PITTSFIELD – Maine’s ability to keep its agriculture diversified helps to keep the agriculture industry alive and well in the state, said a top economist at the University of Maine on Monday.
The latest cash receipt statistics for all 2002 agricultural products in New England show Maine does not rely on a single commodity, unlike many other New England states.
By not putting all its eggs in one basket, Maine’s agriculture future is balanced and secure.
“Therefore, when dairy takes a hit, potatoes can pick up. When potatoes are down, maybe blueberries can help balance that dip,” said Timothy Dalton, assistant professor in the Department of Resource Economics and Policy.
Dalton said Maine is unique compared to other New England states because of its geography and smaller population.
Some states rely heavily on a single agricultural product, which has a disastrous effect when there is a price crisis. Vermont is an example, said Dalton, where 72 percent of all agriculture cash receipts came from milk in 2002. Milk prices have crashed there over the past 18 months.
“They are really hurting right now,” said Dalton. “They also ship all their milk out of state and therefore have no real say in the policy decisions as we do here in Maine with the Maine Milk Commission.”
The statistics for each state released this week by the New England Agricultural Statistics Service, an arm of the U.S. Department of Agriculture, show a shift from the diversified picture of the 1960’s and 1970’s, said Dalton.
“Other states in New England were much more diversified in the past,” said Dalton. “Connecticut is a great example of how dramatically things have shifted. When the dairy industry collapsed in Connecticut, and it became more and more profitable to convert land to housing, land intensive systems such as dairy fell by the wayside.”
The system is one of balance, he said. As more people needed homes, agriculture responded to those needs and greenhouse and nursery sales began replacing the traditional crops of milk, eggs, poultry and beef.
Today, states such as Connecticut, Massachusetts and Rhode Island receive their lions’ share of cash receipts from greenhouse and nursery sales. Even in New Hampshire, greenhouse and nursery sales have edged out milk and other agricultural sales, capturing 38 percent of all receipts.
Maine’s greenhouse sales remain small, at 6 percent of cash receipts, but Dalton said that the industry is growing quickly in the state, particularly in southern Maine.
In the overall picture of the state’s agricultural balance, however, Dalton said Maine fares well in its diversification.
The crops and their percentage of cash receipts for 2002 in Maine were: potatoes, 25 percent; milk, 20 percent; eggs, 12 percent; blueberries, 4 percent; other livestock and poultry, 12 percent; other fruits and vegetables, 9 percent; aquaculture, 9 percent; other crops, hay, maple syrup, 8 percent.
“The best way to reduce exposure to risk is to diversify,” said Dalton. “That is the only way to maintain the vitality of the system.”
When the statistics were released this week, milk sales continued to be the top agricultural money producer in New England at $578 million.
Maine’s milk sales for 2002 generated $86,583,000, but they still were off from the previous year by 17 percent. Vermont led New England states in milk sales at $340,868,000.
The statistics show that crop producers fared better than livestock producers in New England as a whole. Livestock sales fell 16 percent below the previous year, while fall potatoes, broadleaf tobacco, apples and the greenhouse industry all increased.
Maine placed second in the region – behind Vermont and Connecticut – for total cash receipts at $444 million despite a 17 percent decrease in milk receipts and a whopping 41 percent plummet in aquaculture receipts.
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