NWFCS: Low Supply High Quality Pushing Hay Prices Higher

As we conclude our look back on Northwest Farm Credit Services snapshot on the summer of 2017, we look at Hay and Forest Products.  Karen Witt, Vice President at NWFCS says hay producers are operating slightly above break-even margins.

“Low supply of high-quality hay is leading to higher hay prices. Producers look forward to higher prices as supplies continue to tighten. Year-over-year U.S. hay export volume increased 25% in the first seven months of 2017.”

Witt said lumber prices were stronger in the most recent quarter.  She said you can thank limited supply, stable demand and market disruptions from the Softwood Lumber Agreement between the U.S. and Canada for that.

“Resulting in profitable margins for timberland owners and mill operators. Supply shortages are a result of extensive fires in the Northwest and British Columbia. Steady housing starts continue to create stable demand for the forest products industry,” Witt said.

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