Despite Drought, Ag Revenues May Set Records
Despite experiencing one of the worse droughts in U.S. history, agriculture economists in Kentucky are projecting record cash receipts for the state’s farmers. During their annual outlook during the Kentucky Farm Bureau conference, economists from the University of Kentucky say they think Kentucky will break the $5-billion barrier in revenues this year.
Lead economist Will Snell says high prices for many crops -- along will increased exports and insurance payouts -- helped offset the drought for many agricultural industries in Kentucky.
“Overall my message is that even though we all were challenged much with the weather this past year, certainly price effects have had a positive effect upon our Kentucky ag economy and overall mark still optimism remains that we’re looking at a very good 2013,” he says.
Snell says next year is likely to set record revenue numbers again, in the $5.5 billion range. Of course, weather-related disasters and the general economy will once again dictate final revenues. But he says increasing crop-selling prices is likely to offset those once again.