Farm Credit Snapshot
Farm Credit Snapshot. I’m Greg Martin with today’s Line On Agriculture.
Once a quarter Northwest Farm Credit Services takes a snapshot of the ag industry. Michael Stolp Vice President for Market Research and Development has a quick overview.
STOLP: With the 3rd quarter behind us we can look back at a wet, cool start to the season and surprisingly yields beat most producers expectations. In the beef market we see the cattle prices have been record high. Those high prices have really been supported by exports despite a domestic economy that continues to struggle. We also see a U.S. cattle herd that is smaller and that also helps support prices. The dairy industry also had a strong start to 2011. Today, however, milk prices have begun to fall and dairy producers margins are compressed by high feed prices, namely corn; although prices have come down some and hay. In fact in the hay market, that’s one crop that did struggle with that cool wet start to spring. As we look at tight supplies and also particularly tight supplies of high quality hay, dairies and exporters are competing for hay and that’s driving prices up and prices are expected to remain strong through the spring. In the wheat market, that’s one area where the moisture really did help. In Washington, Oregon and Northern Idaho most producers report yields that were well above average. Montana we had a little more variability with yields that were above to below. The wheat market prices have also begun to come down and that’s largely due to world supplies which are strong. We saw improved production in the Black Sea region as well as the European Union. In the potato market, potatoes are sizing up nicely and of course harvest has begun and those markets are strong. Sugar beets likewise are sizing up nicely and harvest is under way. In the apple market the cold wet spring also kept production below full potential but markets are strong and that strength is expected to continue into the new season. Labor though is tight in that market and there’s some concern regarding getting the entire crop picked. The cherry market was also strong. In fact cherries had an exceptional year. We had a long growing season and this season marks the first where there were more cherries available in August that June in that orderly marketing season gave producers really nice prices. In the wine/vineyard industry likewise there’s a lot of attention to the weather that we’ll have during their harvest and there are hopes that crop will remain free from damage from things like rain, mildew and frost but overall when we look to the wineries we see some strong prices there too. And finally in the forest products and nursery industries, those are two industries that really do continue to feel the pressure from a struggling domestic and global economy, as well as a slow, slow housing start.
That’s today’s Line On Agriculture. I’m Greg Martin on the Ag Information Network.
