ed for timberland owners. Despite ….
ed for timberland owners. Despite recent drops in lumber pricing, prices remain in very profitable, record territory. Log pricing modestly improved over the quarter, although at a more moderate pace than lumber pricing. Profitable log pricing is supported by record wood product demand.
Hay: The hay outlook calls for slightly profitable returns. Producers in drought-stricken areas will face headwinds to production and profitability. Producers with stable irrigation will benefit from higher hay prices.
Nursery/Greenhouse: Nursery/greenhouse operations are expected to be profitable. Market fundamentals, such as a strong housing demand, should keep sales strong. Supplies are balanced but limited enough to keep prices stable. Increasing labor and freight costs will impact growers’ returns.
Onions: Slightly profitable onion returns are anticipated. Storage onion prices are low. Demand for medium to large onions is driving prices higher.
Potatoes: The profitability outlook suggests slightly profitable returns for contract potato producers. Favorable demand driven by the return of restaurant demand will provide tailwinds to producers and processors alike.
Sugar Beets: The 2021 sugar beet outlook is favorable with profitable returns. Falling stocks-to-use ratio as forecast by the USDA from 14.3% (2020-21) to 11.8% (202122) is favorable for Northwest producers. Warming temperatures are expected to increase growth after headwinds from cooler spring weather.
Wheat: Breakeven returns are anticipated for wheat producers. Drought stunted winter wheat crops while extinguishing spring wheat. While some areas will have average winter wheat crops, other spring wheat crops are being terminated. Crop insurance will provide much needed support to wheat producers.
Wine/Vineyard” Slight profits are anticipated for both vineyards and wineries. Current relatively low grape supplies are increasing pricing, but the industry remains overplanted and good yields would push prices down. Some wineries are very profitable while others continue to struggle depending on their sales channels. Overall, flat consumer demand means wineries will have to find creative ways to capture market share and profits.
