Second Quarter Ag Snapshot

Second Quarter Ag Snapshot. I'm Greg Martin with today's Line On Agriculture. Agriculture's second quarter was marred a bit and mostly by the weather according to a new market snapshot done by NW Farm Credit Services. Michael Stolp, Vice President – Market Research and Development has an overview. STOLP: Northwest producers faced continued economic uncertainty and cool, wet growing conditions this spring. Although dry land grain producers welcomed above the average moisture, it slowed maturities for hay, row crops, and tree fruits and lowered yields for hay and cherries in some cases. Volatility – whether market or weather driven – has increased the importance of risk management and cost control in producers' business plans. Farm Credit does market snap shots around 18 commodities in the NW including dairy and hay. STOLP: As we look to the dairy and hay industries in the second quarter we see a dairy industry that continues to struggle. Although we did see some uptick in dairy prices producers still find many of the milk prices they're receiving below break even prices. When we look at hay markets we had a long, cold, wet spring and that has plagued Northwest hay producers. Growers in Southwestern Idaho and Washington, in particular, have been hit hard with rain, and a number have experienced a complete loss of the first cutting crop. Stolp discusses the cherry industry. STOLP: When we look at tree fruit, cherries is the real story with the cold and wet spring. Fortunately we have had some warmer weather and cherry production in the Northwest is finally ramping up. Adverse spring weather affected both pollination and growth, and, the crop fell behind on maturity due to a lack of heat. Splits and mildew from the rain and cool weather have lowered crop quality and volume. Initial projections of a 13 to 14 million box crop have been revised to 12.5 million boxes or lower. Again Stolp says the weather was an almost across the board factor but there was an exception. STOLP: When we look at row crops I sound like a broken record; cool, wet spring. Particularly in potatoes we saw cool, wet weather that slowed progress of potato production throughout the Northwest. Crops are delayed 10 to 15 days in Idaho, Washington, and Oregon. Anecdotal evidence suggests 2010 potato crop to include fewer acres or slightly below 2009 total acres. Additionally looking to wheat it was one of the few crops that actually enjoyed the cooler, wet weather this spring although many producers had to spray for stripe rust the cost of spray in most cases is hoped to be alleviated by more bushels in the bin. To view the complete report visit farm-credit.com. That's today's Line On Agriculture. I'm Greg Martin on the Ag Information Network.