Although uncontrollable factors such as the weather and the international market again will play major roles in the Inland Northwests agricultural picture in 2007, early indicators are favorable for another positive year.


The wheat industry, by far the regions largest agricultural sector, is enjoying prices in the range of $5 a bushel, the highest theyve been in about a decade. Also, pea and lentil prices are at a 4-year high, and chickpea (garbanzo bean) growers are seeing improved prices.


We are positive, upbeat, and expect another good year in agriculture, says Linda Hendricksen, vice president of marketing for Spokane-based Northwest Farm Credit Services, which lends more than $50 million annually to farmers in the Spokane County-North Idaho area. Theres already three more inches of moisture in the ground than last year, which is good for winter wheat thats in the ground now, she says.


Tom Mick, CEO of the Washington State Wheat Commission, is less upbeat than Hendricksen. He says fuel and fertilizer prices are astronomical, which weakens profitability. Diesel prices in the state of Washington are way over the national average, and thats really hurting growers here, he adds.


The variables that will impact the 2007 wheat crop here include a severe drought in Australia, which exports soft white wheat, the same type thats grown here, Mick says. High freight prices, which could restrict sales to an otherwise willing buyer, such as Egypt, also will be a factor, he says.


Hendricksen says many local wheat growers are diversifying their base strategy, and selling some of their 2007 crop in advance for about $4.70 a bushel.


Kim McGreevy, executive director of the U.S. Dry Pea and Lentil Council, in Moscow, Idaho, says of 2006, Weve had a significant increase in price, but significantly lower yields. Largely due to hot weather last summer, pea crops yielded about 1,500 pounds per acre, compared with a 10-year average of about 1,900 pounds per acre. Prices have risen to about 8 cents a pound for peas, 15 cents a pound for medium lentils, and 20 cents a pound for small lentils.


Many farmers are turning to chickpeas, McGreevy says. Chickpea prices are up to about 25 cents a pound, and chickpea acreage in this region has tripled in the past two years to more than 65,000 acres, says McGreevy.


Hendricksen says the cattle market here is down slightly, but prices still are strong. She says bluegrass grown for grass seed also remains a stable industry here.