Press Releases
Subcommittee Reviews State of U.S. Farm Economy
Washington, DC,
September 29, 2005
Liz Friedlander (202) 225-1564 James Ryder (202) 225-0020 Chairman Moran voiced concern that factors such as high energy prices may further steepen the decline of farm income projections. “I am concerned that these numbers do not portray the economic conditions being felt in the heart of farm country. They seem to mask the real personal and economic pain that some refer to as the “perfect storm”: record high fuel and input prices combined with commodity prices that are declining steadily but not at a level to trigger a countercyclical payment,” said Chairman Moran. USDA Chief Economist Keith Collins testified that higher energy prices are already cutting into net farm income and “will likely continue to affect production input and marketing costs in 2006.” According to an Economic Research (ERS) report, the total production expenses in 2005 are projected to be $218.7 billion, up $8.9 billion (4 percent). Rising costs of energy-based inputs and increasing interest expenses will account for over 60 percent of the increase in costs in 2005. Collins also noted that while energy-related costs have contributed to increased farm production expenses, “net cash farm income has continued to rise as cash receipts have stayed strong.” The Subcommittee will continue to monitor the factors influencing the farm economy in the U.S. and the impact of these factors on U.S. producers. WITNESS LIST Panel I Dr. Howard Gruenspecht, Deputy Administrator, Energy Information Administration, United States Department of Energy, Washington, DC. Panel II Mr. Sam Funk, Administrator, Kansas Farm Management Association, Kansas State University, Manhattan, Kansas Dr. Daryll E. Ray, Director, Agricultural Policy Analysis Center, University of Tennessee, Knoxville, Tennessee Dr. Nicholas Piggot, Associate Professor, North Carolina State University, Raleigh, North Carolina ### http://democrats-agriculture.house.gov ### |