Pandemic Recovery Met With Drought Challenges
Northwest Farm Credit Services, the Northwest’s leading agricultural lending cooperative, has released its quarterly Market Snapshot reports covering the state of major agricultural commodities in the region. Northwest FCS teams throughout Idaho, Montana, Oregon and Washington monitor conditions and report outlooks for commodities financed by the co-op.
All market snapshots and audio highlights are posted online at Industry Insights.
Northwest FCS’ 12-month outlook for the agricultural commodities most common in the Northwest are summarized below. Apples: Slight profit margins are foreseen in the apple industry. Although low packouts have been the reality throughout the season, higher quality fruit coming out of storage now is improving packouts. Prices are also improving as supplies dwindle. Returns to growers should improve for the last few months of the season, but low yields will keep overall profit margins slim.
Cattle: Centered around drought, the cattle industry is expected to see unprofitable returns. Drought will force producers to carefully evaluate retention of breeding stock and marketing plans.
Dairy: The dairy outlook anticipates slightly profitable returns. Continued increased feed costs will compress producer profitability. Risk management strategies will be increasingly important as government assistance wanes.
Fisheries: Profitable margins are expected for commercial fishing operations. Robust demand is increasing pricing in several species and COVID-19 vaccines should help lower operation costs. As restaurant sales continue to improve, seafood demand is expected to see an extra boost. Therefore, seafood markets are favorable overall.
Forest Products: Very strong profits suggested for forest products manufacturers, and solid profits expect-
