FOR IMMEDIATE RELEASE

Friday, December 7, 2007

For more information contact:
Bill Clary

(502) 564-4696

COMMISSIONER FARMER APPLAUDS PRODUCERS
FOR RECORD CASH RECEIPTS IN 2007

FRANKFORT, Ky. — Agriculture Commissioner Richie Farmer congratulated Kentucky farmers on weathering an extended April freeze and a withering summer drought to achieve record receipts for their farm products in 2007.

University of Kentucky economists estimated 2007 farmgate receipts at $4.22 billion, eclipsing the 2004 record of $4.13 billion. The economists predicted that Kentucky farmers will set another record in 2008 at an estimated $4.294 billion. The estimates were announced Thursday at the 88th annual Kentucky Farm Bureau Federation annual meeting in Louisville.

“I am constantly amazed but never surprised by Kentucky’s farmers,” Commissioner Farmer said. “They persevered in a very poor growing season. That shows how good our farmers are at what they do. It also shows that Kentucky’s efforts to diversify its agriculture economy are working.”

Net farm income is expected to remain strong in 2007 but is likely to be affected by the drought, lower government payments and higher production costs, the economists said. A continuing decline in government payments and further increases in input prices are expected to affect net farm income again next year.

Cash receipts for livestock in 2007 exceeded $3 billion, a 10.9 percent increase over 2006, as equine, cattle and poultry prices remained strong, UK reported. Equine receipts surpassed $1.1 billion in another year of very strong thoroughbred sales. Income from cattle increased in part because some producers sent more animals than usual to market after the weather damaged hay and pastures. Driven by strong export markets, milk prices in Kentucky and the U.S. have increased significantly, but the number of dairy cattle in Kentucky continues to decline, contrary to the nationwide herd expansion.

Crop receipts fell 6.5 percent to $1.215 billion in large part because of the drought. Cash receipts for corn jumped more than 35 percent because of a significant increase in acreage and strong prices, but tobacco receipts were lower due to poor growing and curing conditions. Lower yields and declines in acreage harvested cut the soybean and winter wheat crops in half in 2007. The fruit crop was damaged by the freeze, but vegetable income was up 15 percent to $23 million.

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To read the Agriculture Economic Outlook report, click here.