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2000 proved costly for most
The Times-News
January 2, 2001
 
TWIN FALLS -- This past year has been one of turmoil for most farmers and ranchers in the Magic Valley. For the most part prices came in below cost of production. Milk prices hovered $2 below break-even, affecting not only dairymen, but crop farmers who sell them feed. Even sugar beets, long heralded as the valley's salvation crop, suffered hard times as sugar prices dropped and grower retains in the still fledging Snake River Sugar co-op grew to offset losses.

The only real bright spots in prices were seen in cattle and pork, which both increased significantly over the past couple of years. producers of those commodities, however, say the price jump comes nowhere close to making up for huge losses in the years previous and rising costs. Hay held steady, despite falling prices in the dairy sector, and wiener hay even enjoyed an appealing increase in price.

Environmental issues also marked the year, with all sectors battling negative public opinion and mounting regulations.

Sugar beets, like most crops in the Magic Valley, came piling in at harvest, but prices tumbled under the pressure too much supply.  Carol Ryan Dumas/AG Weekly

Overall, a summary of the past year, by commodity, scores more lows than highs.

Dairy producers suffered a double whammy with record-low milk prices and public animosity. Prices were painfully below cost of production all year. In addition, the dairy industry was plagued by complaints over odor and the handling of waste. Demand for tighter regulation and narrower zoning laws were the order of the day.

It was a mixed bag for grain growers. Production was up, but prices remained down. The industry scored a few gains in international trade with foreign markets opening up, but lost a few as well with the hoopla over GMO grains.

Potato growers took a big hit again this year. An unanticipated huge crop saw prices plummet. In addition imports of process-grade potatoes outnumbered domestic production. Growers failed in an initial attempt at a federal diversion program and are now going it alone to try to remove some product from the market.

"A little below average" is how bean commissioner Ken High sums up the year 2000. Bean prices are still depressed, and because of an unusually hot summer, production was down. Acres were significantly down from '99, too, which meant less of the commodity on the market, High said.

Prices for pintos -- by far Idaho's most widely grown commercial bean -- stayed at $15 per hundredweight most of the year, rising to $18 for a couple of months during and immediately after harvest.

Though Amalgamated shareholders were unhappy with a 25-percent dip in sugar prices at year's beginning, they were able to make up for some of that with record production. An early spring contributed to a company average of 29 tons per acre and sugar content into the 17-percent range. The result is that factories have about 7 percent to 8 percent more beets to slice this winter than last.

Hay held steady despite an ailing dairy market. Buyers are becoming pickier and more aggressive in their pricing, but growers were still able to sell premium and mixer hay at a good price. Wiener hay jumped a healthy $10 to $15 from last year, and growers picked up a little unexpected business due to fire and drought on grazing land.

Despite the grazing challenges, Cattle proved a bright spot in the mostly dismal agricultural saga this year. Prices climbed, settling in the $1.10 to $1.20 range for 450 to 500 lb steers. With break-even in the 90s and prices just at that last year after falling well below for several years earlier, cattlemen were on top of the cycle, making a decent profit. Continuing consolidation in the industry kept producers uneasy, however, as they watched buying power concentrate.

Pork also showed improvement, with prices in the 40-cent per pound range this year after the pitiful 13 cents per pound producers were getting last year. The increase is welcome but doesn't make up for years of losses in that sector. Hog producers also had the dubious of honor of the first livestock sector to be the focus an all out public and legislative initiative to enact state guidelines for CAFOs.

Sheep prices also improved, bringing some much needed relief to producers. Congressional support to restructure the industry also lightened the load.

Aquaculture fared well with trout prices maintaining at a profitable trend. Industry insiders are growing anxious, however, as the economy softens and history tells them consumers are less likely to buy seafood in tough times.