Farm Snapshot Part 2
Farm Snapshot Part 2. I’m Greg Martin with today’s Line On Agriculture.
Yesterday we began a look at the quarterly ag snapshot done by Northwest Farm Credit Services. Michael Stolp, Vice President of Market Research and Development continues his look at how many commodities across the northwest fared beginning with tree fruit.
STOLP: We’ve seen apples that despite a late harvest and cold weather the crop came in better than expected. It is smaller though than we’ve seen in past years. Prices in apples markets are strong, driven by strong domestic and local demand. Cherries ended the year very strong. That strength in cherry markets was driven by an extended marketing season that moved all the way through August. In fact this was the first year that we see more cherries available in August than we saw in June.
Stolp turns his attention to the wine and vineyard market.
STOLP: There was a lot of question around yield and results given the frost of November 2010. Overall we did see a harvest that finished better than expected in Washington. In sales, particularly wine sales, are strong with wines over $20 a bottle continuing to rebound from declined market conditions. Interestingly in Oregon we saw a very strong harvest.
Another area that Northwest Farm Credit Services looks at in their quarterly snapshot is the forestry and nursery/greenhouse industries.
STOLP: The forest product industry saw strong log prices begin the year driven by the export market primarily Chinese demand. As the year concluded and housing starts continued to wane we’ve seen some decrease in those log prices and of course lumber prices also remain soft. The outlook for 2012 is for continued volatility and soft log and lumber prices. And in the nursery/greenhouse industry, those producers are guardedly optimistic about prospects for 2012, hoping for an improved economy but challenges facing that industry include continued uncertainty in the market - high operating costs and labor shortages.
Every quarter Northwest Farm Credit Services makes their ag snapshots available to producers through their website www.farm-credit.com/resources. Select the ‘Knowledge Center’ link.
That’s today’s Line On Agriculture. I’m Greg Martin on the Ag Information Network.
