Farm Economy

Despite a 2% decrease in overall farm expenses, net farm income in Idaho increased 15% in 2017. It was the state’s first increases in net farm income in 4 years. U. of I ag economist Garth Taylor says dairy leads the way in Idaho. “It’s milk not potatoes that are driving the state.” Overall crops were up 3% with dry beans reporting a 33% increase in cash receipts and potatoes a 15% increase. Also onions are up a great deal.” The livestock sector enjoyed a 7% uptick for a total of $4.6 billion in cash receipts. “Over 60% of our cash receipts are from livestock and when you start to add in feed and hay and everything else, we may be up 75%-80%” Looking to 2018, Dr. Taylor says…”Were looking at hay as being down and it follows corn.” Export markets are expected to rebound in 2018 and energy costs will hold steady. Farmers should also expect to see rising interest rates this year.