Benton's 2007 ag story mostly improved

Oregon agricultural sales reached nearly $4.9 billion for 2007, up more than 10 percent over the previous year, according to preliminary data released by the Oregon State University Extension Service.

"Primarily, we've been in a steady upward trend for the last few years," said Larry Burt, OSU Extension Service economist. And that could continue into 2008 because of strong grain prices and other factors.

That doesn't mean farmers and ranchers are living the high life, however. While sales are up, so are the costs of diesel, fertilizer, pesticides, feed, labor and other factors associated with raising crops and livestock. And that's putting a stress on family agri-businesses.

"It's maybe the No. 1 thing we're hearing about right now. They are really feeling the pinch on the cost of production," Burt said.

South Benton County farmer Eric Horning said the cost of one type of fertilizer went from $375 per ton in 2006 to $1,100 per ton in 2008. "Numbers are still climbing," he added. "We're seeing a pretty steady increase on all of the fertilizers."

Diesel fuel, commonly used to power field equipment, is up between 40 and 50 cents per gallon, depending on the day.

The increasing cost of crude oil and overseas buyers tapping into the weak dollar and raising demand and prices are partly to blame, said Doug Hoffman, president and CEO of Wilco Farm Store, based in Mount Angel.

"The farmer today is handling a lot of money. It's going in, and it's flowing out very fast. Overall, most of them are doing OK. The good ones are going to continue to do well. There's going to be a real weeding out of the poor ones," he said.

"I think we are in for some really difficult times ahead," Hoffman added.

Benton County was 13th among Oregon's 36 counties in farm and ranch sales, with more than $111 million for 2007, growing 2 percent over the previous year, according to Extension Service data.

As is usual, Marion County was the state's leader, with $615 million in agricultural sales. Clackamas County was second, with $410 million, followed by Umatilla County, with $358 million.

Linn County was eighth in the state, with $2.95 million in sales for 2007, up nearly 5 percent from 2006. Linn County, long known as "the grass seed capital of the world," led the state with 262,000 acres harvested, primarily in grass seed.

Benton County had 63,000 acres harvested. Oregon saw a 1 percent drop in acres harvested to 2.9 million.

Another big Benton County agricultural performer was dairy sales, which climbed to nearly $9 million for 2007, a 53 percent jump.

The largest slump in sales in Benton County was for cattle and calves, which dropped 55 percent, to $2.27 million.

Kyle Odegard covers Oregon State University. He can be contacted at kyle.odegard@lee.net or 758-9523.

BY THE NUMBERS

Benton County

Farm sales: $111 million

Change: up 2 percent

Acres harvested: 63,000

Linn County

Farm sales: $295 million

Change: up 5 percent

Acres harvested: 262,000

Oregon

Farm sales: $4.9 billion

Change: up 10 percent

Acres harvested: 2.9 million