Ag Snapshot

Ag Snapshot

Ag Snapshot. I’m Greg Martin with today’s Line On Agriculture.

Each quarter of the year Northwest Farm Credit Services does a report on how the ag industry is faring in the the northwest. Michael Stolp, Vice President of Market Research and Development with Northwest Farm Credit Services takes a look at the latest report.

STOLP: As we reflect on the first quarter of 2012 we see that it has been an overall profitable time for agricultural producers. In beef markets, cattle prices are at historically high levels and that’s largely driven by tight supplies and strong export demand. In 2011, the U.S. was a net beef exporter. Additionally the all cattle number is at levels we haven’t seen since the 1950’s. That’s low.

Stolp now takes a look at the dairy markets.

STOLP: Dairy markets provide a contrast, however, to cattle markets. Falling milk prices in the first quarter of 2012 find dairy producers struggling to be profitable. That follows a 2011 where many producers were profitable. Current prices are at or below many producers break even levels.

He says that the hay markets in the northwest are still very tight.

STOLP: However, after and mild and relatively open winter, hay supplies that weren’t fed are beginning to make their way back into the market. These additional hay supplies have found prices in those markets begin to soften some. Additionally, low milk prices have compromised dairy producers ability to pay strong hay prices and that’s moving those hay prices down as well.

The wheat markets are looking pretty good at this point according to Stolp.

STOLP: Early in March, wheat producers we’re concerned that their crops would be entering the spring with low moisture. However, recent rains have alleviated most of those concerns. Additionally, a recent USDA report that was released around wheat producers prospective plantings came out below expectations for spring wheat. That’s been neutral to bullish for wheat prices. In row crop markets potato producers are having a great year. Prices for un-contracted or open potatoes in the latter half of the 2011/2012 marketing season are strong and as potato producers look towards 2012, they’re meeting processors

Tomorrow we will discuss tree fruits with Northwest Farm Credit Services, Michael Stolp.

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

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