Quarterly Ag Report
Quarterly Ag Report. I’m Greg Martin with today’s Line On Agriculture.
What in the world is agriculture doing in 2011? Strong markets for most ag commodities are tempered by increasing uncertainties this spring which include rising input prices, a wet and cold spring that will delay planting, and the unknown impact of the Japan Disaster. Michael Stolp with Northwest Farm Credit Services takes a look at the health of the northwest ag industry in the first quarter of 2011.
STOLP: As we look at our wheat producers in the northwest, they are optimistic and one of the reasons for that optimism is they’re coming off a 2010/11 marketing year with really strong prices and those strong prices were supported by a ban on Russian grain exports as well as low qualities of milling supply wheat throughout the world. And we also see as we look forward to the new crop year ample moisture supplies and uncertainty in wheat production in other areas of the world that should support wheat prices.
Stolp says that cattle producers are also having a good year.
STOLP: The price of feeder cattle are near record highs and it’s really supported by tight supplies and interestingly those supplies aren’t really expected to increase for about 3 years. We also see some expectations of increasing the cow herds slowed by drought conditions in the southern plains in Texas.
He says the dairy market has also improved.
STOLP: Currently milk prices are at profitable margins for our dairy producers. What’s really important to the dairy industry is also exports and a lot of eyes are on New Zealand and trying to determine what will happen with that countries exports about mid way through the year here.
Along with the beef and dairy industries, hay prices have increased.
STOLP: Interestingly when we talk about hay prices and feed prices that is a concern to the cattle industry and the dairy industry in compressing those margins. Some of the reasons for increasing hay prices are those better margins in the dairy industry as well as tight supplies on hay farms. As we think about Japan, that tragedy that occurred, that is a key area of interest for hay producers. About 50% of all hay exports go to Japan.
KnowledgeCenterquarterly Market Snapshots include information on 18 industries and periodic special reports. Northwest FCS provides financing, related services and crop insurance to farmers, ranchers, agribusinesses, commercial fishermen, timber producers, and rural homeowners in Montana, Idaho, Oregon, Washington, and Alaska.
That’s today’s Line On Agriculture. I’m Greg Martin on the Ag Information Network.
