Despite the fact that everyone needs to eat food, a few farmers in the Selma and Kingsburg area indicate that even the agriculture industry has been affected because of the nation's economic recession. And whether it's a decrease in demand and profits, or an increase in costs, farmers in the area say their industry has been hit hard, specifically because of the economy. Whatever the case, Ryan Jacobsen, executive director of the Fresno County Farm Bureau, said that from what he's heard, the biggest impact the economy has had on farmers in the area is within the realm of agriculture loans. Those, Jacobsen said, have been difficult for farmers to get lately due to a tight credit market.

However, Tom Brown, CEO of Fresno Madera Farm Credit, said his company has been stable during the recession and is still giving out loans to farmers.

Nonetheless, Jacobsen also said he knows farmers in the Selma and Kingsburg area who've been hit by recent declines in their business.

Steve Nash is one of those farmers.

Nash runs two dairies and a farm near Selma and said the dairy industry has been hit because of a handful of factors, although the economic recession tops the list.

But perhaps the largest hit to Nash has been the steady decrease in the price of milk.

"The price of milk has decreased to about half of what it was last year at this time," he said.

Back in December 2007, farmers earned $2.01 a gallon, according to figures from the California Farm Bureau Federation.

As of now, the California Farm Bureau Federation reports that current price-per-gallon profits for California farmers is $1.53 per gallon. The farm bureau also reports there will be further decreases, with milk profits sitting at a price of 98 cents per gallon by Feb. 1.

Nonetheless, a drop in the price of milk isn't the only thing that's affected Nash's business.

Other factors, including an increase in the cost of buying corn -- which he uses for feed for his cows -- also played a role in his business' downturn. In fact, Nash said that the increase in the cost of corn last year directly increased the cost of the feed that he gives to his cows.

This increase in the cost of corn was due to a high demand for ethanol, Nash said. Because of this, farmers like himself had to bid high against ethanol plants in order to get their share of corn last year. And although Nash also farms his own corn, he said he buys most of it.

Nash also said that a downturn in consumer spending, specifically at restaurants, has also affected his business. This is because the milk he sells is made into a butter powder-form of a cheese base that is sold and used within the food industry, he said.

"We've lost a lot of sales through food service, because people aren't eating out as much," he said.

Nash also said this downturn isn't just affecting his business, but other dairy producers as well.

"We're seeing a lot of herds going out of business, and a lot more are soon to follow," he said. "It's a very severe downfall at this time."

In order to deal with this, Nash is cutting some of his expenses by using lower cost feeds to feed to his cows, as well as slimming down the list of businesses that provide services for his operation.

Over in Kingsburg, Bill Hammerstrom, a local produce salesman and farmer, said last year he saw a decrease in demand for the fruit that he sells for the produce company Superior Sales Inc.

This fruit includes tree fruit, citrus and grapes.

"The factor was more so overall demand for the product, and the expendable income," Hammerstrom said. "People just didn't have that income...the overall demand was down all year."

Because of this, it took longer to disperse and sell these fruits. This decrease in demand also affected Hammerstrom's income, he said.

However, he also said the commodities he grows at his own ranch -- which includes peaches, sugar plums and alfalfa -- didn't take a financial hit last year.

Nonetheless, Hammerstrom said that he'll weather the slump and noted he'll start utilizing different marketing techniques to help remedy the situation.

"I'm going to have to chase more business with my customers, and try and establish new relationships with new customers as well," he said.

At present, it remains to be seen if other farmers across Fresno County experienced similar declines in their businesses due to the economy.

That's according to Carol Hafner, interim Fresno County Agricultural Commissioner. She said her office is currently drafting up its countywide crop report for 2008 and because of that, it doesn't have enough information to make a countywide assessment.

"It's a little premature to make an across the board comment," she said.

Regardless, whatever turns the market takes in the next year, both Jacobsen and Brown indicate that not everything is doom and gloom for agriculture.

For his part, Jacobsen said that the production side of agriculture is cyclical and that ups and downs are common.

He also said agriculture has one specific thing to its benefit that other industries may not have.

"During tough economic times, people still have to eat," he said.

In his view, Brown said that while agriculture won't be able to escape the current economic crisis, he believes that 2009 could be a relatively decent year for the industry, considering the situation.

"We're not predicting any kind of disaster or anything," Brown said. "These agricultural producers, they know how to deal with adversity."