Quarterly Ag Report Part 2

Quarterly Ag Report Part 2. I’m Greg Martin with today’s Line On Agriculture.

Each quarter Northwest Farm Credit Services does a review of the ag industry and makes it available to producers across the northwest. Yesterday Michael Stolp with Northwest Farm Credit Services gave us a brief overview of the cattle, dairy and hay business for the first quarter of 2011. Today we continue.

STOLP: Apple markets are also strong. There was lower than expected northern hemisphere production in 2010 and that’s allowed for some really strong movement in that particular commodity space. What we do see though are two winter freezes that are likely to impact production in the apple industry and we just don’t know how much yet.

He now turns his attention to the potato industry.

STOLP: Potato prices are also good and those are bolstered by tight supplies in 2010. Looking forward potato producers are also optimistic that new crop potato supplies should be favorable. 

Stolp takes a look at the sugar beet industry here in the northwest.

STOLP: The big deal in sugar beets was whether or not Roundup Ready seed would be available for 2011 planting. It is available and also sugar prices continue to remain strong even though world sugar supplies are coming back from very low levels in prior years.

As for the wine grape industry, Stolp says it continues to grow.

STOLP: Wineries in the northwest are reporting solid sales increases as the U.S. has recently been named the biggest wine consuming market in the world. 

Finally Stolp looks at the nursery/greenhouse and forest products industries.

STOLP: As we look at the nursery/greenhouse industry those growers expect stronger sales in 2011 but of course all eyes are on consumer sentiment and housing starts. And likewise you might imagine our forest products producers and processors are really watching housing starts. They remain at incredibly low levels and although margins for our forest products producers improved in 2010 they were still well below long term expectations and historical averages.

If you would like to read the entire quarterly report as put out  by Northwest Farm Credit Services be sure and visit their website at www.farm-credit.com/resources and click on the Knowledge Center link.

That’s today’s Line On Agriculture. I’m Greg Martin on the Ag Information Network.