assistant to ODA’s director
And labor costs went up 11 percent in 2005 for Oregon farmers, from $802.5
million to $881.4 million, he said.
