Dr. John McKissick said ethanol production has driven up the demand for corn and soybeans and there's a 'bidding' process for acreage to grow enough for fuel and food production.
McKissick predicted good farm prices, but said a continuing drought in 2008 could cut production.
"On the crop side it looks very good but even with higher input cost,the higher prices will more than cover that," McKissick said. "But our beef cattle industry and green industry were tremendously impacted by the past year's drought and there will be lingering effects from that."
McKissick said if the weather does not improve with normal rainfall in the summer, the beef and green industry will be in even more trouble.
"If we have severe water rationing on that side that would factor back to the farm level in terms of the amount products that we are able to produce," McKissick said. "If the weather doesn't cooperate, if you can't use water and the consumers can't use water then good prices don't you any good."
Agribusiness people learned they need to get involved early with the state's newly passed Water Plan.
University professor Dr. Mark Risse said water-planning districts set up under the plan could eventually control the water supply through allocations.
"That could impact any and everybody," Risse said. "It could impact a poultry farmer who's got a well that he's using to water chickens."
Risse, who is University Extension Service Water Program Coordinator, said it would probably be two to three years before any critical water supply decisions are made. The water plan calls for a three-year assessment of state water resources first.
Dr. John McKissick
http://accesswdun.com/article/2008/1/206305