Many people overlook the importance of agriculture in Idaho’s economy. Paul Patterson, an economist at the University of Idaho-Idaho Falls extension, authored two reports that proves this.
Agriculture’s contribution to economy can be measured by gross measurement and base measurement. Gross measurement is all the measures of economic activity (output, employment, wages and value-added). Base measure on the other hand gives credit to the industry that brings new dollars into the region through exports for the economic activity that it supports in the economy.
Each mean of measurement shows a different impact on the economy. Base measure analysis shows that agriculture has the biggest impact on Idaho.
“Agriculture is the main export item of value we have in Idaho,” said Don Hale, a forage producer and president of the Idaho Hay and Forage Association. “It’s the best export we have.”
If using gross measure analysis, the data is similar, but slightly different. This analysis shows that 11 percent of Idaho’s income in 2006, paying $1.2 billion in wages. Although agriculture was the top contributor, it is expected 2008 reports will show that the record levels set in 2007 will drop by five percent.
A bigger shock than how much money agriculture brings in may be that many expect potato farms to make the biggest contribution. This is not true, in fact dairy cattle is the center of Idaho’s agricutlure in the Magic Valley. Potatoes bring in 15 percent of cash receipts while milk brings in 34 percent.
With impressive prices, Hale believes that the increased cost of inputs like seed, equipment, fertilizer and twine will have a huge effect on the overall numbers.
Regardless what issues may seem to appear, now is as good of time as any to make your dreams of owning of farm reality. Farm loans are available through Farm Plus Financial and rates are at historic lows. Farm Plus works with various government agencies to help people own a farm of their choice across the country. For more information on farm loans please contact a representative today. Contact one via telephone at 866-929-5585 or visit online.