January 25, 2012
www.gfb.org
Vol. 30 No. 4
CROP OUTLOOK, LABOR & FARM BILL FOCUS OF AG FORECAST MEETINGS The farm gate value of Georgia's agriculture commodities hit a record high of $12 billion in 2010, and the 2011 farm gate report, to be calculated this year, is expected to be higher, University of Georgia Economist Nathan Smith told members of Georgia's agriculture community attending the 2012 Georgia Ag Forecast meeting held in Macon, Jan. 23. A series of five meetings are being held across Georgia this week. “Crop prices should remain relatively high because of the tight supply situation,” Smith said. He tempered the good news by saying farmers will see production costs rise 15 to 20 percent in 2012. Higher fertilizer and seed prices are the main reasons for rising production costs. Equipment costs are expected to increase, and higher commodity prices could result in increasing rental rates for row crop land as farmers look to expand acreage to take advantage of higher commodity prices. Smith “Corn acreage increased in Georgia last year, and if we have good planting weather, and we get a little bit more rain to help replenish surface water, corn will probably hang onto the acres it claimed last year,” Smith said. Smith predicts Georgia peanut acreage could top 600,000 acres this year as the market looks to correct the low supply of peanuts resulting from high cotton prices in 2010. Smith predicts fewer cotton acres this year. Agribusiness lawyer Nowell Berreth, with the Atlanta law firm Alston & Bird, gave an overview of the H-2A guest worker program. He said about 33 Georgia farmers are currently using the program to bring in about 7,000 workers each year. Berreth said one of the biggest problems with H-2A is that it only helps farmers secure seasonal workers for a maximum stay of 10 months in the U.S. while segments of agriculture, like dairy and poultry, need year-round workers. American Farm Bureau Congressional Relations Senior Director Mary Kay Thatcher gave the farm bill update at the Macon meeting, saying she thinks there’s only a 50 percent chance Congress will pass a farm bill this year. Congress must pass an extension of the current bill if it fails to pass a new one by Oct. 1, when the current bill expires. Georgia Farm Bureau Legislative Director Jon Huffmaster gave the update at the other meetings. ‘Agriculture is proven to be the rock of the economy of the state, but we need not sit back and get comfortable,” GFB President Zippy Duvall said at the Macon meeting. “We need you to be part of our organization and take part in our communications with Agriculture Commissioner Gary Black and the College of Agriculture because we're all working on these issues to make sure we protect our industry and rural Georgia. It’s going to be an exciting year.”