THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Monday, February 13, 1995              TAG: 9502130063
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: ASSOCIATED PRESS 
DATELINE: WINSTON-SALEM                      LENGTH: Short :   49 lines

N.C. FARMERS GREW MORE, EARNED LESS IN '94

The state's farmers produced more but made less profit last year, say economists from North Carolina State University.

The economists estimated that North Carolina farmers produced $6.3 billion worth of commodities last year, up from $6.1 billion in 1993. But the net farm income - the amount left after expenses - was estimated at less than $2.5 billion, down $24 million from 1993.

The economists published their findings in a recent report, ``North Carolina Farm Income Projections.''

Kelly Zering, an economist who co-edited the report, said that 1994 followed a trend.

``Net farm income has been flat since 1991,'' he said. ``Gross farm income is going up steadily and expenses are going up with it.''

The higher gross farm income in 1994 came from more acreage being planted in crops and from increased production in livestock and poultry, Zering told the Winston-Salem Journal.

Tobacco was a major exception, with sales falling slightly below $1 billion for the first time in four years. Livestock receipts also were lower than projected because of the sharp drop in hog prices in the last four months of 1994.

Total production expenses continued to rise during the year because of the need to buy more feed and the higher prices charged for most farm supplies and services.

``Prices for crops haven't fallen, but they haven't increased either,'' Zering said, comparing prices of major commodities since 1988.

Hog prices are unusually low and cattle prices are falling, while poultry prices have been fairly steady.

``With no noticeable increase in farm prices, combined with increasing production costs, farmers do not have much of a margin,'' Zering said. ``In times when farmers get very productive, prices go down.''

Prices for farm commodities also reflect national and international trends and conditions, he said. While net farm income has not increased in four years, it is much better than in the 1980s, when it fell below $1 billion a year.

KEYWORDS: FARMING ECONOMY by CNB