Advertisement

"It is an exciting time to be involved in agriculture. Commodity prices are extremely strong...It is a very positive situation...and we are hopeful for a good outcome," stated Sanilac County MSU Extension Director Martin Nagelkirk.

"I don't think people realize how much of a boost it is in our economy. The ripple effect is very positive for the local community," he added.

"It is an exciting time for ag producters and anybody related to the ag economy," said Dave Tage, president of TNT Equipment of Sandusky. "Crop prices are at records or near records - granted input costs are up."

"Tri-County (Equipment) has seen growth in parts, service and machinery for all five locations in 2007, and it looks like it will continue in 2008," said Jim Grice of Tri-County, Sandusky. "Farmers seem to be upbeat. We're looking for another good year."

Nagelkirk estimates the value of traditional field crops in Sanilac County for 2008 will be in the neighborhood of $150 to $200 million.

That doesn't include the value of dairy cattle or livestock.

MSU Dairy Agent Craig Thomas said 2008 will not be as good as 2007, which set a record for milk prices, but it promises to be a good year.

"The cost of production is up and milk prices have come down somewhat," he noted.

The total value of milk would be around $1,137,500 based on 26,000 to 27,000 dairy cows which produce approximately 20,000 gallons of milk per cow per year, with a value of $17-$18 per hun-dredweight and eight gallons of milk per hundredweight.

Some commodity prices are so high that farmers will be shifting their crop ratios to make more profit.

"It started last fall. They are substituting wheat acres, because it is extremely strong in the market place," Nagelkirk said. He thinks farmers put 15-20% more acreage into wheat last fall than the previous year.

At this point, he thinks the local wheat crop will do okay.

"It has been challenged a little bit...With the water, and freeze-thaw (cycle) it is a bit worrisome. But it is coming through fairly well at this juncture," Nagelkirk.

"Last year there was actually a jump in corn acreage because of the market. Because the others are also strong, that is falling back. Soybeans and wheat are gaining," he said.

Dry bean acreage is holding its own because the companies are offering good winter bean contracts promising a set delivery price in order to keep pace with other commodities.

"They are wresting over how much ground they get. You do that through pricing," Nagelkirk explained.

The biggest issues this year will be the cost and quantity of farm supplies. There will be counter sticker shock for fuel and fertilizer.

"The cost of production is extremely strong...It is upping the stakes of doing business... The last few years fertilizer prices have more than doubled, almost tripled," he noted.

He added, "I don't ever remember a time the supply is so challenged. I'm not even sure we will be able to get some varieties," Nagelkirk stated.

"We've had 25 years of inflation in two years, and it is a difficult thing for everybody to understand, stated Renzie R. Milarch, manager of the Sandusky Crop Production Services.

"The price of inputs has gone up somewhere from 50% to 100%. Commodity prices had gone up prior to last year, but inputs have gone up even more. The farmers have a lot of exposure because of the amount of money they have to use...There is always the fear commodity prices will go down and the input prices remain high," said Milarch.