| Ag Market snapshot from Northwest Farm Credit Services 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 northwestfcs.com/industry-insights. Northwest FCS’ 12-month outlook for the agricultural commodities most common in this area is summarized below. Cattle—The cattle outlook suggests slightly profitable returns. Strong demand has supported higher fed cattle and beef prices, but accelerating feed costs will create headwinds for cattle producers and feedlots. Forest Products—Both forest product manufacturers and timberland owners are expected to be profitable. Lumber prices have dropped dramatically but remain at profitable levels. Douglas-fir log prices have peaked to pre-pandemic levels. Overall, the forest products industry should benefit from strong housing construction in 2022, but leading indicators suggest a potential slowdown heading into 2023. Hay—The 12-month outlook for the hay industry suggests profitable returns. A cool spring with intermittent rains has damaged some of the hay crops in Idaho and Washington. Smaller than expected hay production, coupled with lower inventories and high feed prices, will support favorable prices for hay growers. Wheat—The 12-month outlook anticipates profitable returns for wheat producers. Government weather relief programs bolstered growers’ already strong 2021 revenues. A wet, cool spring in the Northwest has producers monitoring for rust, but most wheat is in good condition. In Montana, drought conditions are causing headwinds for wheat yields.
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