Production Land Profits
As featured in Land Investor Magazine Vol. 1
The University of Idaho agricultural economists, Garth Taylor and Ben Eborn, reported an 11% increase in 2014 for Idaho farm and ranch net income. Additionally, there was a 6% decrease in expenses, which resulted in a 46% increase overall in reported income for 2014, up to $4.53 billion net, a record set by Idaho farmers and ranches. Interestingly, there was a decrease nationwide of over 20%. American agriculture remains a bright spot in our nation’s economy and especially across the West. The theory of farming and ranching being profitable in tougher times is bearing itself true. It seems that trend is continuing in 2015, with the future looking bright as well.
There was low snow pack in the winter of 2014 through early 2015, but this year’s spring rains have been a boon for needed moisture and crops are looking good. In the three year period from 2011 to 2013, Idaho farm income alone has seen an increase to $900 million, per the USDA, and farm and ranch operators are in a very good position. Even more interesting is that the dollar per acre in Idaho is still a relative bargain in comparison to some of the prices seen in the Midwest. Idaho has become a national leader in agricultural exports that include potatoes, livestock feeds, wheat, dairy, and feed grains. One reason for that is the adjudication process of water rights in Idaho and what it has done for the confidence of the land owners and for the future of Idaho agriculture lands.
This is good news for our national economy and good news for Idaho and other states in the Northwest. If expansion into the agriculture market has been on your mind or you want to continue the ride, do not overlook the states in the Rocky Mountain West, especially Idaho.
As seen in Land Investor Volume 3 Written by Max Hansen Imagine a six point bull elk crashing through a thick stand of lodge-pole pine; a dove darting from a mesquite thicket; or attempting to cast into a riffle in the face of a mountain breeze. They’re all moving targets you may have faced at […]
By Bill Nutt When reviewing my insurance policies recently, I realized that we have owned our ranch near Twin Bridges, Montana for over a decade. Certainly that isn’t long enough to become an expert, but I have learned a few things I’d like to pass along to those considering a ranch purchase. Here’s a list […]