January 30-- The biggest driving factor in Georgia's economy is still agriculture and area farmers and agri-businesses heard some predictions on farm income in 2014 Tuesday during a session in Lyons conducted by the University of Georgia.
According to agricultural economist Nathan Smith, "It's not a boom year for row crops. There are still some chances for profitability but the margins will be a lot thinner. The price for the commodity is going down and we're not seeing a drop in the cost, i.e., fertilizer and seed, so margins are going to be tighter."
Smith says it's all about the old law of supply and demand.
"Our production exceeds demand on most commodities so the outlook is not rosy for row crops. We're looking at lower prices for corn and soybeans with peanuts about where they were for last year.
"In cotton, we see the potential for more acres in cotton. Prices are probably not where growers want them, but they are relatively better than corn and soybeans," he said.
Regarding Vidalia onion prices this year, "There's the potential out there for us to do a little bit better in price depending on what happens in Peru, Texas and Mexico," Smith said.