Last modified: Saturday, June 27, 2009 10:32 PM PDT Larry Meyer | Argus Observer Jim Cruz operates a self-propelled chemical applicator for Hasebe Farms near Ontario. Ag income is good but does not always keep up with costs. Still going strong By Larry Meyer Argus Observer ONTARIO — Even in the middle of a recession, agriculture sales in Malheur County continue to be high, but with mounting costs of production and lower or stagnant crop prices, many farmers still struggle to make a profit. According to estimates provided by the Oregon State University Extension Service, Malheur County’s gross agriculture income for 2008 was nearly $255 million, with cattle leading the way at approximately $99 million in estimated gross sales. Onions were a distant second to beef with sales at $45 million, followed by alfalfa hay at between $22 million and $27 million. Percentage-wise, cattle accounted for 36 percent of sales, onions 16 percent, other crops 16 percent and hay 10 percent. Other crops include fruit, vegetable seed, spearmint and peppermint. Although he could not quote exact figures, Malheur County, Oregon State University Extension Service chairman Lynn Jensen said the economic impact of agriculture on the county is somewhere more 50 percent. “Corn and wheat compete for land,” Jensen said. Sugar beets, potatoes and about half of the onions are growing under contract, he said. How much corn or wheat is grown depends on which crop growers feel will garner the better price. Growers contract at least part of the onions as a hedge against possible low prices. Still, the face of agriculture is changing, Jensen said. “Farms are getting bigger,” he said. “That’s a general trend.” With prices of equipment and other items used on the farm, it requires more ground to “stay up,” he said. A report issued by Jason Yohannan, state regional economist, who gleaned his information from the 2007 Census of Agriculture, said that while the average Oregon farm is smaller, the farms in Malheur County grew in size, to an average of 937 acres. While the average farm sizes in Baker, Grant, Harney and Wallowa counties are larger, they decreased in size, according the report. According to the 2007 data, nearly two out of three Oregon farms reported net losses, but Malheur County was one of only six counties with more profitable farms than unprofitable ones, Yohannan said. The other five counties were Gilliam, Lake, Morrow, Sherman and Tillamook. Local farmer and Malheur County Commissioner Louis Wettstein said there are still more profitable farms than not, but it is still a tough market for many. “It’s getting tighter all the time,” he said. The prices of the commodities his family farming operation grows are about the same as last year, he said, with costs of farming, such as fuel and fertilizer, climbing all the time, making the margins tighter. Still, “It looks like a decent year,” he said. Aggregate net farm income was positive in all six Eastern Oregon counties, Yohannan’s report said, with Malheur County’s farms clearing more than $50 million. Also, Malheur County’s per-farm sales of $245,436 ranked in the top tier of Oregon counties, trailing only Morrow and Tillamook counties. Malheur County still has more than 50 percent of farm operators stating that farming is still their primary occupation, according to the Census of Agriculture. Check out more local news at www.argusobserver.com