Ag Snapshot Part 2

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

Today we continue our look at the first quarter ag snapshot with Michael Stolp, Vice President of Market Research and Development with Northwest Farm Credit Services. Stolp talks about the tree fruit market

STOLP: In our tree fruit market overall the story is great marketing and strong export demand. Particularly in the apple markets we should see a strong finish and growers generally can expect a profitable return. Looking ahead there is a potential for a record apple crop in the northwest in 2012 and right now of course most apple producers are focused on protecting their crops particularly in select areas where this long cool spring may have some risk of frost.

Stolp turns his attention the wine/vineyard market.

STOLP: We see a bright spot for vineyard producers as they look toward 2012 with a relatively mild winter that should boost production. Additionally we see higher bulk wine inventories and vineyard operators will be positioned favorably when negotiating prices for grape contracts with wineries. In wineries on the other hand, they’ll have a mixed bag. Increasing fuel prices may compromise consumers ability to purchase wine so their challenge will be to maintain prices at the consumer level.

In the forest products market there were some bright spots in exports.

STOLP: However, in the latter part of the year we see the primary demand for those exports to China decreasing with regard to their need for some of those products from the U.S. and then as we look to the nursery/greenhouse industry, they may have hit the bottom of the trough in 2011. In early 2012 we see contracts some places up 10% from the prior year and warm weather across most of the U.S. with exception of the northwest stimulating early demand for plant material.

Northwest Farm Credit Services is the Northwest's leading agricultural lender and crop insurance provider. They are a customer-owned, financial services cooperative, that provides more than $10 billion in credit and related services to those who make their home and livelihood in rural America.

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