Assuming that Mother Nature cooperates, farmers are in for a pay raise this year.
It's not going to be the kind of increase that will allow the farmers to buy a luxury automobile, but it could be the year to replace an aging pickup truck.
Economists at the U.S. Department of Agriculture are projecting that net farm income will rise 4.1 percent this year.
Farmers in Maryland and across the country are expected to bank $92.3 billion by the end of the harvest season, up from the $88.7 billion that they pocketed last year.
And they are expected to do even better than these numbers indicate. The government is forecasting that net cash income will reach a record $99.6 billion this year.
Net cash income is a farmer's income minus production costs and depreciation of equipment. The projected gain would be $9 billion, or 10 percent, above last year's level, which was the previous record.
USDA economists explained that net cash income is projected to rise more than net farm income because of a large carryover of crops, primarily corn and soybeans, from 2007 that will be sold this year.
The government report did not make projections for individual states. The latest figure for net farm income in Maryland provided by the state's Agricultural Statistics Office was $549.6 million in 2006.
National farm finances this year will be favorably affected by crop production, which is expected to total $175.5 billion. This would exceed last year's record by $25.9 billion, or 17 percent.
Prices of major crops (corn, soybeans and wheat) have been going up in recent months and are expected to either stay at current levels or go higher.
Average farm household income is projected to be $89,434 this year. This would be a gain of 6.3 percent over last year and nearly 20 percent over the average of the past five years.
Unfortunately, the average farm household income does not accurately reflect the agriculture economy.
The government report noted that average off-farm income, including the wages of a spouse working away from home, is expected to reach $75,805 this year. That would be a gain of 4.6 percent and it would account for nearly 85 percent of the average farm operator's household income.
The average income of households from farm earning is forecast to be $13,629 this year. This would be an increase of 16.3 percent over last year and would be driven by higher grain prices.
On average, the government says that farms that rely more on farm income are expected to experience larger growth this year than farms that rely less on farm income.
Commercial farms, which account for 7.8 percent of the family farms, derive nearly 75 percent of total income from farm sources. Operators of these farms are projected to average $229,920 in household income this year, a 9.3 percent increase.
Income of intermediate farm households, which account for 27.5 percent of all family farms, is forecast to rise 7.4 percent to $63,604 this year.
Most family farms (64.7 percent) are rural residence farms, which produce less than $250,000 in products a year and draw the bulk of their income from off-farm jobs. The household income of these farms is expected to rise 4.9 percent to $83,443.
Groups get grants
On another money front, the Maryland Grain Producers Utilization Board has awarded nearly 40 grants -- totaling more than $470,000 -- to organizations across the state this year for research to boost the profitability of grain production and improve the public's understanding of agriculture.
Fifteen of the grants and the bulk of the funds went to the University of Maryland, College Park.
Among other things, university researchers will look for ways to use conservation tillage to minimize nutrient losses from poultry litter, to improve nitrogen efficiency in corn production and explore the potential of canola as a winter cover crop and biodiesel feed stock.
Other grants will be used to produce local television programs to emphasize the positive aspects of agricultural production and help develop the agriculture leaders of the future.
Funds for the grants came from state grain farmers who contributed one half of 1 percent of the money they were paid for their grain to the Grain Producers Association.
"The checkoff program is all about farmers helping their own industry and those consumers that benefit from our products," said Donald Maring, a Carroll County grain farmer and president of the grain producer's utilization board.
"Funding projects, specific to our region's grain farmers, means we get answers to address issues specific to Maryland, whether it be improving seed varieties for our soils or improved nutrition, or finding out the best farm management system to improve our environment," Maring said.
Help with vineyards
If you are considering planting a vineyard, or have recently done so, officials of the University of Maryland Cooperative Extension would like to provide a helping hand.
The university has scheduled a seminar offering an overview of what is involved in establishing a commercial vineyard in the northern and western counties of the state.
It will be held March 13 at Friendly Farms in Upperco starting at 8 a.m. and will run until 4:30 p.m.
This will be the first of a two-part program. A second workshop, to be announced at a later date, will focus on the ins and outs of starting a winery.
There is a registration fee of $30 if paid before March 7. Registration after this date or at the door will be $40.
For additional information, contact David Martin at 410-666-1022 or dmarti@umd.edu.