Manhattan ? Kansas farmers made less money last year as government payments dipped and the cost of fuel and fertilizer increased, according to a Kansas State University-sponsored study released Tuesday.

Average net farm income of $27,995 in 2001 was more than $10,000 less than in 2000 for the nearly 2,000 farmers participating in the university’s Kansas Farm Management Assn. program.

Farming was most profitable in southeast Kansas, with average net farm income of $38,788. South-central Kansas farmers earned the least, at $11,996.

In between, average net farm income of $27,643 was reported in northwest Kansas, $28,999 in north-central Kansas, $33,717 in northeast Kansas and $13,446 in southwest Kansas.

Farmers were hit last year with soaring natural gas costs that made irrigation more expensive and contributed to the closing of some fertilizer plants. The remaining fertilizer supply then became costlier.

Dry conditions also forced some farmers to make the costly decision to tear up wheat fields.

Despite the dry conditions, dryland farms reported average net farm income of $29,534, down nearly $6,000 from a year earlier. Irrigated farms, however, reported average net farm income of $13,251, a significant decline from the $60,286 in 2000.

Overall, expenses were up by an average of nearly $12,000, which contributed to lower income levels, said Martin Albright, administrator of the university program.

Lower income prompted some farmers to borrow more money to make ends meet. The average amount of loans held by the farms increased by nearly $25,000.

Albright said many farmers saw net farm income falling bellow family living expenses.

When that happens, Albright said, farmers are “basically burning equity” to continue operating.