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             John Cross, general manager for Newell Potato Cooperative, doesn’t think the country — specifically farming — is in a recession.
   He points out that prices for core crops are the highest they’ve been in years.
   But others were more hesitant, saying that the cost of producing crops is increasing faster than the prices they are sold for.
   “I don’t see a super benefit,” said Donnie Boyd of Floyd A. Boyd Co.
   The split opinion on the current economy among those in agriculture is an example of how a recession can bring both hope and trepidation.
   Cross and farmer- rancher Tracey Liskey said that aspects of the agricultural market are doing very well. Factors such as demand for ethanol and growing markets in China and India have increased demand for grain. That demand increases the prices of other commodities as growers switch crops, reducing acreages for crops such as potatoes and hay.
   Cross pointed out that the current economy also encourages growers to produce surpluses to take advantage of the high prices. The extra money can be translated into further purchases such as new equipment.
   “If you show a grower a profit, he’ll show you a surplus,” he said.
   But Boyd and Bob Gasser of Basin Fertilizer aren’t as quick to label these as good times for agriculture.
   Expenses such as labor, fertilizer and fuel are also increasing and, in some cases, outstripping the revenue growers are bringing in. Liskey also pointed out that not all producers benefit from the high grain prices. Some ranchers and feedlot owners could struggle as the cost of maintaining their livestock increases.

Klamath Water Users Association
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