Outlook 2011: Ohio’s agricultural industry continues to fluctuate with higher input costs; more emphasis on local foods

  • by Jennifer Kneuss
  • January 7, 2011
  • 289
                        
Agriculture is Ohio’s number one industry. Over $98 billion dollars a year flows into the state economy through the hard work of those involved in all phases of farming. 2011 will no doubt continue to bring challenges to those who make agriculture a way of life. At the state level, the future of the Ohio State University Extension services, which provide a crucial supportive service to farmers, and has experienced large budget slashes in recent years, continues to be a concern for many, including the Ohio Farm Bureau Federation, the largest farmer’s group in the state. In 2011 they also plan on focusing on Ohio’s Current Agricultural Use Valuation (CAUV) tax law, which allows land tax benefits for landowners who utilize their land for agricultural purposes, and lobbying to ensure that the program is not abused by those not involved in agriculture. Concerns about food safety, as well as individual farmers’ personal property rights, are also at the forefront. Tuscarawas County Farm Bureau President Steve Quillen, a dairy farmer, has been watching 2011 predictions closely. “Starting in the middle of last summer until now, milk prices have been very good. They were $20.12 per hundredweight last month. But last year at this time we were at 9 bucks, which was below our costs. We are now catching up on a lot of much needed repairs. The increase is because we are in a worldwide market – other countries have had poor growing conditions. Input costs are still high. When corn prices shot up, the seed and fertilizer prices went up. Just because we have $20 milk, doesn’t mean we are getting that extra $10. For those that don’t grow their own corn, it is going to be extremely challenging for them to keep up with the cost.” He notes that input costs most likely will climb, particularly later this year. Quillen also sees robotic milkers being introduced into Ohio this year, and more farmers computerizing all of their record keeping to optimize production. Ron Becker has been with the Wooster office of the Ohio State Extension office for more than 28 years, and is the Extension Program Coordinator for Agriculture and Natural Resources. He has seen many fluctuations in the agricultural industry. “Personally, on the agronomic side, things look good. But unfortunately, seed and fertilizer costs will be going up as well. Farmers are not getting rich, as the input suppliers are getting a chunk of those profits. With the way that the futures look, corn has been doing nothing but going up for the last several months. For those who don’t grow their own feed, they have to buy it from someone else. That is getting costly,” said Becker. “The thought is that milk prices may go down, but I think farmers are going to be more cautious this time while they have the good prices. One of the high corn and soybean price factors is that there is not a lot of additional land out there available to farm. The amount of land available is going down all the time, because of urban sprawl. Much of the land now has housing on it.” “Another of the things being brought up is that there is going to be a shortage of cotton worldwide,” noted Becker. “Your jeans and clothing are going to be costing more.” The ag agent also believes there will be growth for small farmers. “The local foods movement is growing by leaps and bounds. The market is out there. Consumers want something grown closer, not shipped cross-country. With the economy as it is, people want to keep their dollars within the community, so this helps locally. I see things in the produce area going to go back to more the way it was 50 or 60 years ago. I think more and more people are going to buy locally.” Note: A 2011 OSU Extension Farm Outlook Meeting, open to the public, will be held January 17, in Wooster, OH. State experts will address Grain Market Outlook, Dairy Cow Number and Prices, and Crop Inputs and Land Prices for 2011. For more information, call OSU Extension Wayne County, at 330-264-8722, or email lingle.1@.osu.edu.


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