10-24 FB Snapshot

Michael Stolp is VP-Market Research and Development  at NW Farm Credit Services and every year he puts together something that he refers to as a snapshot. It takes into account all kinds of elements that affect agriculture and its pricing. Drought and weather conditions have affected Northwest producers differently. Crop producers realized varying yields based on commodity, irrigation, and region. Protein producers continue to struggle with rising feed costs, exacerbated by drought impacting 80 percent of agricultural land in the U.S. (USDA).

 Dryland grain producers’ profits are supported by average to above average yields and strong prices reinforced by tight corn and soybean markets. Producers in south and eastern Montana are an exception, where drought reduced yields and challenge producers’ bottom line. Winter wheat germination is stymied by extremely dry conditions.

Late season heat improved production of most irrigated crops, exceeding expectations set by a cool spring. Year-over-year increases in acres and yields are depressing potato markets. While, growers with contracted potatoes will remain profitable, open (i.e. non-contracted) potato prices are below the cost of production. Sugar beet production is also up, supported by increased acres and yields. The large crop is stretching processors’ capacity.