Oregon’s Net Farm Income Improved in 2015

The bottom line for Oregon farmers looked a little better in 2015 according to a report by the USDA which showed a net farm income for the state to be $1.2 billion.

Oregon Department of Agriculture’s Jim Johnson said decreases in expenses were the key.

“Overall, the cost of labor to their operations is down as a general rule. Energy costs are down– fuel costs. Several other tangibles, but those are the two big ones.”

Labor costs dropped 21 percent in 2015 which helped the net farm income be up 58 percent over 2014.

Johnson said net farm income can seem like an intangible thought, but it is a good picture of a farmer’s bottom line.

“You could have the best production year on record, but if your energy prices are super high, your labor costs are just tremendous, fertilizer costs are such, your rent values are high, you could have the best production year and still have a bad overall year.”

Based on the latest net farm income, the average farmer in Oregon earned about $35,000 in 2015.