Barren County once again tops Kentucky’s list for burley tobacco production, bringing 5.15 million pounds in 2005, according to the latest Kentucky Agricultural Statistics and Annual Report.

About 11 counties in Kentucky had production of 3.5 million pounds of burley tobacco last year. Kentucky still is first in the nation for its production of burley tobacco and dark tobacco, and second to North Carolina in the nation for its overall tobacco production, the report said.

Kentucky produced more than 175 million pounds of tobacco in 2005, with more than 144 million pounds dedicated to burley tobacco production, according to the report.

But 2005 saw a record low for the state’s burley tobacco production, with only an estimated 70,000 acres harvested – the smallest acreage on record since 1919.

&#8220The shakeout of the tobacco industry is coming as a result of the (loss of the) tobacco program,” said Bill Clary, director of the division of public relations for the Kentucky Department of Agriculture. &#8220What you’re seeing now is a multi-year attempt by the market to find where it’s going to be. UK economists are thinking there might be an up tick in (tobacco) prices in 2007, but we don’t know that yet.”

Burley crops did see an increase in yield last year, estimated at 2,050 pounds, the largest yield since 2002.

Tobacco’s future is uncertain, depending on input costs, price and the availability of labor, which was an issue during this year’s harvest, the report said.

Tobacco income was down for the first year since the tobacco buyout, according to Agriculture Commissioner Richie Farmer, who described Kentucky’s agricultural market as &#8220a picture of an industry in transition” in the annual report.

The agriculture market continues to grow as a contributor to state and local economies, but there isn’t one magic bullet that’s going to change Kentucky’s agricultural market away from tobacco, according to Clary.

Kentucky agricultural cash receipts are expected to reach a record of nearly $4.3 billion in 2007, according to Farmer.

&#8220Farm income was up very strongly this year,” Clary said. &#8220There’s not one thing that is going to change things around, but there are a number of different things that are working to diversify the farm economy.”

Among them are poultry and vegetable production, Clary said, as the beef, cattle and horse industries remain strong.

The transition in the agricultural industry in Kentucky is seen as crop receipts are forecast to rise 13 percent next year on the strength of increasing use of corn and soybeans for biofuels, according to the report.

Farmer said, &#8220Kentucky is emerging as a national leader in the biofuels industry.”

Kentucky ranks 13th in the United States for corn crop production. In 2005, about 155,760,000 bushels were produced in Kentucky.

Corn consumption in the United States now exceeds production, but an increase in corn acres would lead to a decrease in soybean acres, the report said.

The University of Kentucky College of Agriculture recently announced the state agriculture forecast in its 2007 economic outlook.

UK expects Kentucky farm receipts next year to reach $4.296 billion, an increase that breaks 2004’s record of $4.13 billion, assuming normal growing conditions and no major disease outbreaks.

UK said 2006 cash receipts will be $4.1 billion, the second-highest total on record.

The UK report said net farm income is expected to be lower in 2006 and 2007 than the record $2.082 billion in 2005. Lower government payments and rising production costs are expected to cut net income.